Survival Analysis of Bank Note Circulation: Fitness, Network Structure, and Machine Learning
Diego Rojas,
Juan Estrada,
Kim Huynh and
David Jacho-Chávez
A chapter in The Econometrics of Networks, 2020, vol. 42, pp 235-262 from Emerald Group Publishing Limited
Abstract:
The efficient distribution of bank notes is a first-order responsibility of central banks. The authors study the distribution patterns of bank notes with an administrative dataset from the Bank of Canada’s Currency Inventory Management Strategy. The single note inspection procedure generates a sample of 900 million bank notes in which the authors can trace the length of the stay of a bank note in the market. The authors define the duration of the bank note circulation cycle as beginning on the date the bank note is first shipped by the Bank of Canada to a financial institution and ending when it is returned to the Bank of Canada. In addition, the authors provide information regarding where the bank note is shipped and later received, as well as the physical fitness of the bank note upon return to the Bank of Canada’s distribution centers.K–prototype clustering classifies bank notes into types. A hazard model estimates the duration of bank note circulation cycles based on their clusters and characteristics. An adaptive elastic net provides an algorithm for dimension reduction. It is found that while the distribution of the duration is affected by fitness measures, their effects are negligible when compared with the influence exerted by the clusters related to bank note denominations.
Keywords: Cash; big data; clustering; elastic net; hazard models; K-prototypes; E42; E51; C52; C65; C81 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 1-905320200000042018
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers
Related works:
Working Paper: Survival Analysis of Banknote Circulation: Fitness, Network Structure and Machine Learning (2020) 
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:eme:aecozz:s0731-905320200000042018
DOI: 10.1108/S0731-905320200000042018
Access Statistics for this chapter
More chapters in Advances in Econometrics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().