First Microsimulation Model of a LEDDA Community Currency-Dollar Economy
Results 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 and mean take-home family incomes more than double 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.
|Date of creation:||May 2014|
|Date of revision:||Oct 2014|
|Publication status:||Published in International Journal of Community Currency Research, 2014, vol. 18(A), pp. 11-29. http://ijccr.net/2014/10/14/first-micro-simulation-model-of-a-ledda-community-currency-dollar-economy/|
|Contact details of provider:|| Web page: http://www.PrincipledSocietiesProject.org|
References listed on IDEAS
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.:
- Luca Riccetti & Alberto Russo & Mauro Gallegati, 2015.
"An agent based decentralized matching macroeconomic model,"
Journal of Economic Interaction and Coordination,
Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(2), pages 305-332, October.
- Riccetti, Luca & Russo, Alberto & Gallegati, Mauro, 2012. "An Agent Based Decentralized Matching Macroeconomic Model," MPRA Paper 42211, University Library of Munich, Germany.
- Seppecher, Pascal, 2012. "Flexibility Of Wages And Macroeconomic Instability In An Agent-Based Computational Model With Endogenous Money," Macroeconomic Dynamics, Cambridge University Press, vol. 16(S2), pages 284-297, September.
- Pascal Seppecher, 2010. "Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money," Post-Print hal-00661956, HAL.
- Pascal Seppecher, 2012. "Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money," Post-Print halshs-00727050, HAL.
- McLeay, Michael & Radia, Amar & Thomas, Ryland, 2014. "Money creation in the modern economy," Bank of England Quarterly Bulletin, Bank of England, vol. 54(1), pages 14-27.
- Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
- Corak, Miles, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," IZA Discussion Papers 7520, Institute for the Study of Labor (IZA).
- Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
- Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
- Frank Thompson, 2013. "Morally arbitrary economic advantage," Chapters, in: Capitalism on Trial, chapter 25 Edward Elgar Publishing.
- Maëlle Della Peruta & Dominique Torre, 2013. "Virtual social currencies for unemployed people: social networks and job market access," Working Papers halshs-00856480, HAL.
- Maëlle Della Peruta & Dominique Torre, 2014. "Virtual Social Currencies for Unemployed People: Social Networks and Job Market Access," GREDEG Working Papers 2014-16, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
- Maëlle Della Peruta & Dominique Torre, 2015. "Virtual social currencies for unemployed people: social networks and job market access," Post-Print halshs-01298419, HAL.
- John C. Boik, 2014. "Economic Direct Democracy: A Framework to End Poverty and Maximize Well-Being," Book, Principled Societies Project, number 0004.
- Stodder, James, 2009. "Complementary credit networks and macroeconomic stability: Switzerland's Wirtschaftsring," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 79-95, October.
- Eugenio Caverzasi & Antoine Godin, 2013. "Stock-flow Consistent Modeling through the Ages," Economics Working Paper Archive wp_745, Levy Economics Institute. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:psp:wpaper:0001. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John Boik)
If references are entirely missing, you can add them using this form.