We analyze for the first time cash holdings of private households in all euro area countries from 2002 to 2019 within a … panel cointegration framework. Besides the traditional determinants of cash demand like transactions balances and … opportunity costs, we concentrate on cashless payments media as substitutes to cash payments and the role of the shadow economy …

cash holding. To do this, we use the new data for Poland and review original datasets from Bates et al. [2009] for the U ….S. We find no trace of a trend for Poland and believe most trends for the U.S. come from the cash piling toward the end of … the sample period. At best, the U.S. trend applies merely to small firms. We believe cash holding is a period …

. Nevertheless, the use of cash remains significant. We hypothesize that the lack of card acceptance at the point of sale is a key … reason why cash continues to play an important role. We formulate a simple inventory model that predicts that the level of … cash demand falls with an increase in card acceptance. We use detailed payment diary data from Austrian and Canadian …