المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: TheoryofComputation_MISCELLANEOUS, Transaction cost, Endogenous money, General equilibrium theory, Partial equilibrium, Fiat money, TheoryofComputation_GENERAL, Monetary economics, Microeconomics, symbols.namesake, Nash equilibrium, Money illusion, symbols, Economics, Game theory

الوصف: In an infinite-time decentralized sequence economy, agents use fiat money to bridge markets as if they make trades in a centralized economy, to avoid huge transaction cost that all agents’ going together must incur. The model in this paper formulates the process how agents decide the fiat money’s nominal value. Three new concepts are suggested – plan of choices, Temporarily Partial Equilibrium and Intra-Date Equilibrium; and this paper proves the existence of these two equilibriums. Then, based on the equilibrium prices and allocations of the corresponding infinite-time Walrasian economy, this paper proves that all agents’ accepting fiat money with unchanged nominal value is a Nash equilibrium, which guarantees fiat money’s essentiality.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::0cb492d97b1be70673b6b01feb13831eTest
https://doi.org/10.2139/ssrn.1767565Test

المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: Transaction cost, symbols.namesake, Endogenous money, Sequential game, General equilibrium theory, Process (engineering), Nash equilibrium, Fiat money, symbols, Competitive economy, Economics, TheoryofComputation_GENERAL, Monetary economics

الوصف: This paper mainly addresses why people are rationally willing to cooperate with one another to accept fiat money from the perspective of decentralized sequential general equilibrium framework by using dynamic game to determine agents’ expectation of nominal prices in unrevealed future. The model formulates the process that agents determine fiat money’s nominal value competitively in an infinite-time decentralized sequence economy where agents use fiat money to bridge markets to avoid the huge transaction cost. It is proved that all agents’ expectation with fiat money’s unchanged nominal value is self-fulfilling with a Nash Equilibrium so as to guarantee fiat money’s essentiality.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::d9f361558a1009ec600e6eea53e71169Test
https://doi.org/10.2139/ssrn.1935730Test

المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: Dynamic programming, Mathematical optimization, General equilibrium theory, Economics, Excess demand function, Mathematical economics, Nonlinear programming

الوصف: Traditional ways to prove the existence of general equilibrium have to entail a common condition that the excess demand function must be continuous. This paper presents a new approach to change it. The technique used in this paper is that we tackle general equilibrium problem, which in fact is a static nonlinear programming problem, with dynamic programming. By this technique, it is strictly proven that general equilibrium with discontinuous excess demand function still exists.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::1bf1b7656bc3bef35f274a5971ff947fTest
https://doi.org/10.2139/ssrn.721362Test

المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: Transaction cost, Microeconomics, General equilibrium theory, media_common.quotation_subject, Economics, Fundamental theorems of welfare economics, Perfect competition, Excess demand function, Welfare, Profit (economics), media_common, Nonlinear programming

الوصف: After taking into account positive transaction costs via tackling static nonlinear programming with dynamic programming, this paper reaches three main conclusions: 1) The aggregate excess demand function of each market will be discontinuous at many price points, but the transfiguration of the graph of aggregate excess demand of each commodity will be continuous with respect to prices of other commodities, and at those price points incurring discontinuity, the corresponding traders' utility or profit will be indifferent between different choices. 2) Via a new approach able to tackle the discontinuous aggregate excess demand, it is proved that, there must exist a market equilibrium price vector in a perfectly competitive economy with positive transaction costs even if each consumer's preference isn't convex. 3) Transaction cost probably spoils the satisfaction of those two fundamental theorems of welfare economics, as well as it ruins the social aggregate welfare through three approaches.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::d651fb448d69198e556bc5cba5165b78Test
https://doi.org/10.2139/ssrn.576801Test

المؤلفون: Zhiping Xie

المصدر: SSRN Electronic Journal.

مصطلحات موضوعية: Transaction cost, education.field_of_study, General equilibrium theory, Population, Social Welfare, Walrasian auction, Supply and demand, Microeconomics, symbols.namesake, Nash equilibrium, symbols, Economics, Fraction (mathematics), education

الوصف: The functional relationships between the price vector and consumer's Marshallian demand and/or producer's optimal actual sale will be directly revealed respectively by two new geometric methods in general equilibrium framework without storage. The impact of transaction cost shared by individual on these functional relationships will be directly analyzed. Then, it is proved that, the demand and supply functions of different commodities will be no longer mathematically continuous, if there is a special kind of transaction cost independent of what are traded, which is mainly caused by information cost. This makes sure that the transaction cost will substantially disturb the Walrasian equilibrium without storage if non-infinitesimal fraction of population synchronously shift their decisions. And then, it is else suggested that transaction cost will dramatically cut down social welfare. Finally, a revised model with storage as a theoretic way out for Walrasian economy of zero-storage will be presented to suggest that a competitive economy with zero-storage probably isn't at Nash equilibrium.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::16c86d16b5ca2a6991016781aa6120e0Test
https://doi.org/10.2139/ssrn.415241Test