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What determines the value and volume of noncash transactions? Evidence from a panel of European and North American countries

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Using data from a panel of 15 countries over the period 1990-1998, the determinants of the use of non cash payment instruments are analysed. The estimation results highlight the importance of distinguishing between the determinants of the value and volume of noncash transactions. It is found in fact that the volume of these transactions is generally affected by changes in the determinants more strongly than their value, and that variables such as the interest rate have a different impact on the volume and the value of the transactions. The findings also suggest that past habits play a dominant role in the intensity of use of noncash payment instruments.
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Document Type: Research Article

Affiliations: 1: School of Economics University of Nottingham Nottingham NG7 2RD UK 2: School of Social Sciences Universiti Sains Malaysia 11800 Minden Penang Malaysia

Publication date: 2004-03-01

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