In decentralized trade individuals self-insure against consumption risk via costly diversification of skills. Although money acts as consumption insurance, it may lead to a moral hazard problem. If the problem is severe, monetizing trade can lower welfare relative to barter.

Can monetizing trade lower welfare? An example / Camera, Gabriele; Reed, Robert R.*; Waller, Christopher J.. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 81:2(2005), pp. 33-40. [10.1016/S0165-1765(03)00168-X]

Can monetizing trade lower welfare? An example

Camera, Gabriele;
2005

Abstract

In decentralized trade individuals self-insure against consumption risk via costly diversification of skills. Although money acts as consumption insurance, it may lead to a moral hazard problem. If the problem is severe, monetizing trade can lower welfare relative to barter.
2005
Can monetizing trade lower welfare? An example / Camera, Gabriele; Reed, Robert R.*; Waller, Christopher J.. - In: ECONOMICS LETTERS. - ISSN 0165-1765. - STAMPA. - 81:2(2005), pp. 33-40. [10.1016/S0165-1765(03)00168-X]
Camera, Gabriele; Reed, Robert R.*; Waller, Christopher J.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/635746
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