Abstract
We examine the determinants of the choice of payment instruments for day-to-day transactions, and whether households that exclusively use cash (only cash users) hold more cash than households that use credit cards exclusively, cash and credit cards, or credit cards and other payment methods (card users) using Japanese household data. We obtain two main results. First, card users generally have higher disposable income, more financial assets, better financial knowledge, younger household heads, female household heads, higher educational attainment, and are not self-employed compared with only cash users. These findings suggest that an improvement in financial knowledge could increase the usage of credit cards in Japan. Second, holding other household characteristics constant, card users for day-to-day transaction values of more than 1000 yen have lower cash holdings than only cash users.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the Japanese and International Economies
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
