Arbeitspapier
Cash management and payment choices: a simulation model with international comparisons
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.
- ISBN
-
978-952-323-074-3
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 22/2015
- Klassifikation
-
Wirtschaft
Optimization Techniques; Programming Models; Dynamic Analysis
Demand for Money
Money and Interest Rates: Forecasting and Simulation: Models and Applications
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Arango, Carlos
Bouhdaoui, Yassine
Bounie, David
Eschelbach, Martina
Hernandez, Lola
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Arango, Carlos
- Bouhdaoui, Yassine
- Bounie, David
- Eschelbach, Martina
- Hernandez, Lola
- Bank of Finland
Entstanden
- 2015
Ähnliche Objekte (12)
Less cash on the counter: forecasting Finnish payment preferences
Substitution on noncash payment instruments for cash in Europe
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Re-engineering payment systems for the E-world
The mixed oligopoly of cross-border payment systems
Cash management and payment choices: a simulation model with international comparisons
Cash management and payment choices: A simulation model with international comparisons
Cash management and payment choices: A simulation model with international comparisons
Cash management and payment choices : a simulation model with international comparisons
Integrating European retail payment systems: some economics of SEPA
Assessing effects of price regulation in retail payment systems
Less cash on the counter: forecasting Finnish payment preferences
Substitution on noncash payment instruments for cash in Europe
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Re-engineering payment systems for the E-world
The mixed oligopoly of cross-border payment systems
Cash management and payment choices: a simulation model with international comparisons
Cash management and payment choices: A simulation model with international comparisons
Cash management and payment choices: A simulation model with international comparisons
Cash management and payment choices : a simulation model with international comparisons
Integrating European retail payment systems: some economics of SEPA
Assessing effects of price regulation in retail payment systems
Less cash on the counter: forecasting Finnish payment preferences
Substitution on noncash payment instruments for cash in Europe
Simulation analyses and stress testing of payment networks
Competition and regulation in European retail payment systems
Re-engineering payment systems for the E-world
The mixed oligopoly of cross-border payment systems
Cash management and payment choices: a simulation model with international comparisons
Cash management and payment choices: A simulation model with international comparisons
Cash management and payment choices: A simulation model with international comparisons
Cash management and payment choices : a simulation model with international comparisons
Integrating European retail payment systems: some economics of SEPA