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me if you have any problem downloading papers.
Publications
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A Model of Money with Multilateral Matching
with Manolis Galenianos,
Journal of Monetary Economics, 2008, Vol. 55, pp. 1054-1066
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We introduce sales mechanisms that reveal
private information into a monetary economy, derive the distributions of
money holdings and prices and show that inflation leads to scarcity from
which the poor suffer most. Therefore, inflation acts as a regressive
tax.
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Working Papers
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Sorting and
Decentralized Price Competition May 2008
with Jan Eeckhout, under revision for Econometrica
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We
extend Becker’s (1973) competitive two-sided matching framework to a
process of decentralized price competition, and show that assortative
matching depends on a simple trade-off between the supermodularity of the
value function and the elasticity of the matching frictions. For a large
class of matching frictions the relevant condition is
root-supermodularity.
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Identifying Sorting – In Theory
with Jan Eeckhout, July 2008
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In a simple search model, we show that wage data
alone does not allow for identification of positive or negative
assortative matching. The strength
of sorting can be identified.
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Market
Power and Efficiency in a Search Model July 2008
with Manolis Galenianos and Gabor Virag
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We examine the welfare consequences of the introduction
of a minimum wage and unemployment benefits in a frictional labor market.
We view these policies are a remedy to the distortions in the market
where matching frictions and market power induce low productivity firms
to hire too often. Minimum wages exacerbate the inefficiency because they
introduce additional distortions in wage-setting. Moderate unemployment
benefits increase welfare as they improve the workers’ outside option,
thus limiting the firms’ market power.
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