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Complex Systems Modeling of Community Inclusion Currencies

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  • Clark, Andrew
  • Mihailov, Alexander
  • Zargham, Michael

Abstract

This paper proposes a complex dynamic system subpopulation model for the construction and validation of a novel form of local complementary currency, namely the Grassroots Economics Foundation’s Community Inclusion Currency (CIC) implemented recently in Kenya. First, we highlight that CICs can act as a local liquidity-provision institutional device in poor or isolated economic regions, thereby serving as a market-based mechanism to alleviate poverty. Second, we elicit 50 heterogeneous utility types according to observed transactions behavior in our rich data set, i.e., via revealed – and recorded – preferences, and build a corresponding model and simulation at a meso-economic level.

Suggested Citation

  • Clark, Andrew & Mihailov, Alexander & Zargham, Michael, 2022. "Complex Systems Modeling of Community Inclusion Currencies," Working Paper Series/Institute for Cryptoeconomics/Interdisciplinary Research 8664, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus051:8664
    as

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    References listed on IDEAS

    as
    1. Krueger, Anne O, 1990. "Government Failures in Development," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 9-23, Summer.
    2. Andrew Clark & Alexander Mihailov, 2019. "Why private cryptocurrencies cannot serve as international reserves but central bank digital currencies can," Economics Discussion Papers em-dp2019-09, Department of Economics, University of Reading.
    3. Michael Zargham & Krzysztof Paruch & Jamsheed Shorish, 2020. "Economic Games as Estimators," Springer Proceedings in Business and Economics, in: Panos Pardalos & Ilias Kotsireas & Yike Guo & William Knottenbelt (ed.), Mathematical Research for Blockchain Economy, pages 125-142, Springer.
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    5. Voshmgir, Shermin & Zargham, Michael, 2019. "Foundations of Cryptoeconomic Systems," Working Paper Series/Institute for Cryptoeconomics/Interdisciplinary Research 1, WU Vienna University of Economics and Business.
    6. Philip Arestis & Alexander Mihailov, 2011. "Classifying Monetary Economics: Fields And Methods From Past To Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 769-800, September.
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    More about this item

    Keywords

    Community Inclusion Currencies; Blockchain Technologies; Poverty Alleviation; Eliciting Utility Types; Complex Dynamic Systems; Subpopulation Simulation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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