要 旨
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We propose a standard search and bargaining model with divisible money, in which
only the random matching market opens and the generalized Nash bargaining settles
each trade. Assuming fixed production costs, we analytically characterize a tractable
equilibrium, called a pay-all equilibrium, and prove its existence. Each buyer pays
all the money holding as a corner solution to the bargaining problem and each seller
produces a positive amount of goods as an interior solution. The bargaining power parameter
affects the distribution of the money holdings and possibly induces economic
inefficiency. We propose a redistributional monetary transfer that adjusts the bargaining
outcome and improves the allocation efficiency. Moreover, we analyze a temporary
expansion of the money supply that increases social welfare through a redistribution.
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