Choosing How to Pay: The Influence of Home Country Habits

Kosse, Anneke; Jansen, David‐Jan

doi:10.2139/ssrn.1977192

Cited by 5 publications

(5 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…First, it is consistent with the data as it rationalizes the use of both cash and credit. Second, the policy aligns with the empirical observation that households are more likely to use credit when their cash balances are running low, a fact that is amply documented in Arango et al (2011) , Kosse and Jansen (2012) , Huynh et al (2014) and Arango et al (2012) . Our model also provides a simple interpretation of the evidence in Wang and Wolman (2016) which shows that the share of transactions paid with cash declines steadily, from the 1st day until the 15th day of the month, with the share of debit purchases being an almost exact mirror image of this pattern (see their Section 5 ).…”

Section: Model Predictions About Observable Momentssupporting

confidence: 54%

Cash Burns: An Inventory Model with a Cash-Credit Choice

Álvarez

Lippi

2017

SSRN Journal

View full text Add to dashboard Cite

A dynamic cash-management model is analysed where agents choose whether to pay with cash or credit at every point in time. In the model credit usage depends on the current stock of cash, a novel result that matches recent micro evidence on households' payment choices. The optimality of such a decision rule is novel and cannot be obtained by models where cash-credit decisions are made at the "beginning" of each period. We discuss how to use the model to account for cross country-evidence on the intensity of credit usage and for several statistics on the size and frequency of cash withdrawals. The model is used to assess the household's welfare cost of phasing out cash.

show abstract

Section: Model Predictions About Observable Momentssupporting

confidence: 54%

Cash Burns: An Inventory Model with a Cash-Credit Choice

Álvarez

Lippi

2017

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…However, as transaction value increases the marginal cost of paying with cash goes up reducing the difference in probabilities between high and low cash holders." Kosse and Jansen (2012) also report significant positive effect of cash holdings at the beginning of the diary in a Tobit regression on whether a purchase was paid in cash. They use a diary with purchases for one day for 2200 individuals in the Netherlands containing similar information as the one used for Canadian consumers.…”

Section: Empirical Evidencementioning

confidence: 87%

Cash burns: An inventory model with a cash-credit choice

Álvarez

Lippi

2017

Journal of Monetary Economics

View full text Add to dashboard Cite

An earlier version of the paper circulated under the name: "A dynamic cash management and payment choice model". We benefited from the comments of the participants to "Consumer Finances and Payment Diaries: Theory and Empirics", Ottawa, Canada, 18-19 October 2012. Philip Barrett provided excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w21110.ack NBER working papers are circulated for discussion and comment purposes. They have not been peerreviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

show abstract

“…This may have an effect on migrants' payment habits in the Netherlands (see Kosse and Jansen, 2013) as well as on their remittance behaviour. Several indicators suggest that the use of electronic payment instruments is lowest in Morocco, followed by Indonesia and Turkey.…”

Section: Characteristics Of Major Home-countriesmentioning

confidence: 99%

“…We also used various survey techniques, such as online surveys and face-to-face or paper-based interviews, to minimise non-response. For a detailed description of the sampling process and the survey methods used, see Kosse and Jansen (2013).…”

mentioning

confidence: 99%

Migrants' Choice of Remittance Channel: Do General Payment Habits Play a Role?

Kosse

Vermeulen

2013

SSRN Journal

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Retail payments at a crossroads: economics, strategies and future policies This paper was submitted and accepted for the bi-annual retail payments conference titled "Retail payments at a crossroads: economics, strategies and future policies" organised by the European Central Bank (ECB) and the Banque de France (BdF), on 21 and 22 October 2013 in Paris. The aim of the conference was to bring together academics, regulators and market participants to discuss possible developments and dynamics that will shape the future retail payments landscape. Terms of use: Documents in EconStor mayRetail payments provide a very important, yet not the most visible, infrastructure for the operation of the real economy. The way economic actors pay is not only important from a theoretical point of view but also from a policy perspective as the costs for providing payment services are substantial in most countries. As we are witnessing a transformation in these markets from traditional paper-based payment instruments towards electronic means of payments, the interaction between market forces and regulatory initiatives continues to be a determining factor for the future. This interaction, and the possible policy conclusions stemming from it, was the main theme of this conference.The selection and refereeing process of this paper has been carried out by the conference organisational team composed of experts from both organising institutions. As the conference was organised with a focus on the key issues above, papers were selected not only based on their standalone quality but also considering the relevance of the research subject to the themes of the event. Following the conference the selected papers have been asked to be revised according to the discussants assigned to the respective paper.The paper is released in order to make the working papers and accompanying research submitted to the conference publicly available. Non-technical summaryThis paper studies the determinants in migrants' choice of payment channel when sending money to relatives abroad. Migrant remittances are an important source of external finance for many countries.In 2012, globally-recorded remittance flows to developing countries reached USD 400 billion (World Bank, 2012). However, the actual amount of remittances sent is probably significantly larger, as a large but unknown share of remittances are transferred through unrecorded informal channels, such as money brought home on return and transfers throu...

show abstract

Choosing How to Pay: The Influence of Home Country Habits

Cited by 5 publications

References 49 publications

Cash Burns: An Inventory Model with a Cash-Credit Choice

Cash Burns: An Inventory Model with a Cash-Credit Choice

Cash burns: An inventory model with a cash-credit choice

Migrants' Choice of Remittance Channel: Do General Payment Habits Play a Role?

Contact Info

Product

Resources

About