Hiroshi Fujiki
Cash demand and financial literacy: A case study using Japanese survey data
Chuo University
understanding statistical relationship cash demand financial literacy important addressing policy concerns japan government tried reduce cash demands daytoday transactions hoarding however scholars investigated point available statistics household cash demand contain standard proxy variable financial literacy distinguish cash demands among various households daytoday transactions hoarding findings research fill gaps first imputing missing financial literacy variable surveys comparing distribution cash holdings high middle low levels financial literacy groups comparing distributions cash holdings three groups cash distributions also compared dropping observations higher percentiles expecting cash demand hoarding would show higher percentile cash distributions thus possible examine cash demands daytoday transactions comparison distribution ratio cash demands total financial assets holdings plus cash demands hereafter cash ratio across three levels financial literacy groups also made found person higher level financial literacy tends large amount cash holdings perhaps mainly sake hoarding however person also tends kinds financial assets thus lower cash ratio value taking findings face value promotion financial literacy cashless payments daytoday transactions would reduce relatively small amount cash demands daytoday transactions would necessarily reduce amount cash demands hoarding