On the Micro-foundations of Money: The Capitol Hill Baby-Sitting Co-op
AbstractThis paper contributes to the micro-foundation of money in centralized markets with idiosyncratic uncertainty. It shows existence of stationary monetary equilibria and ensures that there is an optimum quantity of money. The rational solution of our model is compared with actual behavior in a laboratory experiment. The experiment gives support to the theoretical approach.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 03-35.
Length: 20 pages
Date of creation: Jun 2003
Date of revision:
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More information through EDIRC
micro foundations of money; optimal quantity of money;
Other versions of this item:
- Hens, Thorsten & Schenk-Hoppe, Klaus Reiner & Vogt, Bodo, 2003. "On the micro-foundations of money : the Capitol Hill Baby-Sitting Co-op," HWWA Discussion Papers, Hamburg Institute of International Economics (HWWA) 255, Hamburg Institute of International Economics (HWWA).
- Thorsten Hens & Klaus Reiner Schenk-Hoppé & Bodo Vogt, . "On the Micro-foundations of Money: The Capitol Hill Baby-Sitting Co-op," IEW - Working Papers, Institute for Empirical Research in Economics - University of Zurich 108, Institute for Empirical Research in Economics - University of Zurich.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-08-17 (All new papers)
- NEP-EXP-2003-08-17 (Experimental Economics)
- NEP-MAC-2003-08-17 (Macroeconomics)
- NEP-MON-2003-08-17 (Monetary Economics)
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