An Empirical Analysis of the Use of Money Orders, the Payment System of the Poor
Financial Services Review, Volume 3, Issue 1, Pages 75-81, 1993
Posted: 21 May 2020 Last revised: 21 May 2020
Date Written: 1993
Abstract
Although money orders have been available in the United States since the Civil War, until the mid 1970's and the failure of United States Navigation Company and Universal Money Orders, there had been little analysis of the money order market. This study empirically investigates the determinants of money order usage by households. The results of the study, which utilizes two large national samples, indicate that money orders are clearly an inferior good which have a high probability of being purchased by a low income, young, ethnic minority.
Keywords: Payment System, Unbanked, Money Orders
Suggested Citation: Suggested Citation