Is Barter a Hobson Choice? A Theory of Barter and Credit Rationing
José De J. Noguera
Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)
September 1, 2004
CERGE-EI Working Paper Series No. 239
This paper proposes a theoretical monetary model to inquire as to whether the growth and decline in barter transactions between firms in Russia during the 1990s was the result of credit rationing or firms. optimal decision. The model also provides an explanation for the negative correlations between the share of total transactions between firms conducted through barter and inflation, and also to the quick decline in barter transactions that followed the 1998 currency crisis.
Number of Pages in PDF File: 27
Keywords: barter, interest rate, credit rationing, optimal choice
JEL Classification: E0, E4, E5, F41, P24, P26working papers series
Date posted: November 5, 2009
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