Title
The Tangibility Effect of Paper Money and Coins in an Investment Experiment
Abstract
In this study, we conducted a simple self-control investment experiment to investigate the tangibility effect of paper money and coin. We found that, compared to the non-cash condition, physically holding either paper money or coin made subjects significantly less likely to participate in the investment experiment and those who did participate invested significantly less. In addition, an aversion towards coins in small investments and a gender difference in investment decision were found.
Keywords
Tangibility effect, Paper money, Coin, Experiment
JEL Classification
C91, D03
Inquiries
Junyi SHEN
Research Institute for Economics and Business Administration,
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059
and
School of Economics, Shanghai University, China
Hiromasa TAKAHASHI
Faculty of International Studies, Hiroshima City University
Research Institute for Economics and Business Administration,
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059
and
School of Economics, Shanghai University, China
Hiromasa TAKAHASHI
Faculty of International Studies, Hiroshima City University