Can cash hold its own? International comparisons: Theory and evidence
AbstractA number of papers predict the imminent demise of currency use in transactions while some make a case for its continued use due to its distinctive feature of anonymity. Notwithstanding the latter, this paper shows on both theoretical and empirical grounds, that cash use is sustainable for the foreseeable future because of the cost competitiveness of ATM networked cash to the consumer relative to electronic POS card substitutes. Indeed, since the mid-1990s, Finland, Canada and France which are countries in the vanguard of EFTPOS development, have experienced a resurgence of ATM cash use as measured by its expenditure share.
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Bibliographic InfoPaper provided by University of Essex, Department of Economics in its series Economics Discussion Papers with number 536.
Date of creation: 09 Apr 2002
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Postal: Discussion Papers Administrator, Department of Economics, University of Essex, Wivenhoe Park, Colchester CO4 3SQ, U.K.
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