Supply-constrained fixed price equilibria in monetary economies (Q1057769)

The main purpose of this paper is to prove the existence of supply- constrained equilibria in which money is not rationed. In such equilibria there is no demand rationing. According to the author such nonsymmetric treatment corresponds to the observation that rationing of supplies occurs much more frequently than rationing of demands. More specifically, by considering a simplified version of the Dehez-Dreze model [see the author, ibid. 9, 83-97 (1982; Zbl 0471.90030)], the author obtains the following results. First, if prices of the index makers are fixed, their result is strengthened in the sense that the statement 'there is a non- money commodity with non-zero rationing' is replaced by 'there is an unrationed non-money commodity.' Apparently, the difference between these two statements does not seem so great as the author thinks. Next, in the case that the prices are free, the theorem of \textit{M. Kurz} [J. Econ. Theory 26, 100-123 (1982; Zbl 0512.90021)] is strengthened in the sense that unlike his model, money is not rationed in equilibrium.