A Dynamic General Equilibrium Model of MX Adoption

Abstract

I write down a dynamic general equilibrium monetary model of the adoption of financial technologies. Producers/consumers are permitted to spend resources - “adopt a financial technology” - to avoid a cash-in-advance constraint. The model includes a complete accounting of the flows of cash and securities among a continuum of heterogeneous agents. Stationary equilibria of the model are shown to be very similar - and in special cases identical - to the static monetary model of Mulligan and Sala-i-Martin (1996).


Click here to send email to me requesting an Adobe Acrobat copy of the paper. The request should include your email address and institutional affiliation.

© copyright 1997-1998 by Casey B. Mulligan.