Briglevics, Tamás; Schuh, Scott - 2013 - This version: December 2013
the Baumol-Tobin model to allow for credit card payments and revolving debt, as in Sastry (1970). With interest rates near … credit cards to borrow (with revolving debt) is interest inelastic. These findings may have aggregate implications for the … zero, cash demand by consumers using credit cards for convenience (without revolving debt) has the same small, negative …
