This research note empirically investigates whether cash can prevent consumers from making needless purchases in unexpected shopping situations. Cash can have a disciplinary effect on short-term consumption because it imposes a strong temporary budget constraint and also reinforces the pain of...

This paper empirically investigates whether individuals withhold a certain amount of cash for precautionary reasons at the point-of-sale (POS) in order to be able to cover future transactions that might have to be paid for in cash. Such behaviour is costly for consumers because it imposes...

Standard transaction cost arguments can only partially explain why the share of cash transactions is still high in many countries. This paper shows that consumers’ desire to monitor liquidity is one of the reasons. Consumers make use of a distinctive feature of cash – a glance into one’s...

Niemand hat die Absicht, das Bargeld abzuschaffen! Doch trotz aller Dementis aus Berlin, Frankfurt und Brüssel scheint die sukzessive Abschaffung des Bargelds weiter voranzuschreiten. Das beschlossene Aus für den 500-Euro-Schein sowie das Drängen der Politik auf eine europaweite Obergrenze...