Now showing items 1-8 of 8

    • The empirical performance of transaction period length in cash-in-advance models of money demand 

      Arslan, Yavuz (Bilkent University, 2001)
      Cash-in-advance models of money demand make strong predictions about stochastic properties of key endogenous macroeconomic variables. Hodrick, Kocherlakota, and Lucas (1991) showed that the models by Lucas (1984), ...
    • Endogenous currency substitution 

      Göçener, Aydın (Bilkent University, 2004)
      We introduce a simple two-country exchange model with money introduced via a cash-in-advance constraint with a variable money velocity. Currency substitution is endogenous to this model. While all purchases must be made ...
    • The equity premium puzzle : a survey of the literature 

      Tözün, Bahar (Bilkent University, 2006)
      This thesis is a survey of the literature on the equity premium puzzle. The puzzle was introduced in 1985 by Mehra and Prescott, who noted that the huge premium of equities over bonds is not consistent with the predictions ...
    • The inflation tax and period length in cash-in-advance models 

      Çubuk, Bedriye (Bilkent University, 2002)
      The aim of this study is to focus on the frequency with which consumers conduct financial transactions, and the role that this plays in the determination of the money velocity, price level, transactions cost and consequently ...
    • Market power and purchasing power parity : a general equilibrium model 

      Vural, Hakan (Bilkent University, 2004)
      In this thesis, the effect of market power on exchange rate is analyzed in a general equilibrium Lucas’s tree type model. The basic hypothesis that explains the level of the exchange rate is the Purchasing Power Parity ...
    • Rare events and news in a rational expectations economy 

      Köseoğlu, Elif (Bilkent University, 2003)
      We examine the effect of inflation risk on a rational expectations monetary economy with endogenous production. The risk that we consider is of a change in the rate money growth from an initial steady-state level to a ...
    • The relationship between velocity and interest rate in the cash in advance model 

      Saraçoğulları, Sezin (Bilkent University, 2010)
      This thesis considers the long run relationship between velocity of money and nominal interest rate with the proposed Cash in Advance model. In the long run analysis, the steady state relationship between velocity and ...
    • Shoe-leather and 'bricks-and-mortar' as inputs into transaction technology 

      Başdaş, Ülkem (Bilkent University, 2007)
      This thesis explains the difference between the long run and short run income and interest elasticities of money demand by the presence of a fixed input into the creation of transactions in a cash-in advance model of ...