First Microsimulation Model of a LEDDA Community Currency--Dollar Economy
AbstractResults are presented for a first-in-class microsimulation model of a community currency (local currency) system. The agent-based, stock-flow consistent model uses US Census income data as a starting point to project the evolution of community currency and dollar flows within a simplified county-level economy over a period of 28 years. Changes in the distribution of family income are tracked. The community currency system under investigation is the Token Exchange System (TES), a component of the larger Local Economic Direct Democracy Association (LEDDA) framework under development by the Principled Societies Project. The model captures key design features of a TES, and results suggest parameter ranges under which the simulated TES is capable of achieving stated aims. Median take-home family income more than doubles during the simulation period, income inequality is nearly eliminated, and the unemployment rate drops to a 1 percent structural level. The need for more sophisticated modeling of a TES, and avenues for future research, are discussed.
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Bibliographic InfoPaper provided by Principled Societies Project in its series Working Paper with number 0001.
Length: 29 pages
Date of creation: May 2014
Date of revision: Aug 2014
Contact details of provider:
Web page: http://www.PrincipledSocietiesProject.org
LEDDA; token; TES; sustainability; agent-based; stock-flow consistent; simulation; local currency; community currency; complementary currency; e-currency; economic democracy; economic direct democracy;
Find related papers by JEL classification:
- B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
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