Intermediary cost and coexistence puzzle

Young Sik Kim, Manjong Lee

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The coexistence puzzle is explained via an interaction between intermediary cost and uncertainty with regards to consumption trade. If a trade opportunity as a buyer is more likely to arise, ex-ante net return on bond at the margin would be negative up to a certain amount of transactions and, therefore, agents are willing to hold money in the presence of an interest-bearing bond.

Original languageEnglish
Pages (from-to)142-145
Number of pages4
JournalEconomics Letters
Volume117
Issue number1
DOIs
Publication statusPublished - 2012 Oct 1

Fingerprint

Costs
Intermediaries
Coexistence
Margin
Interaction
Buyers
Uncertainty

Keywords

  • Coexistence puzzle
  • Interest-bearing asset
  • Intermediary cost

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Intermediary cost and coexistence puzzle. / Kim, Young Sik; Lee, Manjong.

In: Economics Letters, Vol. 117, No. 1, 01.10.2012, p. 142-145.

Research output: Contribution to journalArticle

Kim, Young Sik ; Lee, Manjong. / Intermediary cost and coexistence puzzle. In: Economics Letters. 2012 ; Vol. 117, No. 1. pp. 142-145.
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