You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Aggregate Demand Management in Search Equilibrium
Peter A. Diamond
Journal of Political Economy
Vol. 90, No. 5 (Oct., 1982), pp. 881-894
Published by: The University of Chicago Press
Stable URL: http://www.jstor.org/stable/1837124
Page Count: 14
You can always find the topics here!Topics: Steady state economies, Trade, Political economy, Unemployment, Economic models, Economic externalities, Commercial production, Consumer economics, Economic modeling, Capital costs
Were these topics helpful?See something inaccurate? Let us know!
Select the topics that are inaccurate.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
Equilibrium is analyzed for a simple barter model with identical risk-neutral agents where trade is coordinated by a stochastic matching process. It is shown that there are multiple steady-state rational expectations equilibria, with all non-corner solution equilibria inefficient. This implies that an economy with this type of trade friction does not have a unique natural rate of unemployment.
Journal of Political Economy © 1982 The University of Chicago Press