1
اقتصاد::
انگیزهی احتیاطی
The core environment without banks combines a cash-in-advance economy as in Lucas and Stokey (1987) with preference shocks in the spirit of Diamond and Dybvig (1983).9 Households demand money at t = 0 to finance transactions at t = 1 subject to the cash-in-advance constraint, but the preference shocks affect money demand as well by creating an additional precautionary motive to hold money.
However, with these choices, no bad equilibrium exists because the precautionary motive to fly to liquidity is not strong enough.
To obtain a stronger precautionary motive, I set KL to a lower value (i.e.
A number of extensions could increase the precautionary motive to fly to liquidity (such as adding a sequential service constraint) and thus generate multiple equilibria with the correct parameter values.
واژگان شبکه مترجمین ایران