Portal de Periódicos da CAPES

Payment Innovations, the Shadow Economy and Cash Demand of Households in Euro Area Countries

2020; RELX Group (Netherlands); Linguagem: Inglês

10.2139/ssrn.3702126

1556-5068

Hans‐Eggert Reimers, Friedrich Schneider, Franz Seitz,

Taxation and Compliance Studies

Download This Paper Open PDF in Browser Add Paper to My Library Share: Permalink Using these links will ensure access to this page indefinitely Copy URL Payment Innovations, the Shadow Economy and Cash Demand of Households in Euro Area Countries 27 Pages Posted: 1 Oct 2020 See all articles by Hans-Eggert ReimersHans-Eggert Reimersaffiliation not provided to SSRNFriedrich SchneiderJohannes Kepler University Linz - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA)Franz SeitzTechnical University of Applied Sciences Weiden Date Written: 2020 Abstract 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. Moreover, we take due account of country-specific repercussions of the financial and economic crisis of 2008/09, time series properties and distinguish between small and large countries. We find a significant and positive relationship among households' cash holdings, the volume of transactions and the size of the shadow economy irrespective of country size for all euro area countries over our sample period. Additionally, there is a substitution relationship between the accessibility and availability of cashless payments media and cash demand. And a decreasing number of ATMs reduces cash holdings. These results have important political and financial implications. Keywords: cash, cashless payments, shadow economy, cash demand function, panel cointegration JEL Classification: C230, E410, E580 Suggested Citation: Suggested Citation Reimers, Hans-Eggert and Schneider, Friedrich G. and Seitz, Franz, Payment Innovations, the Shadow Economy and Cash Demand of Households in Euro Area Countries (2020). Available at SSRN: https://ssrn.com/abstract=3702126 Hans-Eggert Reimers (Contact Author) affiliation not provided to SSRN No Address Available Friedrich G. Schneider Johannes Kepler University Linz - Department of Economics ( email ) Altenbergerstrasse 69A-4040 Linz, 4040Austria+43 732 2468 8210 (Phone)+43 732 2468 8208 (Fax) CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Poschinger Str. 5Munich, DE-81679Germany HOME PAGE: http://www.CESifo.de Institute for the Study of Labor (IZA) P.O. Box 7240Bonn, D-53072Germany Franz Seitz Technical University of Applied Sciences Weiden ( email ) Hetzenrichter Weg 15D-92637 Weiden i.d. OpfGermany(49) 961-382-1318 (Fax) Download This Paper Open PDF in Browser Do you have a job opening that you would like to promote on SSRN? Place job opening Paper statistics Downloads 89 Abstract Views 250 rank 357,522 73 References PlumX Metrics Related eJournals CESifo Working Paper Series Follow CESifo Working Paper Series Subscribe to this free journal for more curated articles on this topic FOLLOWERS 9,394 PAPERS 9,183 This Journal is curated by: Clemens Fuest at CESifo (Center for Economic Studies and Ifo Institute, University of Munich) Banking & Insurance eJournal Follow Banking & Insurance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,813 PAPERS 28,817 This Journal is curated by: René M. Stulz at Ohio State University (OSU) - Department of Finance European Finance eJournal Follow European Finance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 1,691 PAPERS 15,284 This Journal is curated by: John A. Doukas at Old Dominion University - Strome College of Business Household Finance eJournal Follow Household Finance eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS 756 PAPERS 10,331 This Journal is curated by: Nicholas S. Souleles at University of Pennsylvania - Finance Department, Peter Tufano at University of Oxford - Said Business School Feedback Feedback to SSRN Feedback (required) Email (required) Submit If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Submit a Paper Section 508 Text Only Pages SSRN Quick Links SSRN Solutions Research Paper Series Conference Papers Partners in Publishing Jobs & Announcements Newsletter Sign Up SSRN Rankings Top Papers Top Authors Top Organizations About SSRN SSRN Objectives Network Directors Presidential Letter Announcements Contact us FAQs Copyright Terms and Conditions Privacy Policy We use cookies to help provide and enhance our service and tailor content. To learn more, visit Cookie Settings. This page was processed by aws-apollo4 in 0.219 seconds