The international diffusion of an innovation: The spread of decimal currency
AbstractThis paper argues that decimalization of currency diffused as a consequence of all three forms of isomorphism: normative, coercive, and mimetic. Furthermore, it is ambiguous as to whether the normative isomorphism was well founded. The patterns of denominations show variety by country as a consequence of a number of factors, including cultural ones. These patterns tend to follow a powers-of-two (binary) principle for smaller denominations and a purer decimal principle for larger denominations, reflecting their utility for cash transactions and for store-of-value functions, respectively.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).
Volume (Year): 39 (2010)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/620175
Decimalization Currency Denominations Numismatics;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Knotek II, Edward S., 2008.
"Convenient prices, currency, and nominal rigidity: Theory with evidence from newspaper prices,"
Journal of Monetary Economics,
Elsevier, vol. 55(7), pages 1303-1316, October.
- Edward S. Knotek II, 2005. "Convenient prices, currency, and nominal rigidity : theory with evidence from newspaper prices," Research Working Paper RWP 05-11, Federal Reserve Bank of Kansas City.
- Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992.
"A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades,"
Journal of Political Economy,
University of Chicago Press, vol. 100(5), pages 992-1026, October.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
- Ellingsen, Tore, 1997.
"The Evolution of Bargaining Behavior,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(2), pages 581-602, May.
- Adrian E. Tschoegl, 2001. "The denominations of US coins: a case of institutional evolution," Journal of Evolutionary Economics, Springer, vol. 11(3), pages 359-384.
- George Selgin, 2003. "Steam, hot air, and small change: Matthew Boulton and the reform of Britain's coinage," Economic History Review, Economic History Society, vol. 56(3), pages 478-509, 08.
- Avant, Deborah, 2000. "From Mercenary to Citizen Armies: Explaining Change in the Practice of War," International Organization, Cambridge University Press, vol. 54(01), pages 41-72, December.
- McCloskey, Donald N, 1983. "The Rhetoric of Economics," Journal of Economic Literature, American Economic Association, vol. 21(2), pages 481-517, June.
- Whynes, David K. & Frew, Emma J. & Philips, Zoe N. & Covey, Judith & Smith, Richard D., 2007. "On the numerical forms of contingent valuation responses," Journal of Economic Psychology, Elsevier, vol. 28(4), pages 462-476, August.
- Mark A. Wynne, 1997.
"More on optimal denominations for coins and currency,"
9702, Federal Reserve Bank of Dallas.
- Wynne, Mark A., 1997. "More on optimal denominations for coins and currency," Economics Letters, Elsevier, vol. 55(2), pages 221-225, August.
- van Hove, Leo & Heyndels, Bruno, 1996. "On the optimal spacing of currency denominations," European Journal of Operational Research, Elsevier, vol. 90(3), pages 547-552, May.
- Sargent, Thomas J & Velde, Francois R, 1999.
"The Big Problem of Small Change,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 31(2), pages 137-61, May.
- Boeschoten, W C & Fase, M M G, 1989. "The Way We Pay with Money," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(3), pages 319-26, July.
- Frenken, Koen & Saviotti, Paolo P. & Trommetter, Michel, 1999. "Variety and niche creation in aircraft, helicopters, motorcycles and microcomputers," Research Policy, Elsevier, vol. 28(5), pages 469-488, June.
- Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 1998. "Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 151-170, Summer.
- Bolton, Gary E., 1997. "The rationality of splitting equally," Journal of Economic Behavior & Organization, Elsevier, vol. 32(3), pages 365-381, March.
- Ernst Juerg Weber, 2009. "Pre-industrial Bimetallism: The Index Coin Hypothesis," Economics Discussion / Working Papers 09-12, The University of Western Australia, Department of Economics.
- Nuño, J.C. & Grasland, C. & Blasco, F. & Guérin-Pace, F. & Olarrea, J. & Luque, B., 2005. "How many coins are you carrying in your pocket?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 354(C), pages 432-436.
- Gourevitch, Peter, 1978. "The second image reversed: the international sources of domestic politics," International Organization, Cambridge University Press, vol. 32(04), pages 881-912, September.
- Kindleberger, Charles P, 1983. "Standards as Public, Collective and Private Goods," Kyklos, Wiley Blackwell, vol. 36(3), pages 377-96.
- Bodenhorn, Howard, 1993. "Small-Denomination Banknotes in Antebellum America," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(4), pages 812-27, November.
- Telser, L. G., 1995. "Optimal denominations for coins and currency," Economics Letters, Elsevier, vol. 49(4), pages 425-427, October.
- Tschoegl, Adrian E, 1997. "The Optimal Denomination of Currency: A Conjecture," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(4), pages 546-54, November.
- Finnemore, Martha & Sikkink, Kathryn, 1998. "International Norm Dynamics and Political Change," International Organization, Cambridge University Press, vol. 52(04), pages 887-917, September.
- Van Hove, Leo, 2001. "Optimal Denominations for Coins and Bank Notes: In Defense of the Principle of Least Effort," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(4), pages 1015-21, November.
- Ofonagoro, Walter I., 1979. "From Traditional to British Currency in Southern Nigeria: Analysis of a Currency Revolution, 1880–1948," The Journal of Economic History, Cambridge University Press, vol. 39(03), pages 623-654, September.
- Mushin, Jerry, 2010. "New decimal currencies' relationships with their predecessors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 316-318, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.