Is gold an efficient store of value?
type: Item
instance of: scholarly article
title: Is gold an efficient store of value?
zbMATH Open document ID: 1052.91067
author: Pradeep Dubey
author: Martin Shubik
author: John D. Geanakoplos
published in: Economic Theory
publication date: 2003-08-20T00:00:00Z
full work available at URL: d1031-r.pdf
review text: The authors prove that the higher the ratio of consumption value to service value, the more suitable is the durable commodity to be money. Let us add that a typical durable commodity has both some consumption value (utility yielded at a point of consumption when it ``disappears as a smoke'') and some service value (utility yielded on an account of its beauty (gold, jewelery) without getting dissipated. Next they show that if there is enough tobacco-like money at the beginning, then the equilibrium is efficient, under the assumption of a diminishing marginal utility to consuming tobacco, and that the marginal utility of tobacco is bounded from below. It is also demonstrated that if money is gold-like, then for every generic \(u\in U\) the allocation yield by \(u\) is not efficient.
reviewed by: Leszek S. Zaremba
Mathematics Subject Classification ID: 91B64
Mathematics Subject Classification ID: 91B52
Mathematics Subject Classification ID: 91B16
zbMATH DE Number: 1968468
zbMATH Keywords: money
zbMATH Keywords: tobacco
MaRDI profile type: Publication
OpenAlex ID: W2257219810
DOI: 10.1007/S00199-002-0266-Y
description: scientific article; zbMATH DE number 1968468