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 …

Digital payments are growing rapidly, and the use of cash seems to be declining, at least in advanced economies in … Europe and the U.S. However, the literature on payment systems provides an interesting perspective- cash, or currency, when … are also significant across a group of heterogeneous countries. Interest rates are found to affect the demand for cash …

compared to a cash-only economy, and a Lucas (2000) shopping economy without leisure, as special cases. The paper estimates the …