Experimental economics in money illusion : a comparison of two independent studies

Abstract

Money illusion is a concept developed by Irving Fisher in 1927. This is defined as "the failure to perceive that the dollar or any other unit of money expands or shrinks in value."Specific objectives were: 1) to identify and determine whether money illusion is persent among the students at Ball State University; 2) to analyze the influence of money illusion on the students at Ball State University; and 3) to compare the findings of the Lebanon Valley College study with that of the Ball State University study.Personal interviews of students enrolled in various colleges on Ball State University campus were conducted. The data collected was analysed to achieve the objectives of this study.