The Dilemma of Dirty Money

Money is generally seen as good, but what about when it is morally tainted? Does this affect whether people want money or how they would spend it? In this article, we review a nascent literature on “dirty money” and then organize these findings using a framework that formalizes the idea that dirty money creates a valuation conflict because it is both “good” (the money part) and “bad” (the dirty part). To show how this conflict is adjudicated, we...