Credit Cards and the Transaction Demand for Money

Hafiz Akhand () and Ross Milbourne

Working Paper from Economics Department, Queen's University

Abstract: This paper introduces credit cards as an alternative means of payment in a simple inventory theoretic framework. One important feature of the model is the endogenous credit card use. The model predictions are used to estimate the degree to which credit cards have been responsible for the overpredictions of money demand. The results show credit cards contributed little to the shift in 1974-76, and explain approximately a 4 per cent shift in 1979-81.

Pages: 18 pages
Date: 1984
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:549

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().