Debit card and demand for cash
Document type :
Article dans une revue scientifique: Article original
Title :
Debit card and demand for cash
Author(s) :
Bounie, David [Auteur]
Département Sciences Economiques et Sociales [SES]
Institut interdisciplinaire de l’innovation de Telecom Paris [I3 SES]
François, Abel [Auteur]
Lille économie management - UMR 9221 [LEM]
Patrick, Waelbroeck [Auteur]
Département Sciences Economiques et Sociales [SES]
Institut interdisciplinaire de l’innovation de Telecom Paris [I3 SES]
Département Sciences Economiques et Sociales [SES]
Institut interdisciplinaire de l’innovation de Telecom Paris [I3 SES]
François, Abel [Auteur]
Lille économie management - UMR 9221 [LEM]
Patrick, Waelbroeck [Auteur]
Département Sciences Economiques et Sociales [SES]
Institut interdisciplinaire de l’innovation de Telecom Paris [I3 SES]
Journal title :
Journal of Banking and Finance
Pages :
55--66
Publisher :
Elsevier
Publication date :
2016-12
ISSN :
0378-4266
English keyword(s) :
Demand for cash
Debit card
Endogenous ordinal probit
Debit card
Endogenous ordinal probit
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
Despite the growing importance of the debit card in most developed countries, there are relatively few academic studies that analyze the impact of such evolution on the demand for cash. Beyond data availability, this ...
Show more >Despite the growing importance of the debit card in most developed countries, there are relatively few academic studies that analyze the impact of such evolution on the demand for cash. Beyond data availability, this research is complicated by the fact that the debit card provides two services for consumers - cash withdrawal and payment - that have contrasting effects on cash holdings and cash usage. Using micro-level data, we estimate the impacts of both services on the demand for cash by comparing the cash holdings and cash usage of three populations, namely non-cardholders, ATM-only cardholders, and debit cardholders. Controlling for various individual and network characteristics as well as a possible endogeneity issue, we find that the negative effect of the payment service on the demand for cash dominates the positive effect of the cash withdrawal service resulting in an overall negative impact of the debit card on the demand for cash.Show less >
Show more >Despite the growing importance of the debit card in most developed countries, there are relatively few academic studies that analyze the impact of such evolution on the demand for cash. Beyond data availability, this research is complicated by the fact that the debit card provides two services for consumers - cash withdrawal and payment - that have contrasting effects on cash holdings and cash usage. Using micro-level data, we estimate the impacts of both services on the demand for cash by comparing the cash holdings and cash usage of three populations, namely non-cardholders, ATM-only cardholders, and debit cardholders. Controlling for various individual and network characteristics as well as a possible endogeneity issue, we find that the negative effect of the payment service on the demand for cash dominates the positive effect of the cash withdrawal service resulting in an overall negative impact of the debit card on the demand for cash.Show less >
Language :
Anglais
Peer reviewed article :
Oui
Audience :
Internationale
Popular science :
Non
Collections :
Source :