Monies and Banking

Anthony M. Santomero and John Seater (john_seater@ncsu.edu)

Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania

Abstract: This paper investigates the demand by households for transaction services from the financial sector. Households buy several goods with any of several media of exchange. The households choose the medium of exchange to use for each type of good, how much of each type of medium to hold, and the frequencies of commodity and financial transactions. The variety of financial services demanded by a household depends positively on the household's income, with households at the bottom of the income distribution demanding no financial services at all. Household demand for financial services also depends on how the household allocates its income among the available goods. Households with the same income but different allocations will demand different mixes of financial services. These results have several implications for the organization of the banking market, especially the location of bank branches, and the availability of banking services in different areas.

Date: 1997-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/97/9711.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/97/9711.pdf [301 Moved Permanently]--> https://wifpr.wharton.upenn.edu/fic/papers/97/9711.pdf)

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:wop:pennin:97-11

Access Statistics for this paper

More papers in Center for Financial Institutions Working Papers from Wharton School Center for Financial Institutions, University of Pennsylvania Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel (krichel@openlib.org).