Currency and Credit in a Private Information Economy.

S-Tier
Journal: Journal of Political Economy
Year: 1989
Volume: 97
Issue: 6
Pages: 1323-44

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In an environment with private information, spatial separation, and limited communication, a currency-like object and more standard named credits can be distinguished. The credit objects can be used among agents in an enduring relationship, that is, among agents with known trading histories, whereas the currency-like object must be used among relative strangers. In this environment, collectively determined Pareto-optimal rules make the level of the currency-like object and the mix of currency to named credits responsive to individual needs and to economy-wide states. Total indebtedness is determined by the number of lenders, that is, by preference or demand shocks, and the mix of currency to credits is determined by transaction patterns among the agents. Copyright 1989 by University of Chicago Press.

Technical Details

RePEc Handle
repec:ucp:jpolec:v:97:y:1989:i:6:p:1323-44
Journal Field
General
Author Count
1
Added to Database
2026-01-29