Abstract

http://ssrn.com/abstract=899120
 
 

References (33)



 
 

Citations (5)



 


 



Paper or Plastic? The Effect of Time on the Use of Check and Debit Cards at Grocery Stores


Elizabeth Klee


Board of Governors of the Federal Reserve System

February 2006

FEDS Working Paper No. 2006-02

Abstract:     
Time is a significant cost of conducting transactions, and theoretical models predict that transactions costs significantly affect the type of media of exchange buyers use. However, there is little empirical work documenting the magnitude of this effect. This paper uses grocery store scanner data to examine how time affects consumer choices of checks and debit cards. On average, check transactions take thirty percent longer than debit card transactions. This time difference is a significant factor in the choice to use a debit card over a check and offers empirical evidence for transactions costs affecting the use of media of exchange.

Number of Pages in PDF File: 48

Keywords: Payment systems, consumer behavior, checks, debit cards

JEL Classification: G20, D12, E41

working papers series


Download This Paper

Date posted: May 2, 2006  

Suggested Citation

Klee, Elizabeth, Paper or Plastic? The Effect of Time on the Use of Check and Debit Cards at Grocery Stores (February 2006). FEDS Working Paper No. 2006-02. Available at SSRN: http://ssrn.com/abstract=899120 or http://dx.doi.org/10.2139/ssrn.899120

Contact Information

Elizabeth Klee (Contact Author)
Board of Governors of the Federal Reserve System ( email )
20th and Constitution Ave NW
Washington, DC 20551
United States
Feedback to SSRN


Paper statistics
Abstract Views: 652
Downloads: 188
Download Rank: 93,610
References:  33
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.234 seconds