Full Citation

Title: First Micriosimulation Model of a LEDDA Community Currency-Dollar Economy

Citation Type: Working Paper

Publication Year: 2014

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Abstract: Results are presented for a first-in-class microsimulation model of a community currency (local currency) system. The agent-based, stock-flow consistent model uses U.S. Census income data as a starting point to project the evolution of community currency and dollar flows within a simplified county-level economy over a period of 28 years. Changes in the distribution of family income are tracked. The community currency system under investigation is the Token Exchange System (TES), a component of the larger Local Economic Direct Democracy Association (LEDDA) framework under development by the Principled Societies Project. The model captures key design features of a TES, and results suggest parameter ranges under which the simulated TES is stable and capable of achieving intended aims. Median take-home family income more than doubles during the simulation period, income inequality is nearly eliminated, and the unemployment rate drops to a 1 percent structural level. The need for more sophisticated modeling of a TES and avenues for future research are discussed.

Url: http://www.principledsocietiesproject.org/RePEc/files/0001.pdf

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Authors: Boik, John C.

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Publication Number: 0002

Institution: Principled Societies Project

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Data Collections: IPUMS USA

Topics: Methodology and Data Collection, Other

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