Abstract

Essays on Incomplete Markets and Macroeconomics consists of contributions of theoretical and empirical nature in the sub-field of Macroeconomics through two chapters.In the first chapter, titled Liquidity Regulation in a Monetary Economy, although it is commonly argued that the prevention of bank runs is the main reason to regulate banks’ asset portfolios, I show that a market failure that justifies such regulation lies on the incompletenessof financial markets when there is risk about the aggregate distribution of transaction types. I develop a framework in which outside (fiat, government-provided) and inside (plastic, bank-created) money co-exist as means of payment under either complete or incompletefinancial markets for aggregate risk. The welfare analysis is reduced to comparing only two parameters: the currency-to-liability ratio C which is set by the government and the fraction D of banks’ depositors engaged in cash-only transactions (inside money cannot be accepted). In equilibrium, when C

Committee Chair

Gaetano Antinolfi, Costas Azariadis

Committee Members

Michele Boldrin, Fernando M. Martin, Robert Parks,

Comments

Permanent URL: https://doi.org/10.7936/K7902375

Degree

Doctor of Philosophy (PhD)

Author's Department

Economics

Author's School

Graduate School of Arts and Sciences

Document Type

Dissertation

Date of Award

Spring 5-15-2018

Language

English (en)

Download

Available for download on Sunday, May 15, 2118

Included in

Economics Commons

Share

COinS