How to become a cashless economy and what are the determinants of eliminating cash

Figures & data

Table 1. Participants of the panel

How many waves has the participant answered the questionnaire?	Absolute Frequency	Waves	Absolute Frequency
1	16,211	2002	5,143
2	9,946	2005	5,962
3	5,309	2008	6,197
4	3,245	2011	6,106
5	1,497	2014	6,120
		2017	6,680
Total	36,208		36,208

Source: Prepared by the author using data from the EFF

Table 2. Evolution in time of the average proportion of card payments and the monthly average number of card transactions

Wave	2002	2005	2008	2011	2014	2017
Observations	5,140	5,957	6,185	6,094	6,088	6,680
% Card payments	16.42%	18.62%	20.67%	25.97%	31.21%	33.74%
Number of card transactions	8.22	9.57	9.52	11.48	13.49	18.08

Source: Prepared by the author using data from the SSHF

Table 3. Results of entity fixed-effects and entity and time fixed-effects models

	Entity fixed effects	Entity and time fixed effects
med_education	0.076***	0.063***
high_education	0.117***	0.108***
age	−0.003***	−0.004***
	.	.
income	0.00003***	0.00004***
net_wealth	0.000000001***	0.0000000006***
_cons	0.354***	0.522***
R^2 within	0.05	0.11
R^2 between	0.21	0.27
R^2 overall	0.17	0.23
Corr (ui. x)	0.18	0.11

*10% significance

**5% significance

***1% significance

Source: SSHF

Table 4. Results of entity fixed-effects and entity and time fixed-effects models

	Entity fixed effects	Entity and time fixed effects
med_education	0.061***	0.060***
high_education	0.103***	0.103***
age	0.007***	0.003***
Cohort(ref 90s)
20s	−0.61***	−0.16***
30s	−0.57***	−0.19***
40s	−0.43***	−0.11**
50s	−0.31***	−0.05
60s	−0.20***	−0.01
70s	−0.10***	−0.03
80s	−0.03	−0.03
income	0.00003***	0.00004***
net_wealth	0.0000000006***	0.0000000006***
_cons	0.150***	0.320***
R^2 within	0.11	0.11
R^2 between	0.24	0.26
R^2 overall	0.21	0.22
Corr (ui, x)	0.06	0.08

*10% significance

**5% significance

***1% significance

Source: SSHF

Figure 1. Relationship among ages and the proportion of card payments.

Figure 2. Relationship among ages and the fitted values of the model in.Table 4

Table 5. Results of entity fixed-effects and entity and time fixed-effects models adding squared age

	Entity fixed effects	Entity and time fixed effects
med_education	0,061***	0,059***
high_education	0,102***	0,100***
age	0,026***	0,019***
age^2	−0,0002***	−0,0002***
Cohort(ref 90s)
20s	−0.72***	−0.27***
30s	−0.72***	−0.33***
40s	−0.61***	−0.29***
50s	−0.50***	−0.24***
60s	−0.38***	−0.18***
70s	−0.23***	−0.10***
80s	−0.10***	−0.04
income	0.00003***	0.00003***
net_wealth	0.0000000007***	0.0000000006***
_cons	−0.225***	−0.050***
R^2 within	0.11	0.12
R^2 between	0.25	0.27
R^2 overall	0.22	0.23
Corr (ui, x)	0.09	0.10

*10% significance

**5% significance

***1% significance

Source: SSHF

Table 6. Results of dynamic panel data estimations

	Entity fixed effects	Entity and time fixed effects
Lag1(card)	0.014**	0.008
Larg2(card)	−0.001	−0.008
med_education	0,061***	0,060***
high_education	0,102***	0,101***
age	0,026***	0,019***
age^2	−0,0002***	−0,0002***
Cohort(ref 90s)
20s	−0.71***	−0.27***
30s	−0.71***	−0.33***
40s	−0.60***	−0.28***
50s	−0.49***	−0.24***
60s	−0.37***	−0.18***
70s	−0.22***	−0.10***
80s	−0.10***	−0.04
income	0.00003***	0.00003***
net_wealth	0.0000000007***	0.0000000006***
_cons	−0.225***	−0.050***

*10% significance

**5% significance

***1% significance

Source: SSHF

Table 7. Results of controlled experiment

	Card	Mobile
Benefits
Fast charging that allows 52% of the battery to be recovered in approximately 33 minutes (error 4)	−0.038 (0.554)	−0.2*** (0.000)
Triple 12 Mpx camera with a wide angle, ultra wide angle and telephoto lens (error 1)	0	0.112* (0.0062)
	−1
3.5 inch high resolution variable angle (error 3)	−0.1** (0.002)	−0.0056
Costs
The price of the device with less storage is close to € 999.99 (error 6)	0.038 (0.393)	−0.05 (0.2)
Out-of-warranty repair costs are € 465.76 (error 5)	0.038 (0.567)	0.2*** (0.001)
With an additional payment of € 69.99 you have two more years of warranty (error 2)	0.07** (0.013)	0.086* (0.007)

*** p < 0.01, ** p < 0.05, * p < 0.1

Table 8. Total benefits and costs model

	Card	Mobile
Benefits	−0.153 (0.122)	−0.2*** (0.006)
Costs	0.1538 (0.101)	0.26*** (0.000)

*** p < 0.01, ** p < 0.05, * p < 0.1

Table

Variable	Definition	mean
		Whole	1 history
card	Percentage of spending by card over the total monthly expenditure^9	24.8%	24.7%
education	0 = Low level (illiterate, primary education, occupational training without having a middle school certificate (ESO), middle school certificate (ESO))	55.56%	55.40%
	1 = Medium level (occupational training after finishing middle school, high school certificate, other training after finishing high school)	23.30%	23.21%
	2 = High level (licenced, graduate, with a Master’s, PhD.)	31.14%	31.39%
age	Age of the participant	59.60	58.72
income	Annual income of the household^10	52,200	49,510
net_wealth	Value of net wealth	1,014,097	907,143

Source: Prepared by the author using data from the EFF

Table

	Entity fixed effects	Entity and time fixed effects
med_education	0,065***	0,067***
high_education	0,100***	0,103***
age	0,027***	0,022***
age^2	−0,0002***	−0,0001***
Cohort(ref 90s)
20s	−0.60***	−0.29***
30s	−0.60***	−0.34***
40s	−0.53***	−0.31***
50s	−0.45***	−0.27***
60s	−0.35***	−0.21***
70s	−0.20***	−0.11*
80s	−0.11*	−0.07
income	0.00001***	0.00001***
net_wealth	0.000000000*	0.0000000009*
_cons	−0.247***	−0.146***
R^2 within	0.09	0.09
R^2 between	0.25	0.23
R^2 overall	0.24	0.21
Corr (ui, x)	0.11	0.11

*10% significance

**5% significance

***1% significance

Source: SSHF