Immigration and large banknotes

Andreas Fischer ()

No 2010-17, Working Papers from Swiss National Bank

Abstract: Do immigrants have a higher demand for large denominated banknotes than natives? This micro study examines whether cash orders for CHF 1,000 notes, a banknote used for storage purposes, is concentrated in Swiss municipalities with a high foreign-to-native ratio. Controlling for a range of regional indicators across 251 Swiss municipalities, European immigrants in Switzerland are found to hoard less CHF 1,000 banknotes than natives. This result says that immigration reduces seigniorage (per person) as measured by currency orders. A 1% increase in the immigrant-to-native ratio is coincident with a reduction in currency orders by CHF 4,000. The dampening effect is attributed to specific traits linked to immigrants.

Keywords: immigration; large banknotes; hoarding; money demand (search for similar items in EconPapers)
JEL-codes: E41 E69 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.snb.ch/en/publications/research/workin ... orking_paper_2010_17 (text/html)

Related works:
Journal Article: IMMIGRATION AND LARGE BANKNOTES (2014)
Working Paper: Immigration and large banknotes (2010)
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:snb:snbwpa:2010-17

Access Statistics for this paper

More papers in Working Papers from Swiss National Bank Contact information at EDIRC.
Bibliographic data for series maintained by Enzo Rossi ().