Crime and the Labor Market in a Search Model with Pairwise-Efficient Separations (2007)
Engelhardt, Bryan, Rocheteau, Guillaume, Rupert, Peter
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment à la Becker (1968). All workers, irrespective of their labor force status can commit crimes and...
Inflation and Unemployment in General Equilibrium (2007)
Rocheteau, Guillaume, Rupert, Peter, Wright, Randall
When labor is indivisible, there exist efficient outcomes with some agents randomly unemployed (Rogerson 1988). We integrate this idea into the modern theory of monetary exchange, where some trade...
Inflation, Output, and Welfare (2004)
Lagos, Ricardo, Rocheteau, Guillaume
This paper studies the effects of anticipated inflation on aggregate output and welfare within a search-theoretic framework. We allow money-holders to choose the intensities with which they search...
On the Friedman Rule in Search Models with Divisible Money (2003)
Berentsen, Aleksander, Rocheteau, Guillaume
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in which the terms of trades are determined endogenously. We show that ex post...
On the Friedman Rule in Search Models with Divisible Money (2003)
Berentsen, Aleksander, Rocheteau, Guillaume
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in which the terms of trades are determined endogenously. We show that ex post...
On the Friedman Rule in Search Models with Divisible Money (2003)
Berentsen, Aleksander, Rocheteau, Guillaume
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in which the terms of trades are determined endogenously. We show that ex post...
On the Friedman Rule in Search Models with Divisible Money (2003)
Berentsen, Aleksander, Rocheteau, Guillaume
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in which the terms of trades are determined endogenously. We show that ex post...
On the Launching of a New Currency (2002)
Lotz, Sebastien., Rocheteau, Guillaume.
Journal of Money, Credit, and Banking - Volume 34, Number 3 (Part 1), August 2002
On the efficiency of monetary exchange: how divisibility of money matters Elektronische Daten (2002)
Macroéconomie des frictions de l'échange [microform] : chômage et monnaie / (1998)
Thesis (doctoral)--Université Paris II, 1998.
Existe-t'il un seigneuriage sur la dette publique ? /--Guillaume Rocheteau. (1994)
Mémoire de DEA : Monnaie, Finance, Banque / Paris 2 ; session de septembre 1994.
Money in Search Equilibrium, in Competitive Equilibrium, and in Competitive Search Equilibrium
Guillaume Rocheteau, Randall Wright
We compare three pricing mechanisms for monetary economies: bargaining (search equilibrium); price taking (competitive equilibrium); and price posting (competitive search equilibrium). We do this in...
Inflation and Welfare in Models with Trading Frictions
Guillaume Rocheteau, Randall Wright
We study the effects of inflation in models with various trading frictions. The framework is related to recent search-based monetary theory, in that trade takes place periodically in centralized and...
Friedman Meets Hosios: Efficiency in Search Models of Money
Aleksander Berentsen, Guillaume Rocheteau, Shouyong Shi
In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy. We show that the same frictions that give fiat money a positive value generate...
Richard Dutu, Ed Nosal, Guillaume Rocheteau
Gresham’s law, which says that bad money tends to drive good money out of circulation, may account for many nations’ episodes of money troubles, as far back as ancient Athens. This Commentary...
Bargaining in Monetary Economies
Christopher Waller, Guillaume Rocheteau
Money, Search, Bargaining, Inflation
In this paper we provide a survey of the payment literature in a unified framework. The environment is a variant of the Lagos and Wright (2005) model of monetary exchange, where some trades occur in...
Search in asset markets: market structure, liquidity, and welfare
Ricardo Lagos, Guillaume Rocheteau
This paper investigates how market structure affects efficiency and several dimensions of liquidity in an asset market. To this end, we generalize the search-theoretic model of financial...
The minimum wage and the labor market
Guillaume Rocheteau, Murat Tasci
New models of employment show that there are some cases in which a minimum wage can have positive effects on employment and social welfare. The effects depend ultimately on the prevailing market wage...
Crime and the labor market: a search model with optimal contracts
Bryan Engelhardt, Guillaume Rocheteau, Peter Rupert
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment `a la Becker (1968). All workers, irrespective of their labor force status can commit crimes and the...
Crime and the Labor Market in a Search Model with Pairwise-Efficient Separations
Bryan Engelhardt, Guillaume Rocheteau, Peter Rupert
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment à la Becker (1968). All workers, irrespective of their labor force status can commit crimes and the...
Inflation and Unemployment in General Equilibrium
Guillaume Rocheteau, Peter Rupert, Randall Wright
When labor is indivisible, there exist efficient outcomes with some agents randomly unemployed (Rogerson 1988). We integrate this idea into the modern theory of monetary exchange, where some trade...
Money in Search Equilibrium, in Competitive Equilibrium, and in Competitive Search Equilibrium
Guillaume Rocheteau, Randall Wright
We compare three market structures for monetary economies: bargaining (search equilibrium); price taking (competitive equilibrium); and price posting (competitive search equilibrium). We also extend...
INFLATION, OUTPUT, AND WELFARE
Ricardo Lagos, Guillaume Rocheteau
We study the effects of anticipated inflation on aggregate output and welfare within a search-theoretic framework. We consider two pricing mechanisms: ex post bargaining and a notion of competitive...
Money and the Gains from Trade
Aleksander Berentsen, Guillaume Rocheteau
This article studies the role of money in environments where in each meeting there is a double coincidence of real wants. Traders who meet at random finance their purchases through current...
Friedman Meets Hosios: Efficiency in Search Models of Money
Aleksander Berentsen, Guillaume Rocheteau, Shouyong Shi
This article studies optimal monetary policy in an economy with endogenous search decisions. We show that the same frictions that give fiat money a positive value generate an inefficient quantity of...
On the Launching of a New Currency.
Lotz, Sebastien, Rocheteau, Guillaume
This paper studies the appropriate way of launching a new fiat currency within a dual currency search-theoretic framework. We demonstrate that legal tender laws may not be sufficient to guarantee the...
Equilibrium Unemployment and Wage Formation with Matching Frictions and Worker Moral Hazard
This paper synthesizes the shirking and the matching approaches of equilibrium unemployment in order to endogenize the wage formation process as a function of labour market conditions. The steady...
The Role of Money in Double Coincidence Environments
Aleksander BERENTSEN, Guillaume ROCHETEAU
This paper studies the role of money in asymmetric double coincidence of real wants environments where in each meeting each agent is a consumer of the other agent's production. Traders who meet at...
On the Efficiency of Monetary Exchange : Why Divisibility of Money Matters
Aleksander BERENTSEN, Guillaume ROCHETEAU
Why is money divisible? To explore this question we introduce a mismatch problem into search-theoretic models of monetary exchange. We use alternative assumptions about the divisibility of goods and...
Inflation and Unemployment in General Equilibrium
Guillaume Rocheteau, Peter Rupert, Randall Wright
When labor is indivisible, there exist efficient outcomes with some agents randomly unemployed, as in Rogerson (1988). We integrate this idea into the modern theory of monetary exchange, where some...
Money and competing assets under private information
I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment arrangements. I emphasize informational asymmetries about asset fundamentals to...
Inflation and Welfare: A Search Approach
BEN CRAIG, GUILLAUME ROCHETEAU
This paper uses a search model of monetary exchange to provide new insights for evaluating the welfare costs of inflation. We first show that the search model of money can rationalize the estimates...
Coordination failures in the labor market
Guillaume Rocheteau, Murat Tasci
Can two countries, or two different states, with similar technologies, resources, and policies exhibit differences in labor market performance? In contrast to a commonly held view, the answer is yes...
Positive and normative effects of a minimum wage
Guillaume Rocheteau, Murat Tasci
We review the positive and normative effects of a minimum wage in various versions of a search-theoretic model of the labor market.
Crashes and recoveries in illiquid markets
Ricardo Lagos, Guillaume Rocheteau, Pierre-Olivier Weill
We study the dynamics of liquidity provision by dealers during an asset market crash, described as a temporary negative shock to investors’ aggregate asset demand. We consider a class of dynamic...
The fate of one-dollar coins in the U.S.
Sébastien Lotz, Guillaume Rocheteau
The United States has introduced two one-dollar coins in the past 25 years, both of which have not circulated widely. Many other countries have replaced lower-denomination notes with coins and have...
Rethinking the welfare cost of inflation
Ben Craig, Guillaume Rocheteau
New models of monetary economies, developed in the last 15 years, suggest that traditional measures of the welfare cost of inflation may underestimate the true loss that inflation inflicts on...
Modern economists have built models of the labor market, which isolate the market’s key drivers and describe the way these interact to produce particular levels of unemployment. One of the most...
Liquidity in asset markets with search frictions
Ricardo Lagos, Guillaume Rocheteau
We study how trading frictions in asset markets affect the distribution of asset holdings, asset prices, efficiency, and standard measures of liquidity. To this end, we analyze the equilibrium and...
Aleksander Berentsen, Guillaume Rocheteau
This paper investigates the role of money in markets in which producers haveprivate information about the quality of the goods they supply. When the fractionof high-quality producers in the economy...
Launching of a New Currency in a Simple Random Matching Model
Sebastien Lotz, Guillaume Rocheteau
No abstract.
The 2006 Summer Workshop on Money, Banking, and Payments: an overview
Ed Nosal, Guillaume Rocheteau, Randall Wright
This Policy Discussion Paper summarizes the papers presented at the 2006 Summer Workshop on Money, Banking, and Payments. Every summer since 2002, some of the best researchers in the areas of theory,...
Can an Unemployment Insurance System Generate Multiple Natural Rates?
This article studies some macroeconomic consequences of the financing of an unemployment insurance scheme. Under a balanced-budget rule, when both taxes and unemployment benefits are proportional to...
Money and capital as competing media of exchange
Ricardo Lagos, Guillaume Rocheteau
We construct a model where capital competes with fiat money as a medium of exchange, and we establish conditions on fundamentals under which fiat money can be both valued and socially beneficial....
Ricardo Lagos, Guillaume Rocheteau
This paper studies the effects of anticipated inflation on aggregate output and welfare within a search-theoretic framework. We allow money-holders to choose the intensities with which they search...
Ricardo Lagos, Guillaume Rocheteau
We investigate how trading frictions in asset markets affect portfolio choices, asset prices and efficiency. We generalize the search-theoretic model of financial intermediation of Duffie, Gârleanu...
Money in search equilibrium, in competitive equilibrium, and in competitive search equilibrium
Guillaume Rocheteau, Randall Wright
We compare three market structures for monetary economies: bargaining (search equilibrium); price taking (competitive equilibrium); and price posting (competitive search equilibrium). We also extend...
Inflation, output, and welfare
Ricardo Lagos, Guillaume Rocheteau
This paper studies the effects of anticipated inflation on aggregate output and welfare within a search-theoretic framework. We allow money-holders to choose the intensities with which they search...
Friedman meets Hosios: efficiency in search models of money
Aleksander Berentsen, Guillaume Rocheteau, Shouyong Shi
In this paper the authors study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy. They show that the same frictions that give fiat money a positive...
Bargaining and the value of money
Guillaume Rocheteau, Christopher Waller
Search models of monetary exchange have typically relied on Nash (1950) bargaining or strategic games that yield an equivalent outcome to determine the terms of trade. By considering alternative...
State-dependent pricing, inflation, and welfare in search economies
Ben R. Craig, Guillaume Rocheteau
This paper investigates the welfare effects of inflation in economies with search frictions and menu costs. We first analyze an economy where there is no transaction demand for money balances: Money...
On the recognizability of money
Richard Dutu, Ed Nosal, Guillaume Rocheteau
This paper develops a model of currency circulation under asymmetric information. Agents are heterogeneous and trade in bilateral matches. Coins are intrinsically valuable and are available in two...
General equilibrium with nonconvexities, sunspots, and money
Guillaume Rocheteau, Peter Rupert, Karl Shell, Randall Wright
We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties....
Ricardo Lagos, Guillaume Rocheteau
We investigate how trading frictions in asset markets affect portfolio choices, asset prices and efficiency. We generalize the search-theoretic model of financial intermediation of Duffie, Gârleanu...
Money and capital as competing media of exchange
Ricardo Lagos, Guillaume Rocheteau
We construct a model in which capital competes with fiat money as a medium of exchange, and establish conditions on fundamentals under which fiat money can be both valued and socially beneficial....
Ed Nosal, Guillaume Rocheteau, Randall Wright
We provide a summary and an overview of the papers presented at the Federal Reserve Bank of Cleveland’s 2004 Workshop on Money, Banking, and Payments, held during the weeks of August 3-7 and August...
Inflation and welfare: a search approach
Ben Craig, Guillaume Rocheteau
This paper extends recent findings in the search-theoretic literature on monetary exchange regarding the welfare costs of inflation. We present first estimates of the welfare cost of inflation using...
The 2005 Summer Workshop on Money, Banking, and Payments: an overview
Ed Nosal, Guillaume Rocheteau, Randall Wright
This PDP summarizes the papers presented at the 2005 Summer Workshop on Money, Banking, and Payments at the Cleveland Fed. Papers covered a wide variety of topics in monetary theory and policy,...
Superneutrality and the welfare effects of inflation
Guillaume Rocheteau, Ricardo Lagos
This paper studies the long-run effects of anticipated inflation on output and welfare within a search-theoretic framework. We allow money-holders to choose the intensities with which they search for...
Greasing the Wheels of Trade: Inflation with Menu Costs and Search Frictions
Guillaume Rocheteau, Ben Craig
This paper investigates the welfare and output effects of inflation in a monetary economy with search frictions and sticky prices. Agents trade in both a centralized Walrasian market and a...
Bryan Englehardt, Guillaume Rocheteau, Peter Rupert
The same policies or technological changes that affect the labor market can also affect the extent of criminal activities. For instance, while an increase in unemployment benefits can raise...
General Equilibrium with NonConvexities, Sunspots and Money
Guillaume Rocheteau, Peter Rupert, Karl Shell, Randall Wright
We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties....
Ricardo Lagos, Guillaume Rocheteau
This paper investigates how the degree of trading frictions in asset markets affects portfolio allocations, asset prices, efficiency, and several measures of liquidity, such as execution delays,...
Working Time Regulation in a Search Economy with Worker Moral Hazard
This paper analyzes the consequences of a working time reduction within a matching model with worker moral hazard. In the "laissez faire", workers and employers bargain over wages and working hours....
Launching of a New Currency in a Simple Random Matching Model
Sébastien LOTZ, Guillaume ROCHETEAU
This paper studies the launching of a new fiat currency within a search-theoretic framework. We show that legal tender laws may not be sufficient to guarantee the acceptability of the new currency,...
Balanced-Budget Rules and Indeterminacy of the Equilibrium Unemployment Rate.
This article examines a new case of indeterminacy of the equilibrium unemployment rate due to the financing of government expenditure. Under a balanced-budget rule, the existence of multiple...
On the Friedman Rule in Search Models with Divisible Money
Aleksander Berentsen, Guillaume Rocheteau
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods in which the terms of trades are determined endogenously. We show that ex post...
General Equilibrium with Nonconvexities, Sunspots, and Money
Rocheteau, Guillaume, Rupert, Peter, Shell, Karl, Wright, Randall
We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties....
State-dependent pricing, inflation, and welfare in search economies
Craig, Ben, Rocheteau, Guillaume
We investigate the welfare effects of inflation in economies with search frictions and menu costs. We first analyze an economy where there is no transaction demand for money balances: Money is a mere...
Crashes and Recoveries in Illiquid Markets
Ricardo Lagos, Guillaume Rocheteau, Pierre-Olivier Weill
We study the dynamics of liquidity provision by dealers during an asset market crash, described as a temporary negative shock to investors aggregate asset demand. We consider a class of dynamic...
Liquidity in asset markets with search frictions
Guillaume Rocheteau, Ricardo Lagos
We develop a search-theoretic model of financial intermediation and use it to study how trading frictions affect the distribution of asset holdings, asset prices, efficiency and standard measures of...
Money and capital as competing media of exchange
Lagos, Ricardo, Rocheteau, Guillaume
We construct a model where capital competes with fiat money as a medium of exchange, and establish conditions on fundamentals under which fiat money can be both valued and socially beneficial. When...
General equilibrium with nonconvexities and money
Rocheteau, Guillaume, Rupert, Peter, Shell, Karl, Wright, Randall
In a general-equilibrium economy with nonconvexities, there are sunspot equilibria with good welfare properties; sunspots can ameliorate the effects of the nonconvexities. For these economies, we...
Liquidity in asset markets with search frictions
Ricardo Lagos, Guillaume Rocheteau
We develop a search-theoretic model of financial intermediation and use it to study how trading frictions affect the distribution of asset holdings, asset prices, efficiency, and standard measures of...
Aleksander Berentsen, Guillaume Rocheteau
In this paper we compare production inefficiencies in bilateral meetings generated by two types of trading frictions: double-coincidence frictions and information frictions. For both types of...
Aleksander Berentsen, Guillaume Rocheteau
This paper investigates the role of fiat money in decentralized markets, where producers have private information about the quality of the goods they supply. Money is divisible, terms of trade are...
Money and the Gains from Trade
Aleksander Berentsen, Guillaume Rocheteau
This paper studies the role of money in environments where in each meeting there is a double coincidence of real wants. Traders who meet at random finance their purchases through current production,...
On the Efficiency of Monetary Exchange:How Divisibility of Money Matters
Aleksander Berentsen, Guillaume Rocheteau
We use alternative assumptions about the divisibility of goods and money and the ability of agents to use lotteries on money to investigate to what extent the indivisibility of money is the cause for...
Friedman Meets Hosios: Efficiency in Search Models of Money
Aleksander Berentsen, Guillaume Rocheteau, Shouyong Shi
In this paper we study the inefficiencies of the monetary equilibrium and optimal monetary policies in a search economy. We show that the same frictions that give fiat money a positive value generate...
On the Friedman Rule in Search Models with Divisible Money
Aleksander Berentsen, Guillaume Rocheteau
This paper studies the validity of the Friedman rule in a search model with divisible money and divisible goods where the terms of trades are determined endogenously. We show that ex post bargaining...