Fungibility and Consumer Choice: Evidence from Commodity Price Shocks

Article, Preprint OPEN
Justine Hastings; Jesse M. Shapiro;
  • Journal: The Quarterly Journal of Economics,volume 128,issue 4,pages1,449-1,498
  • Related identifiers: doi: 10.1093/qje/qjt018
  • Subject:
    • jel: jel:D03 | jel:D12 | jel:L15 | jel:Q41

We formulate a test of the fungibility of money based on parallel shifts in the prices of different quality grades of a commodity. We embed the test in a discrete-choice model of product quality choice and estimate the model using panel microdata on gasoline purchases. ... View more
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