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Why are payment habits so heterogeneous across and within countries? Evidence from European countries and Italian regions

Author

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  • Guerino Ardizzi

    () (Bank of Italy)

  • Eleonora Iachini

    () (Bank of Italy)

Abstract

The aim of this work is to arrive at a better understanding of the underlying reasons for the slow adoption of electronic payment instruments in Italy. Our findings indicate that a pivotal role in explaining Italy�s lag in abandoning cash is played by development factors, such as innovative capability and income per capita. Surprisingly, although the shadow economy is important, it is not decisive in explaining the limited use of electronic retail payment instruments.

Suggested Citation

  • Guerino Ardizzi & Eleonora Iachini, 2013. "Why are payment habits so heterogeneous across and within countries? Evidence from European countries and Italian regions," Questioni di Economia e Finanza (Occasional Papers) 144, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_144_13
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    File URL: http://www.bancaditalia.it/pubblicazioni/qef/2013-0144/QEF_144.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ardizzi, Guerino, 2012. "The Impact of the Microchip on the Card Frauds," MPRA Paper 41435, University Library of Munich, Germany.
    2. Vania Silva & Esmeralda Ramalho & Carlos Vieira, 2016. "Is EMV adoption changing card payments? Evidence from the European Union," CEFAGE-UE Working Papers 2016_05, University of Evora, CEFAGE-UE (Portugal).
    3. Łukasz Goczek & Bartosz Witkowski, 2015. "Card Payments in Poland: Determinants and Prospects," Gospodarka Narodowa, Warsaw School of Economics, issue 3, pages 159-177.

    More about this item

    Keywords

    payment instruments; cash demand; financial inclusion; retail payments;

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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