Year: 1987
Author: Gottinger, Hans W.
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 107 (1987), Iss. 3 : pp. 361–378
Abstract
This paper presents a complex optimization problem in the household's demand for money taking computation costs into account. The production of a decision is considered an investment and an agent will not plan to replace an old decision until the expected value of a new decision exceeds its expected cost. It is assumed that the household determines the appropriate time to make a new decision according to the level of its money balances. A major result of the model is that the expected time interval between revisions of the household's decisions is one of the variables determining the demand for money.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.107.3.361
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 107 (1987), Iss. 3 : pp. 361–378
Published online: 1987-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 18