This essay surveys the new monetarist approach to liquidity. Work in this literature strives for
empirical and policy relevance, plus rigorous foundations. Questions include: What is …

This essay surveys the literature on directed search and competitive search equilibrium,
covering theory and a variety of applications. These models share features with traditional …

Search-theoretic models of monetary exchange are based on explicit descriptions of the
frictions that make money essential. However, tractable versions of these models typically …

We survey the literature on search-theoretic models of the labor market. We show how this
approach addresses many issues, including the following: Why do workers sometimes …

We study how intermediation and asset prices in over‐the‐counter markets are affected by
illiquidity associated with search and bargaining. We compute explicitly the prices at which …

This paper examines the sets of feasible allocations in a large class of economic
environments in which commitment is impossible (following Myerson [8], the standard …

We present a model of asset valuation in which short-selling requires searching for security
lenders and bargaining over the lending fee. If lendable securities are difficult to locate, then …

We provide the impact on asset prices of search-and-bargaining frictions in over-the-counter
markets. Under certain conditions, illiquidity discounts are higher when counterparties are …

We compare three market structures for monetary economies: bargaining (search
equilibrium); price taking (competitive equilibrium); and price posting (competitive search …

We propose a model in which assets with identical cash flows can trade at different prices.
Infinitely lived agents can establish long positions in a search spot market, or short positions …