Is Barter a Hobson's Choice? A Theory of Barter and Credit Rationing

Noguera, José de J.

doi:10.2139/ssrn.847444

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Is Barter a Hobson's Choice? A Theory of Barter and Credit Rationing

CERGE-EI Working Paper No. 239

27 Pages Posted: 14 Nov 2005

See all articles by José de J. Noguera

José de J. Noguera

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences

Date Written: September 2004

Abstract

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.

Keywords: Barter, interest rate, credit rationing, optimal choice.

JEL Classification: E0, E4, E5, F41, P24, P26

Suggested Citation: Suggested Citation

Noguera Santaella, José de Jesus, Is Barter a Hobson's Choice? A Theory of Barter and Credit Rationing (September 2004). CERGE-EI Working Paper No. 239, Available at SSRN: https://ssrn.com/abstract=847444 or http://dx.doi.org/10.2139/ssrn.847444