Why are (some) consumers (finally) writing fewer checks? The role of payment characteristics

Journal of Banking and Finance

Volumn 34, Issue 8, 2010, Pages 1745-1758

  Schuh, Scott ^a   Stavins, Joanna ^a  

^a FEDERAL RESERVE BANK OF BOSTON   (United States)

Author keywords

Checks; Money demand; Payment characteristics; Payment instruments

Indexed keywords

EID: 77953507337     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2009.09.018     Document Type: Article

References (56)

1. AARP, 2007. Consumer Payment Study.
2. Amromin, E., Chakravorti, S., 2007. Debit card and cash usage: A cross-country analysis. Federal Reserve Bank of Chicago Working Paper, WP-07-04.
3. Anguelov C.E., Hilgert M.A., Hogarth J.M. US consumers and electronic banking, 1995-2003. Federal Reserve Bulletin 2004, 90:1-18.
4. Attanasio O., Guiso L., Jappelli T. The demand for money, financial innovation, and the welfare cost of inflation: An analysis with household data. Journal of Political Economy 2002, 110:318-351.
5. Barnett W.A., Fisher D., Serletis A. Consumer theory and the demand for money. Journal of Economic Literature 1992, 30:2086-2119.
6. Baumol W. The transactions demand for cash. Quarterly Journal of Economics 1952, 67:545-556.
7. Benton, M., Blair, K., Crowe, M., Schuh, S., 2007. The Boston fed study of consumer behavior and payment choice: A survey of Federal Reserve System employees. Federal Reserve Bank of Boston, Public Policy Discussion Paper No. 07-1.
8. Bertaut C.C., Haliassos M. Credit cards: Facts and theories. The Economics of Consumer Credit 2005, MIT Press, Cambridge, MA and London. G. Bertola, R. Disney, C. Grant (Eds.).
9. Bolt W., Jonker N., Van Renselaar C. Incentives at the counter: An empirical analysis of surcharging card payments and payment behaviour in the Netherlands. Journal of Banking and Finance 2010, 34:1738-1744.
10. Borzekowski R., Kiser E. The choice at the checkout: Quantifying demand across payment instruments. International Journal of Industrial Organization 2007, 26:889-902.
11. Borzekowski R., Kiser E., Ahmed S. Consumers' use of debit cards: Patterns, preferences, and price response. Journal of Money, Credit and Banking 2008, 40:149-172.
12. Carow K.A., Staten M.E. Debit, credit, or cash: Survey evidence on gasoline purchases. Journal of Economics and Business 1999, 51:409-421.
13. Carten, M., Littman, D., Schuh S., Stavins. J., 2007. Consumer behavior and payment choice: 2006 conference summary. Federal Reserve Bank of Boston, Public Policy Discussion Paper No. 07-4.
14. Ching, A., Hayashi, F., 2008. Payment card rewards programs and consumer payment choice. Working Paper, University of Toronto.
15. Dove Consulting, 2005. 2005-2006 Study of Consumer Payment Preferences.
16. Dubin J.A., McFadden D.L. An econometric analysis of residential electric appliance holdings and consumption. Econometrica 1984, 52:345-362.
17. Duca J.V., Whitesell W.C. Credit cards and money demand: A cross-sectional study. Journal of Money, Credit, and Banking 1995, 27:604-623.
18. Federal Reserve Bank of Atlanta, 1981. A Quantitative Description of the Check Collection System: A Report of Research Findings on the Check Collection System.
19. Federal Reserve Bank of Atlanta, 1983. Special issue: Displacing the check. Federal Reserve Bank of Atlanta Economic Review 68.
20. Federal Reserve Bank of Philadelphia Payment Cards Center, 2009. Consumer Payments Bibliography.
21. Fusaro, M.A., 2008. Debit vs. credit: A model of self-control with evidence from checking accounts. Working Paper, East Carolina University.
22. Garcia Swartz D.D., Hahn R.W., Layne-Farrar A. The move toward a cashless society: A closer look at payment instrument economics. Review of Network Economics 2006, 5:175-198.
23. Gerdes G.R., Walton J.K. The use of checks and other noncash payment instruments in the United States. Federal Reserve Bulletin 2002, 88:360-374.
24. Gerdes G.R., Liu M.X., Parke D.W., Walton J.K. Trends in the use of payment instruments in the United States. Federal Reserve Bulletin 2005, 91:180-201.
25. Gerdes G.R. Recent payment trends in the United States. Federal Reserve Bulletin 2008, 94:A75-A106.
26. Greene W.H. Econometric Analysis 1997, Prentice-Hall Inc., Upper Saddle River, NJ. third ed.
27. Guibourg G., Segendorff B. A note on the price- and cost structure of retail payment services in the Swedish banking sector 2002. Journal of Banking and Finance 2007, 31:2817-2827.
28. Hancock D., Humphrey D. Payment transactions, instruments, and systems: A survey. Journal of Banking and Finance 1997, 21:1573-1624.
29. Hayashi F., Klee E. Technology adoption and consumer payments: Evidence from survey data. Review of Network Economics 2003, 2:175-190.
30. He P., Huang L., Wright R. Money, banking, and monetary policy. Journal of Monetary Economics 2006, 55:1013-1024.
31. Heckman J.J. The common structure of statistical models of truncation, sample selection and limited dependent variables and a simple estimator for such models. The Annals of Economic and Social Measurement 1976, 5:475-492.
32. Hitachi Consulting, 2008. 2008 Study of Consumer Payment Preferences.
33. Humphrey D.B., Kim M., Vale B. Realizing the gains from electronic payments: Costs, pricing, and payment choice. Journal of Money, Credit and Banking 2001, 33:216-234.
34. Humphrey D.B., Pulley L., Vesala J.M. Cash, paper, and electronic payments: A cross-country analysis. Journal of Money, Credit and Banking 1996, 28:914-939.
35. Jonker, N., 2005. Payment instruments as perceived by consumers-a public survey. De Nederlandsche Bank, Working Paper No. 053.
36. Kim, B., Yilmazer, T., Widdows, R., 2006. Adoption of Internet banking and consumers' payment choices. Working paper, Purdue University.
37. Klee, E., 2006. Families' use of payment instruments during a decade of change in the US payment system. Finance and Economics Discussion Paper No. 2006-01.
38. Klee E. How people pay: Evidence from grocery store data. Journal of Monetary Economics 2008, 55:526-541.
39. Lippi F., Secchi A. Technological change and the households' demand for currency. Journal of Monetary Economics 2009, 56:222-230.
40. Mantel B. Why do consumers pay bills electronically? An empirical analysis. Federal Reserve Bank of Chicago Economic Perspectives 2000, 25:32-48.
41. Mester L.J. Changes in the use of electronic means of payment: 1995-2001. Federal Reserve Bank of Philadelphia Business Review 2003, Q3:18-20.
42. Mester L.J. Changes in the use of electronic means of payment: 1995-2004. Federal Reserve Bank of Philadelphia Business Review 2006, Q2:26-30.
43. Rotemberg J.J., Driscoll J.C., Poterba J.M. Money, output, and prices: Evidence from a new monetary aggregate. Journal of Business and Economics Statistics 1995, 13:67-83.
44. Rysman M. An empirical analysis of payment card usage. Journal of Industrial Economics 2007, LV:1-36.
45. Scholnick B., Massoud N., Saunders A., Carbo-Valverde S., Rodriguez-Fernandez F. The economics of credit cards, debit cards, and ATMs: A survey and some new evidence. Journal of Banking and Finance 2008, 32:1468-1483.
46. Schreft, S., 2006. How and why do consumers choose their payment methods? Federal Reserve Bank of Kansas City, Research Working Paper RWP 06-04.
47. Schuh, S., 2008. The mechanics of money: Adoption and use of payment instruments by US consumers. Unpublished Working Paper.
48. Schuh, S., 2009. The survey of consumer payment choice, 2003-2008. Unpublished Working Paper.
49. Schuh, S., Stavins, J., 2009. Why are (some) consumers (finally) writing fewer checks? The role of payment characteristics. Federal Reserve Bank of Boston, Working Paper No. 09-1.
50. Sprenger, C., Stavins, J., 2008. Credit card debt and payment use. Federal Reserve Bank of Boston, Working Paper No. 08-2.
51. Stavins J. Effect of consumer characteristics on the use of payment instruments. Federal Reserve Bank of Boston New England Economic Review 2001, 3Q:19-31.
52. Theil H. Principles of Econometrics 1971, John Wiley & Sons, Inc., New York.
53. Tobin J. The interest elasticity of the transactions demand for cash. Review of Economics and Statistics 1956, 38:241-247.
54. Whitesell W.C. The demand for currency versus debitable accounts: A note. Journal of Money, Credit, and Banking 1989, 21:246-251.
55. Wooldridge J.M. Econometric Analysis of Cross Section and Panel Data 2002, MIT Press, Cambridge, MA.
56. Zinman J. Debit or credit?. Journal of Banking and Finance 2009, 33:358-366.