Money and specialization

Research output: Contribution to journalArticlepeer-review

11 Scopus citations


This paper examines the relationship between specialization and the use of money in two versions of the search-theoretic monetary model. The first version establishes a surprising result that specialization is more likely to occur in a barter economy than in a monetary economy. The result is reversed in the second version where a different specification of preferences is adopted to limit the scope of barter. This contrast between the results provides a concrete illustration of the general argument that money encourages specialization only when it enlarges the extent of the market.

Original languageEnglish (US)
Pages (from-to)99-113
Number of pages15
JournalEconomic Theory
Issue number1
StatePublished - Jun 1997

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


Dive into the research topics of 'Money and specialization'. Together they form a unique fingerprint.

Cite this