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Full-Text Articles in Social and Behavioral Sciences
Financial Control Of A Competitive Economy Without Randomness, Ioannis Karatzas, Martin Shubik, William D. Sudderth
Financial Control Of A Competitive Economy Without Randomness, Ioannis Karatzas, Martin Shubik, William D. Sudderth
Cowles Foundation Discussion Papers
The monetary and fiscal control of a simple economy without outside randomness is studied here from the micro-economic basis of a strategic market game. The government’s bureaucracy is treated as a public good that provides services at a cost. A conventional public good is also considered.
Fiat Money And The Natural Scale Of Government, Martin Shubik, Eric Smith
Fiat Money And The Natural Scale Of Government, Martin Shubik, Eric Smith
Cowles Foundation Discussion Papers
The competitive market structure of a decentralized economy is converted into a self-policing system treating the bureaucracy and enforcement of the legal system endogenously. In particular we consider money systems as constructs to make agents’ economic strategies predictable from knowledge of their preferences and endowments, and thus to support coordinated resource production and distribution from independent decision making. Diverse rule systems can accomplish this, and we construct minimal strategic market games representing government-issued fiat money and ideal commodity money as two cases. We endogenize the provision of money and rules for its use as productive activities within the society, and …