Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential. This paper takes a further step toward this integration by introducing labor, capital, and neoclassical firms. The resulting framework nests a search-theoretic monetary model and a standard neoclassical growth model as special cases.
Search, Money and Capital: A Neoclassical DichotomyS. Boragan Aruoba and Randall D. Wright ,
6( 35 )
Journal of Money Credit and Banking