Decreasing Cost of Intermediation
نویسندگان
چکیده
This paper attempts to explain how cost of intermediation can be reduced. One solution we postulate is subsidizing the cost of intermediation. The model uses ex-ante identical, spatially separated agents in an overlapping-generations framework. Agents receive relocation shock when they become old. We conclude that government cannot subsidize the cost of intermediation completely but it can reduce cost partially. § Deaprtment of Economics, Southern Illinois University
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