Income distribution and exchange in a dynamic search model

Yılmaz, Ensar; ÜNVEREN, Burak

doi:10.1016/j.iref.2010.12.001

Income distribution and exchange in a dynamic search model

Atıf İçin Kopyala

Yılmaz E., ÜNVEREN B.

INTERNATIONAL REVIEW OF ECONOMICS & FINANCE, cilt.20, sa.4, ss.665-678, 2011 (SSCI)

Yayın Türü: Makale / Tam Makale
Cilt numarası: 20 Sayı: 4
Basım Tarihi: 2011
Doi Numarası: 10.1016/j.iref.2010.12.001
Dergi Adı: INTERNATIONAL REVIEW OF ECONOMICS & FINANCE
Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
Sayfa Sayıları: ss.665-678
Yıldız Teknik Üniversitesi Adresli: Evet

Özet

This paper studies the link between income distribution and trade mechanisms in a dynamic search model with two-sided asymmetric information. Buyers and sellers have imperfect information about the income levels of the other group. Furthermore, asymmetry of information about incomes is the source of price dispersion. In such a frictional environment, we capture the effects of a change in inter- and intra-class income distribution on the trade mechanism, which is represented by the expected trade volume and the flux of buyers and sellers in the market. (C) 2010 Elsevier Inc. All rights reserved.