Measuring the Value Added by Money in Trade

Vlad Ivanenko ()

William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: The paper tests the proposition that money generates value in trade. It examines the data for 5,746 Russian companies for 1997 and finds that money accounts for 24.6 percent of their value-added. The functional form of the return on money in trade is determined to be positive and marginally declining. The paper imputes that Russian GDP lost 8.1 percent in 1997 because of diminished use of money in trade. It hypothesizes that the severity of the Great Depression in the USA of 1930s could have been significantly reduced if the proposed barter networks were implemented at the time.

Keywords: Money; Value-added; Empirical econometrics (search for similar items in EconPapers)
JEL-codes: E4 N10 P34 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2003-11-01
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Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2003-635

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