The Impact of Technological Change on the Currency Behavior of Households: An Empirical Cross-section Study

Abstract

The purpose of this article is to determine the impact of adoption of new technology (ATMs) by households on their behavior in holding currency inventories. Previous studies hypothesize that households respond to the availibility of ATMs by reducing their currency inventories. To test this hypothesis, data from two large household surveys are utilized. It is shown that the use of technology has a substantial impact on the currency inventories held by households. Copyright 1994 by Ohio State University Press.

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