A wide body of empirical evidence finds that approximately 25 percent of fiscal stimulus
payments (eg, tax rebates) are spent on nondurable household consumption in the quarter …

Traditional asset-pricing theories assume complete market participation, despite
considerable empirical evidence that most investors participate in a limited number of …

Evidence on the portfolio holdings and transaction patterns of households suggests that the
burden of inflation is not evenly distributed. We build a monetary growth model consistent …

We analyze the effects of money injections on interest rates and exchange rates when
agents must pay a Baumol-Tobin-style fixed cost to exchange bonds and money. Asset …

This paper develops a rational, liquidity-based model of closed-end funds (CEFs) that
provides an economic motivation for the existence of this organizational form: They offer a …

In this paper, we develop an equilibrium model for stock market liquidity and its impact on
asset prices when constant market presence is costly. We show that even when agents' …

African-American students are considerably more likely than their white peers to be rated as
disruptive by their teacher and experience school discipline, but are also much less likely to …

Central to ongoing debates over the desirability of monetary unions is a supposed trade-off,
outlined by: a monetary union reduces transactions costs but renders stabilization policy …

This paper represents an equilibrium model for the demand and supply of liquidity and its
impact on asset prices and welfare. We show that, when constant market presence is costly …

The distribution of money across households is much more similar to the distribution of
financial assets than to that of consumption expenditures. This is a puzzle for theories which …