@techreport{Occhino2004Existence,
abstract = {Several papers have recently adopted the segmented markets model as a
framework for monetary analysis. The characteristic assumption is that some
households never participate in financial markets. This paper proves the existence of an equilibrium for segmented markets models where monetary policy
is defined in terms of the short-term nominal interest rate. The model allows
to consider the important cases where monetary policy affects output, and responds to any source of uncertainty, including output itself. The assumptions required for existence constrain the maximum value and the variability of the
nominal interest rate. The period utility function is logarithmic. The proof is
constructive, and shows how the model can be solved numerically. A similar
proof can be used in the case that monetary policy is defined in terms of the
bond supply.},
author = {Filippo Occhino},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {C60; E52; 330; segmented markets; limited participation; interest rate monetary policy; existence; Geldpolitik; Zins; Marktsegmentierung; Cash-in-Advance-Modell; Gleichgewicht; Theorie},
language = {eng},
number = {2004,11},
title = {Existence of Equilibrium for Segmented Markets Models with Interest Rate Monetary Policies},
type = {Working papers / Rutgers University, Department of Economics},
url = {http://hdl.handle.net/10419/23190},
year = {2004}
}