A Model of Demand for Cash and Deposits

39 Pages Posted: 5 Jun 2007

See all articles by David Bounie

David Bounie

Télécom Paris

Nicolas Houy

University of Cergy-Pontoise - THEMA

Date Written: June 2007


In a recent contribution, Bounie et al. (2007a) proposed a simple alternative payment decision rule based on a cash holding model (CH model) that showed more efficiency at replicating the observed data than standard transaction size based models (TS models) à la Whitesell (1989). In this paper, we provide an axiomatization for a class of CH models.

Keywords: Demand for Money, Payment Instruments

JEL Classification: E41, E17

Suggested Citation

Bounie, David and Houy, Nicolas, A Model of Demand for Cash and Deposits (June 2007). Available at SSRN: https://ssrn.com/abstract=991361 or http://dx.doi.org/10.2139/ssrn.991361

David Bounie

Télécom Paris ( email )

19 Place Marguerite Perey
Palaiseau, 91120

Nicolas Houy (Contact Author)

University of Cergy-Pontoise - THEMA ( email )

33 boulevard du port
F-95011 Cergy-Pontoise Cedex, 95011

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