Money, Social Status, and Capital Accumulation in a Cash-in-Advance Model

Citation:

Gong L, Zou H-fu. Money, Social Status, and Capital Accumulation in a Cash-in-Advance Model. Journal of Money, Credit and Banking. 2001;33(2):284-293.

摘要:

This paper presents an infinite-horizon model of optimal capital accumulation with the social-status concern and the cash-in-advance constraint. When the cash-in-advance constraint applies to both consumption and investment, money is not superneutral. If only consumption is subject to the cash-in-advance constraint, inflation increases capital accumulation.