Choosing and using payment instruments: evidence from German microdata

Germans are still very fond of using cash. Of all direct payment transactions, cash accounts for an astounding 82% in terms of number, and for 58% in terms of value. With a new and unique dataset that combines transaction information with survey data on payment behaviour of German consumers, we shed light on how individuals choose payment instruments and why cash remains so important. We propose a two-stage empirical framework which jointly explains credit card ownership and the use of cash. Our results indicate that the pattern of cash usage is compatible with systematic economic decision making. Consumers decide upon the adoption of payment cards and then use available payment media according to their transaction and personal characteristics, the relative costs of cash and card usage, and their assessment of payment instruments’ characteristics. Whereas older consumers use significantly more cash, the comparison with younger consumers shows that the difference in payment behaviour is not explained by age as such but to a large extent by differences in the characteristics of these two groups. It is interesting that the possession of a credit card, especially alongside a debit card, does not significantly affect the use of cash in Germany. JEL Classification: E41, E58, D12cash substitution, cash usage, credit cards, debit cards, payment behaviour, payment cards, payment innovation, Payment instruments, survey data

Choosing and using payment instruments: evidence from German microdata

Germans are still very fond of using cash. Of all direct payment transactions, cash accounts for an astounding 82% in terms of number, and for 58% in terms of value. With a new and unique dataset that combines transaction information with survey data on payment behaviour of German consumers, we shed light on how individuals choose payment instruments and why cash remains so important. We propose a two-stage empirical framework which jointly explains credit card ownership and the use of cash. Our results indicate that the pattern of cash usage is compatible with systematic economic decision making. Consumers decide upon the adoption of payment cards and then use available payment media according to their transaction and personal characteristics, the relative costs of cash and card usage, and their assessment of payment instruments' characteristics. Whereas older consumers use significantly more cash, the comparison with younger consumers shows that the difference in payment behaviour is not explained by age as such but to a large extent by differences in the characteristics of these two groups. It is interesting that the possession of a credit card, especially alongside a debit card, does not significantly affect the use of cash in Germany. --Payment instruments,payment cards,payment behaviour,payment innovation,cash usage,cash substitution,debit cards,credit cards,survey data

Dynamic BOLD functional connectivity in humans and its electrophysiological correlates

Neural oscillations subserve many human perceptual and cognitive operations. Accordingly, brain functional connectivity is not static in time, but fluctuates dynamically following the synchronization and desynchronization of neural populations. This dynamic functional connectivity has recently been demonstrated in spontaneous fluctuations of the Blood Oxygen Level-Dependent (BOLD) signal, measured with functional Magnetic Resonance Imaging (fMRI). We analyzed temporal fluctuations in BOLD connectivity and their electrophysiological correlates, by means of long (≈50 min) joint electroencephalographic (EEG) and fMRI recordings obtained from two populations: 15 awake subjects and 13 subjects undergoing vigilance transitions. We identified positive and negative correlations between EEG spectral power (extracted from electrodes covering different scalp regions) and fMRI BOLD connectivity in a network of 90 cortical and subcortical regions (with millimeter spatial resolution). In particular, increased alpha (8-12 Hz) and beta (15-30 Hz) power were related to decreased functional connectivity, whereas gamma (30-60 Hz) power correlated positively with BOLD connectivity between specific brain regions. These patterns were altered for subjects undergoing vigilance changes, with slower oscillations being correlated with functional connectivity increases. Dynamic BOLD functional connectivity was reflected in the fluctuations of graph theoretical indices of network structure, with changes in frontal and central alpha power correlating with average path length. Our results strongly suggest that fluctuations of BOLD functional connectivity have a neurophysiological origin. Positive correlations with gamma can be interpreted as facilitating increased BOLD connectivity needed to integrate brain regions for cognitive performance. Negative correlations with alpha suggest a temporary functional weakening of local and long-range connectivity, associated with an idling state

Zur nomenklatur und verbreitung des genus Dinofelis zdansky, 1924 (Therailurus Piveteau, 1948)

Main articleDinofelis abeli Zdansky 1924 and the species of the genus Therailurus Piveteau 1948 belong to the same genus (Dinofelis). The most primitive species concerning the specialisation of the teeth is Dinofelis diastemata (Astre 1929), the most evolved is Dinofelis piveteaui (Ewer 1955) and by parallel evolution Dinofelis abeli Zdansky 1924. D. diastemata-D. barlowi-D. piveteaui form a connected succession whilst D. abeli takes a more isolated place.non

Compression of boundary integral operators discretized by anisotropic wavelet bases

The present article is devoted to wavelet matrix compression for boundary integral equations when using anisotropic wavelet bases for the discretization. We provide a compression scheme which amounts to only $O(N)$ relevant matrix coefficients in the system matrix without deteriorating the accuracy offered by the underlying Galerkin scheme. Here, $N$ denotes the degrees of freedom in the related trial spaces. By numerical results we validate our theoretical findings

High-Energy Calibration of a BGO detector of the GLAST Burst Monitor

The understanding of the instrumental response of the GLAST Burst Monitor BGO detectors at energies above the energy range which is accessible by common laboratory radiation sources (< 4.43 MeV), is important, especially for the later cross-calibration with the LAT response in the overlap region between ~ 20 MeV to 30 MeV. In November 2006 the high-energy calibration of the GBM-BGO spare detector was performed at the small Van-de-Graaff accelerator at SLAC. High-energy gamma-rays from excited 8Be* (14.6 MeV and 17.5 MeV) and 16O* (6.1 MeV) were generated through (p,gamma)-reactions by irradiating a LiF-target. For the calibration at lower energies radioactive sources were used. The results, including spectra, the energy/channel-relation and the dependence of energy resolution are presented.Comment: 2 pages, 1 figure; to appear in the Proc. of the First Int. GLAST Symp. (Stanford, Feb. 5-8, 2007), eds. S.Ritz, P.F.Michelson, and C.Meegan, AIP Conf. Pro

Using cash to monitor liquidity - implications for payments, currency demand and withdrawal behavior

Standard transaction cost arguments can only partially explain why the share of cash transactions is still high in many countries. This paper shows that consumers’ desire to monitor liquidity is one of the reasons. Consumers make use of a distinctive feature of cash – a glance into one’s pocket provides a signal for both the remaining budget as well as the level of past expenses. We propose a theoretical framework which incorporates this feature of cash, and derives implications not only for cash usage as such but also for a broader set of payment-related activities. Survey data from Germany on consumers’ payment and withdrawal patterns are used to test these implications empirically. The data are consistent with all theoretical predictions: consumers who need to keep control over their remaining liquidity and who have elevated costs of information processing and storage will conduct a larger percentage of their payments using cash, hold fewer non-cash payment instruments, withdraw less often and hold larger cash balances than other consumers. Such consumers also use payment cards for some transactions; they switch to non-cash payment instruments only at higher transaction values than other consumers, however. Our model provides an explanation of why cash usage has declined only slowly in some countries despite broad diffusion of non-cash means of payment