If the denominational structure of the euro is used in an optimal way, there should be no preferences for certain coins and notes when making cash payments. In Kippers et al. [2003. An empirical study of cash payments. Statistica Neerlandica 57, 484–508] it is documented that the Dutch public did have certain preferences concerning the Dutch guilder in the sense that a few notes and coins were used less often than they should have been. With the advent of the euro, which changed the denominational structure from 1––5 (guilder) to 1–2–5 (euro), it is of interest to examine whether there are any preferences for euro coins and notes. In this paper we use a unique dataset for the Netherlands to empirically examine if the euro range is used in an optimal way. We find that there are no preferences for certain euro denominations.

Additional Metadata
Keywords Euro cash, payment behavior, truncated Poisson regression model
JEL Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems (jel E42), Central Banks and Their Policies (jel E58)
Persistent URL dx.doi.org/10.1016/j.euroecorev.2007.01.001, hdl.handle.net/1765/13359
Series Econometric Institute Reprint Series
Journal European Economic Review
Citation
Franses, Ph.H.B.F, & Kippers, J. (2007). An empirical analysis of euro cash payments. European Economic Review, 51(8), 1985–1997. doi:10.1016/j.euroecorev.2007.01.001