On the Micro-foundations of Money: The Capitol Hill Baby-Sitting Co-op

Thorsten Hens, Klaus Reiner Schenk-Hoppé () and Bodo Vogt
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Thorsten Hens: University of Zurich
Bodo Vogt: University of Bielefeld

No 03-35, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: This paper contributes to the micro-foundation of money in centralized markets with idiosyncratic uncertainty. It shows existence of stationary monetary equilibria and ensures that there is an optimum quantity of money. The rational solution of our model is compared with actual behavior in a laboratory experiment. The experiment gives support to the theoretical approach.

Keywords: micro foundations of money; optimal quantity of money (search for similar items in EconPapers)
JEL-codes: C73 C91 C92 E40 E41 E42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp, nep-mac and nep-mon
Date: Written
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Working Paper: On the Micro-foundations of Money: The Capitol Hill Baby-Sitting Co-op
Working Paper: On the Micro-Foundations of Money: The Capitol Hill Baby-Sitting Co-op (2003)
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