Data di Pubblicazione:
2009
Citazione:
The economics of credit cards in Italy: a multinomial logit model / Pulina, Manuela. - (2009). (Intervento presentato al convegno European Congress of the Regional Science Association International (ERSA)).
Abstract:
isms. Despite these important changes few microeconomic studies are available in the field of payment
choice. This paper aims to analyse the demographic and socioeconomics determinants that influence the choice
of payment mechanism by bank customers. The data used are from recent account archives for bankcards issued
throughout Italy. The data are representative of credit cards in Italy for the 12 month period between January
2007 and December 2008. Analysing the determinants of credit cards needs a random sample among the
population of all applicants, however, this paper analyses data on successful applicants that had access to a credit
card. To overcome such a potential source of bias a microeconomics underpinning is due. According to the
microeconomics theory, consumers are likely to allocate their expenditure across a basket of goods and services.
In the first stage, they allocate their budget expenditure between banking services and other goods & services.
Secondly, they allocate their expenditure amongst credit cards and other means of payment, and then choose the
budget share to allocate to each of the preferred credit cards. From an empirical perspective a twoway approach
can be applied. In the first stage, potential applicants decide whether or not acquire a credit card ; in the second
stage, they decide what type of credit card to own depending on certain demographic and socioeconomic
characteristics. The aim of the present paper consists of focusing on the second stage of the customers’ decision
making process.
The paper employs a multinomial logit framework with a model that incorporates the type of payment
mechanism as the dependent variable that is regressed on a set of explanatory variables (nationality, age, gender,
urbanization, loyalty, credit supply, etc). The empirical results provide useful indicators on the structural
characteristics of the banking payment system chosen by customers based on the available sample. Furthermore,
credit cards offer a microeconomics perspective to analyse consumers’ behaviour and preferences.
choice. This paper aims to analyse the demographic and socioeconomics determinants that influence the choice
of payment mechanism by bank customers. The data used are from recent account archives for bankcards issued
throughout Italy. The data are representative of credit cards in Italy for the 12 month period between January
2007 and December 2008. Analysing the determinants of credit cards needs a random sample among the
population of all applicants, however, this paper analyses data on successful applicants that had access to a credit
card. To overcome such a potential source of bias a microeconomics underpinning is due. According to the
microeconomics theory, consumers are likely to allocate their expenditure across a basket of goods and services.
In the first stage, they allocate their budget expenditure between banking services and other goods & services.
Secondly, they allocate their expenditure amongst credit cards and other means of payment, and then choose the
budget share to allocate to each of the preferred credit cards. From an empirical perspective a twoway approach
can be applied. In the first stage, potential applicants decide whether or not acquire a credit card ; in the second
stage, they decide what type of credit card to own depending on certain demographic and socioeconomic
characteristics. The aim of the present paper consists of focusing on the second stage of the customers’ decision
making process.
The paper employs a multinomial logit framework with a model that incorporates the type of payment
mechanism as the dependent variable that is regressed on a set of explanatory variables (nationality, age, gender,
urbanization, loyalty, credit supply, etc). The empirical results provide useful indicators on the structural
characteristics of the banking payment system chosen by customers based on the available sample. Furthermore,
credit cards offer a microeconomics perspective to analyse consumers’ behaviour and preferences.
Tipologia CRIS:
4.2 Abstract in Atti di convegno
Elenco autori:
Pulina, Manuela
Link alla scheda completa:
Titolo del libro:
Territorial cohesion of Europe and integrative planning