Experimental Evidence on Currency Competition in Integrated Economies

Last registered on October 18, 2024
View Trial History

Pre-Trial

Trial Information

General Information

Title
Experimental Evidence on Currency Competition in Integrated Economies
RCT ID
AEARCTR-0014493
Initial registration date
October 08, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
October 18, 2024, 4:43 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Primary Investigator

Name
Marcos Cardozo
Affiliation
Universidad Católica del Uruguay
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Yarolsav Rosokha
PI Affiliation
Purdue University
Contact Investigator
PI Name
Cathy Zhang
PI Affiliation
Purdue University
Contact Investigator

Additional Trial Information

Status
In development
Start date
2024-10-08
End date
2025-04-30
Keywords
Behavior
Additional Keywords
international currency, monetary policy, inflation, experimental macroeconomics
JEL code(s)
C92, D83, E40
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This project intends to use laboratory experiments to study how economic integration and relative country sizes affect competition between two intrinsically worthless currencies as media of exchange. We design the experiments to implement a two-country, two-currency search model based on the theoretical work of Zhang (2014). In particular, in this project, we vary the degree of economic integration and relative country sizes. We then test the model's predictions on currency acceptance, trade, and welfare.
External Link(s)

Registration Citation

Citation
Cardozo, Marcos, Yarolsav Rosokha and Cathy Zhang. 2024. "Experimental Evidence on Currency Competition in Integrated Economies." AEA RCT Registry. October 18. https://doi.org/10.1257/rct.14493-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2024-10-08
Intervention End Date
2025-04-30

Primary Outcomes

Primary Outcomes (end points)
1. Inflation rates: coefficient of regression of log prices (in CM stage) per round, using dummy treatments and controls
2. Foreign currency acceptance rates: Proportion of times sellers accept foreign currency in the Decentralized Market (DM)
3. Welfare: Measured as utility of consumption minus disutility of production in the DM
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
The experiment investigates the effects of economic integration on inflation, currency use, and welfare in a two-country environment. The key treatment variables are country sizes and their economic integration parameter, using a between subjects design with three treatments:
1. Same size, Low integration
2. Same size, High integration
3. Different sizes. One country's integration is matched to treatment 1, while the other country's integration is matched to treatment 2.
Experimental Design Details
Not available
Randomization Method
Individual subjects
Randomization Unit
Individual subjects
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
224 individuals
Sample size: planned number of observations
224 individuals
Sample size (or number of clusters) by treatment arms
4 session for each of 3 treatments, treatments 'Low' and 'High' have 16 subjects per session, and treatment 'Asymmetric' has 24 subjects per session, thus 2*4*(16) + 4*(24) = 224.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Purdue University IRB
IRB Approval Date
2024-08-08
IRB Approval Number
IRB-2022-1247
Analysis Plan

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information