Bank of Canada paper investigates the ‘burden of coins’

cash-running-web

Consumers are more likely to use cash for small transactions if the purchase results in a small amount of change, a working paper published by the Bank of Canada says.

In Cash Versus Card, researchers examine consumer behaviour when making low-value transactions using data from a 2013 survey.

In their model, the authors – Heng Chen, Kim Huynh and Oz Shy – assume consumers receive change in the most “efficient manner”, therefore minimising the number of coins received when making low-value

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: