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Do debit cards decrease cash demand?: causal inference and sensitivity analysis using principal stratification

Publication ,  Journal Article
Mercatanti, A; Li, F
Published in: Journal of the Royal Statistical Society. Series C: Applied Statistics
August 1, 2017

It has been argued that the use of debit cards may modify cash holding behaviour, as debit card holders may either withdraw cash from automated teller machines or purchase items by using point-of-sale devices at retailers. Within the Rubin causal model, we investigate the causal effects of the use of debit cards on the cash inventories held by households by using data from the Italy Survey of Household Income and Wealth. We adopt the principal stratification approach to incorporate the share of debit card holders who do not use this payment instrument. We use a regression model with the propensity score as the single predictor to adjust for the imbalance in observed covariates. We further develop a sensitivity analysis approach to assess the sensitivity of the proposed model to violation of the key unconfoundedness assumption. Our empirical results suggest statistically significant negative effects of debit cards on the household cash level in Italy.

Duke Scholars

Published In

Journal of the Royal Statistical Society. Series C: Applied Statistics

DOI

EISSN

1467-9876

ISSN

0035-9254

Publication Date

August 1, 2017

Volume

66

Issue

4

Start / End Page

759 / 776

Related Subject Headings

  • Statistics & Probability
  • 4905 Statistics
  • 0104 Statistics
 

Citation

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Mercatanti, A., & Li, F. (2017). Do debit cards decrease cash demand?: causal inference and sensitivity analysis using principal stratification. Journal of the Royal Statistical Society. Series C: Applied Statistics, 66(4), 759–776. https://doi.org/10.1111/rssc.12193
Mercatanti, A., and F. Li. “Do debit cards decrease cash demand?: causal inference and sensitivity analysis using principal stratification.” Journal of the Royal Statistical Society. Series C: Applied Statistics 66, no. 4 (August 1, 2017): 759–76. https://doi.org/10.1111/rssc.12193.
Mercatanti A, Li F. Do debit cards decrease cash demand?: causal inference and sensitivity analysis using principal stratification. Journal of the Royal Statistical Society Series C: Applied Statistics. 2017 Aug 1;66(4):759–76.
Mercatanti, A., and F. Li. “Do debit cards decrease cash demand?: causal inference and sensitivity analysis using principal stratification.” Journal of the Royal Statistical Society. Series C: Applied Statistics, vol. 66, no. 4, Aug. 2017, pp. 759–76. Scopus, doi:10.1111/rssc.12193.
Mercatanti A, Li F. Do debit cards decrease cash demand?: causal inference and sensitivity analysis using principal stratification. Journal of the Royal Statistical Society Series C: Applied Statistics. 2017 Aug 1;66(4):759–776.
Journal cover image

Published In

Journal of the Royal Statistical Society. Series C: Applied Statistics

DOI

EISSN

1467-9876

ISSN

0035-9254

Publication Date

August 1, 2017

Volume

66

Issue

4

Start / End Page

759 / 776

Related Subject Headings

  • Statistics & Probability
  • 4905 Statistics
  • 0104 Statistics