Now showing items 1-3 of 3

    • Efficient propagation of shocks and the optimal return on money 

      Cavalcanti, Ricardo de Oliveira; Erosa, Andrés
      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
      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
      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 ...