First Microsimulation Model of a LEDDA Community Currency-Dollar Economy

John Boik ()

No 1, Working Paper from Principled Societies Project

Abstract: 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.

Keywords: LEDDA; token; TES; sustainability; agent-based; stock-flow consistent; simulation; local currency; community currency; complementary currency; e-currency; economic democracy; economic direct democracy (search for similar items in EconPapers)
JEL-codes: B59 C63 E51 I31 J31 O15 P48 Q56 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-05, Revised 2014-10
New Economics Papers: this item is included in nep-cmp
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Citations: View citations in EconPapers (7)

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/

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