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The effect of rounding on payment efficiency. / Bijwaard, G.E.; Franses, P.H.

In: Computational Statistics & Data Analysis, Vol. 53, No. 4, 2009, p. 1449-1461.

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Harvard

Bijwaard, GE & Franses, PH 2009, 'The effect of rounding on payment efficiency' Computational Statistics & Data Analysis, vol. 53, no. 4, pp. 1449-1461. https://doi.org/10.1016/j.csda.2008.09.034

APA

Bijwaard, G. E., & Franses, P. H. (2009). The effect of rounding on payment efficiency. Computational Statistics & Data Analysis, 53(4), 1449-1461. https://doi.org/10.1016/j.csda.2008.09.034

Vancouver

Bijwaard GE, Franses PH. The effect of rounding on payment efficiency. Computational Statistics & Data Analysis. 2009;53(4):1449-1461. https://doi.org/10.1016/j.csda.2008.09.034

Author

Bijwaard, G.E. ; Franses, P.H. / The effect of rounding on payment efficiency. In: Computational Statistics & Data Analysis. 2009 ; Vol. 53, No. 4. pp. 1449-1461.

BibTeX

@article{a4e5f038042741c4ac82555269ec6e7e,
title = "The effect of rounding on payment efficiency",
abstract = "Theory predicts that dismissing the 1 and 2 euro cent coins from the denominational range of the euro facilitates payment efficiency. To examine whether this theory holds true in practice, data were collected for the Netherlands before and after September 2004, which marks the day that retail stores were allowed to round all amounts at 5 euro cents. The data consist of wallet contents for three cross sections of individuals. As the amounts of various coins in wallets are correlated, a multivariate Poisson-log Normal model is proposed to analyze these data. It is found that rounding leads to less 1 and 2 cent coins in wallets, but that still other coins are over or underrepresented, thereby suggesting that the euro range does not yet lead to fully efficient payment behavior.",
author = "G.E. Bijwaard and P.H. Franses",
note = "Reporting year: 2009",
year = "2009",
doi = "10.1016/j.csda.2008.09.034",
language = "English",
volume = "53",
pages = "1449--1461",
journal = "Computational Statistics and Data Analysis",
issn = "0167-9473",
publisher = "Elsevier",
number = "4",

}

RIS

TY - JOUR

T1 - The effect of rounding on payment efficiency

AU - Bijwaard, G.E.

AU - Franses, P.H.

N1 - Reporting year: 2009

PY - 2009

Y1 - 2009

N2 - Theory predicts that dismissing the 1 and 2 euro cent coins from the denominational range of the euro facilitates payment efficiency. To examine whether this theory holds true in practice, data were collected for the Netherlands before and after September 2004, which marks the day that retail stores were allowed to round all amounts at 5 euro cents. The data consist of wallet contents for three cross sections of individuals. As the amounts of various coins in wallets are correlated, a multivariate Poisson-log Normal model is proposed to analyze these data. It is found that rounding leads to less 1 and 2 cent coins in wallets, but that still other coins are over or underrepresented, thereby suggesting that the euro range does not yet lead to fully efficient payment behavior.

AB - Theory predicts that dismissing the 1 and 2 euro cent coins from the denominational range of the euro facilitates payment efficiency. To examine whether this theory holds true in practice, data were collected for the Netherlands before and after September 2004, which marks the day that retail stores were allowed to round all amounts at 5 euro cents. The data consist of wallet contents for three cross sections of individuals. As the amounts of various coins in wallets are correlated, a multivariate Poisson-log Normal model is proposed to analyze these data. It is found that rounding leads to less 1 and 2 cent coins in wallets, but that still other coins are over or underrepresented, thereby suggesting that the euro range does not yet lead to fully efficient payment behavior.

U2 - 10.1016/j.csda.2008.09.034

DO - 10.1016/j.csda.2008.09.034

M3 - Article

VL - 53

SP - 1449

EP - 1461

JO - Computational Statistics and Data Analysis

JF - Computational Statistics and Data Analysis

SN - 0167-9473

IS - 4

ER -

ID: 364860