THE TIMING OF MARKETS AND MONETARY TRANSFERS IN CASH-IN-ADVANCE ECONOMIES |
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| Authors: | KEVIN D. SALYER |
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| Affiliation: | *Department of Economics, University of California at Davis. I am indebted to Stephen LeRoy and Thomas Cooley for insightful comments and constructive criticism. In addition, Richard Sweeney provided invaluable editorial assistance. Of course, all remaining errors are my own. |
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| Abstract: | In cash-in-advance models, do the timing of markets and the timing of the monetary transfer affect equilibrium money demand? The timing of markets generates different individual money demands; however, under the common assumption that agents are identical, these differences do not affect the behavior of equilibrium real balances. In contrast, the timing of the monetary transfer has important implications for agent's information sets; these implications can influence the equilibrium characteristics of real balances. |
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