Document Type
Discussion Paper
Publication Date
6-1-1993
CFDP Number
1046
CFDP Pages
42
Abstract
The role of long lived assets is considered in serving as hostages to extend the domain of trustless trade in an exchange economy. Assuming that individuals have life cycle preferences, we consider the most general set of utility functions consistent with these preferences and a stationary equilibrium for an OLG economy. The influence of the type of asset, durable or storable on the need for money is considered.
Recommended Citation
Shubik, Martin and Yao, Shuntian, "The Money Rate of Interest and the Influence of Assets in a Multistage Economy with Gold or Paper Money: Part I" (1993). Cowles Foundation Discussion Papers. 1289.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1289