Loanable funds versus money creation in banking: a benchmark result

We establish a benchmark result for the relationship between the loanable-funds and the money-creation approach to banking. In particular, we show that both processes yield the same allocations when there is no uncertainty. In such cases, using the much simpler loanable-funds approach as a shortcut does not imply any loss of generality. When there is aggregate risk with complete contracts and complete markets, we indicate that a restricted equivalence result holds.

A new class of mixed fractional differential equations with integral boundary conditions

This paper deals with a new class of mixed fractional differential equations with integral boundary conditions. We show an important equivalence result between our problem and nonlinear integral Fredholm equation of the second kind. The existence and uniqueness of a positive solution are proved using Guo-Krasnoselskii’s fixed point theorem and Banach’s contraction mapping principle. Different types of Ulam-Hyers stability are discussed. Three examples are also given to show the applicability of our results.

Matching in Networks with Bilateral Contracts: Corrigendum

Hatfield and Kominers (2012) introduced a model of matching in networks with bilateral contracts and showed that stable outcomes exist in supply chains when firms’ preferences over contracts are fully substitutable. Hatfield and Kominers (2012) also asserted that in their setting, full substitutability is equivalent to the assumption that all indirect utility representations of each firm’s preferences are quasisubmodular; we show here that this claimed equivalence result does not hold in general. We show instead that full substitutability is equivalent to weak quasisubmodularity of all indirect utility representations. (JEL C78, D85)