The Decision to Use Alternative Payment Methods, State Dependence or Unobserved Heterogeneity?
نویسنده
چکیده
In recent years interest-bearing checking accounts and ATM cards have become quite ubiquitous. These alternative payment methods offer many benefits, but a majority of households have yet to adopt these technologies as a means of payment. The goal of this paper is to answer why some households have been reluctant to make the switch. This paper uses dynamic discrete choice techniques to model household behaviour in adopting alternative payment technologies. The Bank of Italy’s Survey of Household Income and Wealth is used to conduct this study. Preliminary evidence indicates that the household previous financial adoption decisions are a major factor in current period adoption choice.
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