Now showing items 1-3 of 3

    • Efficient propagation of shocks and the optimal return on money 

      Cavalcanti, Ricardo de Oliveira; Erosa, Andrés
      2008-09
      We study optimal allocations in an environment in which money is essential due to lack of commitment and anonymity of individuals. Because the economy features aggregate preference shocks, we apply a notion of implementability ...
    • Liquidity, money creation and destruction, and the returns to banking 

      Cavalcanti, Ricardo de Oliveira; Erosa, Andrés; Temzelides, Ted
      2005-05
      We build on our earlier model of money in which bank liabilities circulate as a medium of exchange. We investigate optimal bank behavior and the resulting provision of liquidity under a range of central bank regulations. ...
    • A theory of capital gains taxation and business turnover 

      Cavalcanti, Ricardo de Oliveira; Erosa, Andrés
      2007-09
      We present a theory concerning the realization of capital gains where ownership and control are linked as in Holmes and Schmitz (J. Pol. Econ. 103: 1005-1038, 1995). The model developed is a version of a Lucas-tree economy ...