Since 2014
Graphic Explanation for Welfare Economic Foundation of Hoarding Loss
Journal of Economics Bibliography
View Archive Info| Field | Value | |
| Title |
Graphic Explanation for Welfare Economic Foundation of Hoarding Loss
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| Creator |
MIURA, Shinji; Independent
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| Subject |
Money circulation; Welfare economics; Under-consumption; Paradox of thrift; Intertemporal choice.
D61; E21; E40. |
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| Description |
Abstract. Saving brings an economic loss. The author intends to publish a paper, which gives a foundation of this paradox of thrift by connecting money circulation analysis and welfare economics in the case where saving is limited to hoarding. As an introduction of the intended paper, this paper provides a simple explanation for hoarding loss using some graphs. Under certain conditions, the representative agent hoards money in order to increase utility, but the hoarding actually decreases it against agent’s rational intention. This irrationality of rationality occurs because the agent maximizes their utility while lowering the budget of the entire relevant term. This conclusion is derived from the agent making the decision with an ignorance of the whole expenditure reflux. Since the interest of a selfish agent is limited to their private range, the agent ignores the reflux despite of its objective truthfulness.Keywords. Money Circulation, Welfare Economics, Under-Consumption, Paradox of Thrift, Intertemporal Choice.JEL. D61, E21, E40.
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| Publisher |
Journal of Economics Bibliography
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| Contributor |
—
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| Date |
2016-06-18
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.kspjournals.org/index.php/JEB/article/view/763
10.1453/jeb.v3i2.763 |
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| Source |
Journal of Economics Bibliography; Vol 3, No 2 (2016): June; 265-289
2149-2387 |
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| Language |
eng
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| Relation |
http://www.kspjournals.org/index.php/JEB/article/view/763/932
http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/763/356 http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/763/357 http://www.kspjournals.org/index.php/JEB/article/downloadSuppFile/763/358 |
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| Rights |
Copyright (c) 2016 Journal of Economics Bibliography
http://creativecommons.org/licenses/by-nc/4.0 |
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