Summary
We have studied the choice of mode of payment from a 1987 Dutch household survey. The institutional arrangements of a transaction are a major determinant for the mode of payment, and so is the amount involved. A 10% increase in the sum paid usually leads to a reduction of about 1.3% to 2.3% in the incidence of currency use.
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Based on ‘De keuze van een betaalmiddel’ (The Choice of Mode of Payment), (SEO, Amsterdam, 1989), which reports research commissioned by the Postbank, Amsterdam.
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Mot, E.S., Cramer, J.S. Mode of payment in household expenditures. De Economist 140, 488–500 (1992). https://doi.org/10.1007/BF01725241
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DOI: https://doi.org/10.1007/BF01725241