Payment instruments, finance and development

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Incentives, Communication, and Payment Instruments

Alternative payment instruments are studied in an economy with private information, delayed communication, and limited commitment. Attention is restricted to checks and bank drafts, which differ in resource cost and communication characteristics. Checks are less costly but settlement delays create a limited commitment constraint. We Þnd that drafts dominate at low wealths and checks at higher w...

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The business of payments and the provision of payment instruments have a rich history, which can be drawn upon in a discussion of standardization. In the middle-ages, for example, the mere existence of a wide variety of foreign and local coins led to a flourishing business of money exchange offices and cashiers in the Netherlands. Malpractices of some of these firms, mostly in the form of physi...

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The Demand for Stored Value Payment Instruments

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Finance and Development

1. Introduction The benefits to developing economies of their comparatively recent integration to international capital markets are clearly substantial: access to international savings allowing the rate of investment (and thus industrial progress and income growth) to be raised; the ability to dampen exogenous shocks by borrowing abroad; and efficiency gains from the transfers of competitive te...

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ژورنال

عنوان ژورنال: Journal of Development Economics

سال: 2018

ISSN: 0304-3878

DOI: 10.1016/j.jdeveco.2018.01.005