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Plastic Money Diffusion and Usage: An Empirical Analysis on Italian Households
Author(s) -
Di Giulio Daniele,
Milani Carlo
Publication year - 2013
Publication title -
economic notes
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.274
H-Index - 19
eISSN - 1468-0300
pISSN - 0391-5026
DOI - 10.1111/ecno.12002
Subject(s) - possession (linguistics) , payment , economics , marginal propensity to consume , affect (linguistics) , empirical evidence , demographic economics , empirical research , business , monetary economics , finance , philosophy , linguistics , epistemology , market liquidity
This paper tries to contribute to the empirical literature on the European consumers’ plastic money payment habits, using the Bank of Italy data over the 1993–2008 period. In line with other evidence on this topic, mainly focused on the US economy, we find that age, education, non‐durable consumptions, regional variation and income are strong predictors of plastic money possession and use in Italy. We also find that households with a higher indebtedness level have a higher propensity to hold credit cards. Furthermore, we find that technological improvements, observed in the last 15 years, do not significantly affect the marginal probabilities to hold and use plastic money conditioned to the main socio‐demographic factors.