01.10.2020

How currency denomination and the ATM affect the way we pay: a comment on Shy

Van Hove, L., How currency denomination and the ATM affect the way we pay: a comment on ShyJournal of Economics and Business, Vol. 111, September-October 2020, article number 105920.

Using payment diary data, Shy (2020) shows that the way Americans pay is affected by the denominations of the US dollar, and in particular by the availability, in ATMs, of the $20 note. Shy also proposes a model to provide intuition for this finding. Unfortunately, this model lacks generality.