Can monetizing trade lower welfare? An example

Citation data:

Economics Letters, ISSN: 0165-1765, Vol: 81, Issue: 2, Page: 179-186

Publication Year:
2003
Usage 89
Abstract Views 71
Downloads 17
Link-outs 1
Captures 32
Exports-Saves 28
Readers 4
Citations 1
Citation Indexes 1
Repository URL:
https://digitalcommons.chapman.edu/economics_articles/73
DOI:
10.1016/s0165-1765(03)00168-x
Author(s):
Gabriele Camera; Robert R. Reed; Christopher J. Waller
Publisher(s):
Elsevier BV
Tags:
Economics, Econometrics and Finance; Money; Specialization; Lotteries; Economics
article description
In decentralized trade individuals self-insure against consumption risk via costly diversification of skills. Although money acts as consumption insurance, it may lead to a moral hazard problem. If the problem is severe, monetizing trade can lower welfare relative to barter.