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Replication data for: Does Money Illusion Matter? Comment

Version
V0
Resource Type
Dataset
Creator
  • Petersen, Luba
  • Winn, Abel
Publication Date
2014-03-01
Description
  • Abstract

    This paper experimentally investigates whether money illusion generates substantial nominal inertia. Building on the design of Fehr and Tyran (2001), we find no evidence that agents choose high nominal payoffs over high real payoffs. However, participants do select prices associated with high nominal payoffs within a set of maximum real payoffs as a heuristic to simplify their decision task. The cognitive challenge of this task explains the majority of the magnitude of nominal inertia; money illusion exerts only a second-order effect. The duration of nominal inertia depends primarily on participants' best response functions, not the prevalence of money illusion.
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Relations
  • Is supplement to
    DOI: 10.1257/aer.104.3.1047 (Text)
Publications
  • Petersen, Luba, and Abel Winn. “Does Money Illusion Matter?: Comment.” American Economic Review 104, no. 3 (March 2014): 1047–62. https://doi.org/10.1257/aer.104.3.1047.
    • ID: 10.1257/aer.104.3.1047 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12

Petersen, Luba; Winn, Abel (2014): Replication data for: Does Money Illusion Matter? Comment. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E112741