EconPapers    
Economics at your fingertips  
 

The Home Economics of E-Money: Velocity, Cash Management, and Discount Rates of M-Pesa Users

Isaac Mbiti and David Weil ()

American Economic Review, 2013, vol. 103, issue 3, 369-74

Abstract: We study the mobile phone-based money transfer system in Kenya. Based on aggregate data, we estimate that the velocity with which units of e-money are transferred among users is approximately four times per month, and that the average number of transfers undergone by a unit of e-money between its creation and destruction is approximately one. Most M-Pesa transactions are made by frequent users. Examination of data on withdrawals shows a high frequency of small withdrawals and no response to "notches" in the price schedule, indicating that many users seem to have high implicit discount rates.

JEL-codes: D14 E42 O12 O16 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/aer.103.3.369
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.3.369 (application/pdf)
http://www.aeaweb.org/aer/ds/may2013/P2013_4369_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

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:aea:aecrev:v:103:y:2013:i:3:p:369-74

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2021-06-16
Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:369-74