• Medientyp: Bericht; E-Book
  • Titel: Is money essential? An experimental approach
  • Beteiligte: Jiang, Janet Hua [Verfasser:in]; Norman, Peter [Verfasser:in]; Puzzello, Daniela [Verfasser:in]; Sultanum, Bruno [Verfasser:in]; Wright, Randall D. [Verfasser:in]
  • Erschienen: Ottawa: Bank of Canada, 2023
  • Sprache: Englisch
  • DOI: https://doi.org/10.34989/swp-2023-39
  • Schlagwörter: E4 ; Economic models ; Central bank research ; C92 ; E5
  • Entstehung:
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  • Beschreibung: Monetary exchange is deemed essential when better incentive-compatible outcomes can be achieved with money than without it. We study essentiality both theoretically and experimentally, using finite-horizon monetary models that are naturally suited to the lab. We also follow the mechanism design approach and study the effects of strategy recommendations, both when they are incentive-compatible and when they are not. Results show that output and welfare are significantly enhanced by fiat currency when monetary equilibrium exists. Also, recommendations help if they are incentive-compatible but not much otherwise. Sometimes money is used when it should not be and we investigate why, using surveys and measures of social preferences.
  • Zugangsstatus: Freier Zugang