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on Payment Systems and Financial Technology |
| By: | Arango, Carlos; Bouhdaoui, Yassine; Bounie, David; Eschelbach, Martina; Hernández, Lola |
| Abstract: | Despite various payment innovations, today, cash is still heavily used to pay for low-value purchases. This paper proposes a simulation model based on two optimal cash management and payment policies in the payments economics literature to explain cash usage. First, cash is preferred to other payment instruments whenever consumers have enough balances at hand. Second, it is optimal for consumers to hold a stock of cash for precautionary reasons. Exploiting survey payment diaries from Canada, France, Germany and the Netherlands, the results of the simulations show that both optimal policies are well suited to understand the high shares of low-value cash payments in Canada, France and Germany. Yet, they do not perform as well in the case of the Netherlands, overestimating the share of low-value cash payments. We discuss how the differences in payment markets across countries may explain the limitations of the two optimal policies. JEL Classification: C61, E41, E47 |
| Keywords: | cash management, international comparison, payment choices |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20161874&r=pay |
| By: | Irina Andrievskaya (National Research University Higher School); Maria Semenova (National Research University Higher School) |
| Abstract: | There are many studies revealing factors which influence the demand for financial services. However genetic features, determining the individual’s overall postnatal behaviour, have not been studied within this context. This paper extends the previous literature by studying to what extent individual biological endowment, proxied by prenatal testosterone (PT) (measured by the 2D:4D ratio), can determine personal demand for bank services and insurance. We use data from the Russian Longitudinal Monitoring Survey of 2011–2012. Our findings confirm the existence of the link between inherent biological variation and financial inclusion: PT affects the use of bank cards, intention to take out a loan, having a bank deposit and the consumption of insurance products |
| Keywords: | prenatal testosterone, 2D:4D ratio, financial inclusion, household, RLMS, Russia |
| JEL: | D14 D81 G21 G22 O16 P34 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:52/fe/2016&r=pay |
| By: | Kirchgässner, Gebhard |
| Abstract: | As long as it is employed cautiously enough, the model approach is a useful tool to estimate simultaneously the size and the development of the shadow economy in several countries. However, a second method is necessary to calibrate the model. The currency demand approach can lead to highly implausible results; the size of the shadow economy might be largely overestimated. An alternative is the survey method. For real tests of whether a variable has an impact, procedures are necessary that do not use the same variables as those used to construct the indicator. Thus, to make progress in analysing the shadow economy, the model approach has a role to play, but it has to be complemented by other methods employing different data. The currency demand approach cannot be used as long as it employs the same variables for its constructions |
| Keywords: | Shadow Economy, Model Approach, Currency Demand Approach, Survey Methods, Tax Burden, Testing, Plausibility Tests |
| JEL: | O17 C18 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2016:03&r=pay |