Cash Is King: The Role of Financial Infrastructure in Digital Adoption

IF 1.9 Q2 BUSINESS, FINANCE

Review of Corporate Finance Studies Pub Date : 2023-08-11 DOI:10.1093/rcfs/cfad018

Bhavya Aggarwal, Nirupama Kulkarni, S. Ritadhi, Abhay P. Aneja, P. Bardhan, A. Basu, Pallavi Chavan, D. Mukherjee, P. Mukherjee, Abhinav Narayanan, Satish Rath, R. Ravikumar, Raghuram Rajan, A. Srinivasan, Carly Trachtman

引用次数: 3

Abstract

This paper examines whether a one-time, extensive, but temporary shock to cash supply can affect the adoption of digital payments. We exploit the 2016 demonetization episode in India, which overnight discontinued 86% of cash in circulation. Using novel administrative data from retail debit card transactions, we identify a 12% increase in digital payments in areas adversely affected by the cash shortage, which persisted well after the restoration of cash supply. Examining mechanisms, we find a limited role for social networks and stronger support for learning by doing. Further, information frictions hinder the immediate adoption of digital payments.

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现金为王:金融基础设施在数字化应用中的作用

本文考察了一次性、广泛但暂时的现金供应冲击是否会影响数字支付的采用。我们利用了2016年印度的废钞事件，该事件一夜之间停止了86%的现金流通。利用零售借记卡交易的新管理数据，我们发现在受现金短缺不利影响的地区，数字支付增加了12%，在现金供应恢复后，这种情况仍然存在。通过对机制的考察，我们发现社交网络的作用有限，而对实践学习的支持更强。此外，信息摩擦阻碍了数字支付的迅速采用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Corporate Finance Studies BUSINESS, FINANCE-

CiteScore

17.80

自引率

1.80%

发文量

期刊介绍： The Review of Corporate Finance Studies (RCFS) is dedicated to publishing high-quality research in the expansive field of Corporate Finance. The journal seeks original contributions, reviewing papers based on their unique insights into Corporate Finance. This encompasses a wide spectrum, including a firm's interactions with stakeholders, capital markets, internal organization structure, compensation mechanisms, corporate governance, and capital management. RCFS also welcomes research in financial intermediation, financial institutions, microstructure, and the implications of asset pricing for Corporate Finance. The journal considers theoretical, empirical, and experimental papers for review.