Payment choice with consumer panel data

Michael Cohen () and Marc Rysman

No 13-6, Working Papers from Federal Reserve Bank of Boston

Abstract: We exploit scanner data to track payment choice for grocery purchases for a large panel of households over three years. We show that households focus most of their expenditures on one or at most two of these instruments in choosing between using cash, a check, or a card, and they very rarely switch. We focus particularly on the role of expenditure size in determining payment choice. While the use of a long panel for these purposes is novel, the introduction of controls for household heterogeneity has little effect on our estimates. Thus, we find that transaction size is an important determinant of payment choice, not only across households but within households.

Keywords: Consumers' preferences; Cash transactions; Checks; Credit cards; Debit cards (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

Downloads: (external link)
http://www.bostonfed.org/economic/wp/wp2013/wp1306.htm (text/html)
http://www.bostonfed.org/economic/wp/wp2013/wp1306.pdf (application/pdf)

Related works:
Working Paper: Payment Choice with Consumer Panel Data (2012)
Working Paper: Payment choice with consumer panel data* (2012)
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:fip:fedbwp:13-6

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().