U.S. consumers' demand for cash is estimated with new panel micro data for 2008-2010 using econometric methodology similar to Mulligan and Sala-i-Martin (2000); Attanasio, Guiso, and Jappelli (2002); and Lippi and Secchi (2009). We extend the Baumol-Tobin model to allow for credit card payments...

There is much in our increasingly digitized economies to suggest that the use of cash should fall. However, in almost all countries, it is constant or rising with a few notable exceptions. Sweden, in particular, displays a divergent development. In this paper, we explore the drivers behind this...

This paper explores the impact of contactless payment on consumers' demand for cash at an early stage of diffusion. The specific devices that are investigated are debit and credit cards, in which the feature is embedded. A novel balanced panel dataset drawn from representative surveys on...

Models of money demand, in the Baumol (1952)-Tobin (1956) tradition, describe optimal cash management policy in terms of when and how much cash to withdraw, an (s, S) policy. However, today, a vast array of instruments can be used to make payments, opening additional ways to control cash...

A transactions model of the demand for multiple media of exchange is developed. Some results are expected, and others are both new and surprising. There are both extensive and intensive margins to currency substitution, and inflation may affect the two margins differently, leading to subtle...

Much intellectual energy has been devoted over many decades to the concept of money "demand" and its significance for monetary policy. It is obvious that the non-bank private sector (NBPS) does hold non-interest-bearing money (incongruously called money "demand") for specific purposes (in the...