Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data

54 Pages Posted: 6 Jun 2014

See all articles by John Bagnall

John Bagnall

Reserve Bank of Australia

David Bounie

Telecom ParisTech

Kim P. Huynh

Government of Canada - Bank of Canada; Indiana University Bloomington - Department of Economics

Anneke Kosse

De Nederlandsche Bank

Tobias Schmidt

Deutsche Bundesbank - Research Center

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Helmut Stix

Oesterreichische Nationalbank - Economic Studies Division

Multiple version iconThere are 3 versions of this paper

Date Written: April 23, 2014

Abstract

We measure consumers’ use of cash by harmonizing payment diary surveys from seven countries. The seven diary surveys were conducted in 2009 (Canada), 2010 (Australia), 2011 (Austria, France, Germany and the Netherlands), and 2012 (the United States). Our paper finds cross-country differences – for example, the level of cash usage differs across countries. Cash has not disappeared as a payment instrument, especially for low-value transactions. We also find that the use of cash is strongly correlated with transaction size, demographics, and point-of-sale characteristics such as merchant card acceptance and venue.

Keywords: Money Demand, Payment Systems, Harmonization

JEL Classification: E41, D12, E58

Suggested Citation

Bagnall, John and Bounie, David and Huynh, Kim P. and Kosse, Anneke and Schmidt, Tobias and Schuh, Scott and Stix, Helmut, Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data (April 23, 2014). De Nederlandsche Bank Working Paper No. 422. Available at SSRN: https://ssrn.com/abstract=2446786 or http://dx.doi.org/10.2139/ssrn.2446786

John Bagnall (Contact Author)

Reserve Bank of Australia ( email )

65, Martin Place
Sydney, NSW 2000
Australia

David Bounie

Telecom ParisTech ( email )

46 rue Barrault
F-75634 Paris, Cedex 13
France

Kim P. Huynh

Government of Canada - Bank of Canada ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada

Indiana University Bloomington - Department of Economics ( email )

Wylie Hall
Bloomington, IN 47405-6620
United States

Anneke Kosse

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Tobias Schmidt

Deutsche Bundesbank - Research Center ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

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)

Helmut Stix

Oesterreichische Nationalbank - Economic Studies Division ( email )

Otto-Wagner Platz 3
POB 61
Vienna 1011
Austria

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