00000nam 2200000za 4500 9.847795 CaOODSP 20221107153524 cr ||||||||||| 171127s2017 oncd #ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2017-47E-PDF Chen, Heng, 1981- Cash versus card [electronic resource] : payment discontinuities and the burden of holding coins / by Heng Chen, Kim P. Huynh and Oz Shy. Payment discontinuities and the burden of holding coins Ottawa : Bank of Canada, 2017. ii, 26 p. : graphs Bank of Canada staff working paper, 1701-9397 ; 2017-47 "November 2017." Includes bibliographical references. "Cash is the preferred method of payment for small value transactions generally less than $25. We provide insight to this finding with a new theoretical model that characterizes and compares consumers’ costs of paying with cash to paying with cards for each transaction. Our novel method accounts for how much change is received in the form of banknotes and metal coins, assuming that the weight and size of coins are inconvenient to carry. We use the regression discontinuity design (RDD) approach to estimate the model using the 2013 Bank of Canada Method-of-Payments (MOP) Survey and find a significant number of cash users who switch to paying with debit or credit cards at transaction values marginally above $5 and $10. We attribute this finding to the burden of receiving coins as change associated with the currency denomination structure. Our proposed methodology is general and can be applied to other countries and institutional details."--Abstract, p. ii. Text in English, abstract in English and French. gccst Coins gccst Credit gccst Consumers Huynh, Kim P., 1974- Shy, Oz. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2017-47. (CaOODSP)9.806221 PDF 697 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-5-2017-47-eng.pdf