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Learning and Money Adoption

Datos Bibliográficos

ID10180113
AutoresMichael Choi (0000-0003-3525-9613, University of California, Irvine), Fan Liang (0000-0001-5169-2623, Loyola Marymount University)
Año2022
Volumen131
Número7
Páginas1772-1796
Fecha de publicación2022-11-10
Peer ReviewedSí
Open AccessNo
TipoARTICLE
RevistaJournal of Political Economy (JOURNAL)
Identificadores de la revistaISSN: 0022-3808 • E-ISSN: 1537-534X
EditorialUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/722983
OpenAlexW4308884818
IdiomaEN
Referencias citadas18

We consider a dynamic monetary economy where agents gradually learn about the holding cost of a new asset and coordinate to adopt it as money or abandon it. We provide closed-form solutions for state-contingent asset prices and agents' adoption decision. The transactional benefits of using money are endogenous and can convexify or concavify the payoff structure. Thus, the arrival of new information can raise or reduce the asset's price, which is in sharp contrast to standard insights in experimentation models. Full disclosure of the asset type and an increase in the learning speed improve information but have different welfare implications

Asset (computer security · Economics · Endogenous money · Microeconomics · Monetary economics · Monetary policy · Stochastic game · Transactional leadership · Welfare · Computer Science · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact

  • A Unified Framework for Monetary Theory and Policy Analysis

    Ricardo Lagos, Randall Wright•Journal of Political Economy•2005

  • On Money as a Medium of Exchange

    Nobuhiro Kiyotaki, Randall Wright•Journal of Political Economy•1989

Velocidad de citaciónhistorical
Altamente citadoNo
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