This is What's in Your Wallet... And How You Use It

30 Pages Posted: 4 Jul 2014

See all articles by Tamas Briglevics

Tamas Briglevics

Boston College; Federal Reserve Bank of Boston

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Date Written: April 30, 2014

Abstract

Data from the 2012 Diary of Consumer Payment Choice (DCPC) shows substantial changes in payment instrument use of U.S. households compared to the results in Klee (2008) (which were based on data from 2001): Checks have virtually disappeared from purchase transactions, while still play a role in bill payments. Cash, on the other hand, still plays a large role for low-value transactions. The diary data is used to jointly analyse payment instrument use and consumers' demand for liquid assets. Preliminary results indicate that payment instrument choice is an integral part of consumers' cash management practices and hence cash demand; therefore, contrary to simple Baumol (1952)-Tobin (1956) models, they should be analysed together.

Keywords: payment instrument choice, money demand, cash withdrawals, payment cards, Diary of Consumer Payment Choice

JEL Classification: E41, E42

Suggested Citation

Briglevics, Tamas and Schuh, Scott, This is What's in Your Wallet... And How You Use It (April 30, 2014). ECB Working Paper No. 1684. Available at SSRN: https://ssrn.com/abstract=2431322

Tamas Briglevics (Contact Author)

Boston College ( email )

Beacon Street
Chestnut Hill, MA 02167
United States

Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

Scott Schuh

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Ave.
Boston, MA 02210
United States
617-973-3941 (Phone)
617-619-7541 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
30
Abstract Views
1,576
PlumX Metrics