COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 904

"Gold, Liquidity and secured Loans in a Multistage Economy.
Part II: Many Durables, Land and Gold"

Martin Shubik and Shuntian Yao

April 1989

In a previous paper (Shubik and Yao, 1988) we examined a multistage exchange economy with m perishable goods and one infinitely durable gold used as money. we considered an economy without credit and one with one hundred percent secured loans. In this paper we consider an economy with m(1) goods which have finite lives and m(2) goods which are of infinite durability. Historically the two durables which have been prominent in economic activity have been gold and land, although one might wish to include platinum and some other items.

JE Classification: 021, 022, 213

Keywords: Exchange economy, gold, strategic games, durables

See CFP 770