Publications et documents de travail
- revues scientifiques
    Yassine Bouhdaoui, David Bounie and Abel Francois
Efficient Payments and Price Distribution
The studies dealing with the efficiency of monetary denomination systems are usually based on a restrictive assumption: prices paid cash are assumed to be evenly distributed in the economy. Using an empirical (observed) distribution of prices in the French economy, this paper measures the losses in efficiency when using a uniform distribution of prices. We show that i. the average number of tokens used in transactions when observed prices are concerned is around two times less than that obtained when prices are evenly distributed; ii. considering a uniform distribution of prices leads to overestimate the average frequency of use of larger denominations and to underestimate the average frequency of use of lower denominations, at least the one euro denomination; iii. the probability of existence of a price, the number of occurences of a price, the proportion of lower prices and, finally, the proportion of round prices are central to explain the observed payment efficiency. At the end, the simulations provide useful clues to better understanding how and why the price distribution affects payment efficiency.
- revues scientifiques
    Nicolas Houy and David Bounie
Efficacité des paiements en euros et système de divisions monétaires
Payment Efficiency in Euro and Monetary Denomination Systems. This study aims at measuring the efficiency of the European monetary denomination system. On the contrary to the previous studies based on a uniform distribution of prices in the economy, we introduce a real distribution of prices observed in the French economy. We show that gain efficiencies of about 10% could be reached by introducing an 80 cents coin or by replacing the 500 euros note by the 80 cents coin. More generally, we outline that it would be more efficient to replace the highest face values - 100, 200 and 500 euros notes - by the 80 cents coin. At the opposite, it will be inefficient to remove the lowest face values such as the 20 and the 50 cents coins.
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