This 1991 Econometrica paper by Andrew Atkeson examines optimal international lending when a sovereign borrower can both repudiate its debt and privately choose whether to invest or consume borrowed …
This 1997 Journal of Monetary Economics paper by Fernando Alvarez and Andrew Atkeson asks whether the segmented-markets model of money pioneered by Grossman and Weiss (1983) and Rotemberg (1984, 1985) …
Alvarez, Atkeson, and Kehoe build a cash-in-advance model in which households face a fixed real cost to transfer funds between a goods market and an asset market, so that in any period only a fraction …