Calendar and seasonal effects on the size of withdrawals from ATMs managed by Euronet

Abstract

This study analyses the calendar effects on withdrawals from Automated Teller Machines (ATMs) (daily data) managed by the Euronet network for the period from January 2008 to March 2012. Our study focuses on the identification of specific calendar and seasonal effects in the ATM cash withdrawal series of the company in the Polish provinces of Małopolska and Podkarpackie. The results of the analysis show that withdrawals depend strongly on the day of the week. On Fridays more cash is withdrawn than on other days, and Saturdays and Sundays are the days of the week with the lowest level of withdrawals. In a month, it can be seen that cash withdrawals take place more often in the second and in the last weeks of the month. This observation suggests that withdrawals from ATMs can be related to the profile of wage withdrawals. In Poland, in the public sector wages are paid at the beginning of the month, and in the private sector at the end of the month. The time series of withdrawals also reflect seasonality. The largest amounts are withdrawn in July, August and December. Reason for the increased demand for cash are the summer holidays and the Christmas season. The results reflect consumer habits which show pronounced calendar and seasonal effects.