Mohammad Davoodalhosseini is a Senior Analyst in the Funds Management and Banking Department (FBD). His main research interests are Monetary Economics and Search Theory. He is also interested in the role of private information in markets with search frictions, with applications to inter-bank, labor and over-the-counter markets. His current research concerns electronic money. Mohammad received his PhD in Economics from the Pennsylvania State University.
Constrained efficient allocation (CE) is characterized in a model of adverse selection and directed search (Guerrieri, Shimer, and Wright (2010)). CE is defined to be the allocation that maximizes welfare, the ex-ante utility of all agents, subject to the frictions of the environment.