Arbeitspapier

Using cash to monitor liquidity: Implications for payments, currency demand and withdrawal behavior

zu Verbundenen Objekten

Standard transaction cost arguments can only partially explain why the share of cash transactions is still high in many countries. This paper shows that consumers' desire to monitor liquidity is one of the reasons. Consumers make use of a distinctive feature of cash - a glance into one's pocket provides a signal for both the remaining budget as well as the level of past expenses. We propose a theoretical framework which incorporates this feature of cash, and derives implications not only for cash usage as such but also for a broader set of paymentrelated activities. Survey data from Germany on consumers' payment and withdrawal patterns are used to test these implications empirically. The data are consistent with all theoretical predictions: consumers who need to keep control over their remaining liquidity and who have elevated costs of information processing and storage will conduct a larger percentage of their payments using cash, hold fewer non-cash payment instruments, withdraw less often and hold larger cash balances than other consumers. Such consumers also use payment cards for some transactions; they switch to non-cash payment instruments only at higher transaction values than other consumers, however. Our model provides an explanation of why cash usage has declined only slowly in some countries despite broad diffusion of non-cash means of payment.

Sprache
Englisch
ISBN
978-3-86558-747-3

Erschienen in
Series: Discussion Paper Series 1 ; No. 2011,22

Klassifikation
Wirtschaft
Demand for Money
Central Banks and Their Policies
Consumer Economics: Empirical Analysis
Thema
payment behavior
payment instruments
withdrawal behavior
payment cards
payment innovation
cash usage
currency demand
survey data

Ereignis
Geistige Schöpfung
(wer)
von Kalckreuth, Ulf
Schmidt, Tobias
Stix, Helmut
Ereignis
Veröffentlichung
(wer)
Deutsche Bundesbank
(wo)
Frankfurt a. M.
(wann)
2011

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Original beim Datenpartner anzeigen

Objekttyp

  • Arbeitspapier

Beteiligte

  • von Kalckreuth, Ulf
  • Schmidt, Tobias
  • Stix, Helmut
  • Deutsche Bundesbank

Entstanden

  • 2011

Ähnliche Objekte (12)

Using cash to monitor liquidity - implications for payments, currency demand and withdrawal behavior

Arbeitspapier

Using cash to monitor liquidity - implications for payments, currency demand and withdrawal behavior

Abschrift einer gedruckten Zwickauer Chronik aus dem Jahr 1656

Handschriften

Abschrift einer gedruckten Zwickauer Chronik aus dem Jahr 1656

Consumers’ Recording Behaviour in Payment Diaries – Empirical Evidence from Germany

Journal article | Zeitschriftenartikel

Consumers’ Recording Behaviour in Payment Diaries – Empirical Evidence from Germany

Nachweis, Isolierung und Charakterisierung eines fussinhibierenden Morphogens in Hydra

Hochschulschrift

Nachweis, Isolierung und Charakterisierung eines fussinhibierenden Morphogens in Hydra

Consumers’ Recording Behaviour in Payment Diaries – Empirical Evidence from Germany

Consumers’ Recording Behaviour in Payment Diaries – Empirical Evidence from Germany

Using cash to monitor liquidity - implications for payments, currency demand and withdrawal behavior

Using cash to monitor liquidity - implications for payments, currency demand and withdrawal behavior

Grundlagen einer Systemtheorie des Finanzsektors : Vorstudien zur Erschließung der Theorie sozialer Systeme als interdisziplinäre Integrationsperspektive

Hochschulschrift

Grundlagen einer Systemtheorie des Finanzsektors : Vorstudien zur Erschließung der Theorie sozialer Systeme als interdisziplinäre Integrationsperspektive

Echo, Oder: Rechtmäßige Beantwortung Auff die von denen Infamen Schwedischen Ehren-Dieben, Wider Se. Königliche Majest. in Pohlen und Churfürstl. Durchl. zu Sachsen, insonderheit wider den Hn. Geheimbden Rath v. Patkul, Ausgestreuete unverschämte Pasquillen und andere verübte brutale Proceduren : samt einer kurtzen Replica Pro Iustitia Armorum Regie Maiestatis Poloniae contra Sueciam

Monografie

Echo, Oder: Rechtmäßige Beantwortung Auff die von denen Infamen Schwedischen Ehren-Dieben, Wider Se. Königliche Majest. in Pohlen und Churfürstl. Durchl. zu Sachsen, insonderheit wider den Hn. Geheimbden Rath v. Patkul, Ausgestreuete unverschämte Pasquillen und andere verübte brutale Proceduren : samt einer kurtzen Replica Pro Iustitia Armorum Regie Maiestatis Poloniae contra Sueciam

Mechanische Eigenschaften und Mikrostruktur epitaktischer Ag-Ni-Multilagenschichten

Hochschulschrift

Mechanische Eigenschaften und Mikrostruktur epitaktischer Ag-Ni-Multilagenschichten

Echo sive Iustissima Responsio ad detestabiles atque execrandas plane adversus Sacram Regiam Poloniarum Maiestatem Electoremq[ue] Saxoniae, praecipue autem adversus Consiliarium Intimum Dominum de Patkul, ab infamibus ac in desperatam malitiam induratis Balatronibus Suecicis, Libellis famosis hinc & inde disseminatas calumnias, aliasq[ue] plus quam barbaras & inter cultiores gentes inauditas criminationes : adiecta brevi Replica pro Iustitia Armorum Regiae Maiestatis Poloniae, contra Sueciam

Monografie

Echo sive Iustissima Responsio ad detestabiles atque execrandas plane adversus Sacram Regiam Poloniarum Maiestatem Electoremq[ue] Saxoniae, praecipue autem adversus Consiliarium Intimum Dominum de Patkul, ab infamibus ac in desperatam malitiam induratis Balatronibus Suecicis, Libellis famosis hinc & inde disseminatas calumnias, aliasq[ue] plus quam barbaras & inter cultiores gentes inauditas criminationes : adiecta brevi Replica pro Iustitia Armorum Regiae Maiestatis Poloniae, contra Sueciam

Fatigue in payment diaries - empirical evidence from Germany

Arbeitspapier

Fatigue in payment diaries - empirical evidence from Germany

Knowledge Flows and R&D Co-operation: Firm-level Evidence from Germany

Arbeitspapier

Knowledge Flows and R&D Co-operation: Firm-level Evidence from Germany

Verbundene Objekte