This page offers the latest information about workshop series by WINPEC (Waseda Institute of Political Economy).
Macroeconomics
Jan. 16
2023
| Title |
Money creation in the Lagos-Wright model of one-sided private information |
| Date |
January 16, 2023 (Monday) 10:40-12:10 |
| Location |
via Zoom |
| Abstract |
We study optima in a version of the Lagos-Wright model with private information about the marginal utility of consumption at the pairwise meeting. Our notion of implementability postulates that there is no unilateral defection and that taxation is either impossible or subject to agents' participation constraint. The optimal implementable mechanism divides gain from trade between the producer and consumer based on the consumer's money holding, and is never the consumer-take-all. Mild inflation that comes about by way of a regressive positive transfer scheme can improve welfare over the no-transfer scheme. |
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