Costos de Transacciones en Costa Rica

Leon, Jorge and Rodríguez, Adolfo (2012): Costos de Transacciones en Costa Rica.

Abstract

In this study we carry out the first formal estimation of the social cost of transactions in Costa Rica. The estimation considers transactions in cash and cards, covers the 2008- 2011 years and is based on the methodology applied by Bergman, Guibourg and Segendorf (2007) for Sweden, with adaptations specific for Costa Rica. We estimate that the social cost of transactions has remained relatively stable as a share of GDP during the years included. We assess that the importance of costs stemming from cash use is high: depending of the assumptions used, our estimations suggest that they are at least as important as those stemming from card transactions. We found that the decisions made by the consumers generate a sizable part of the social costs of using cash. Social costs per transaction are comparable to those calculated in the relevant literature, and they indicate that cash is generally less costly than cards. If the composition of private and social costs is analyzed, it can be seen that the components of the cost on which the BCCR could have more influence are associated with the withdrawal, holding and use of cash in transactions, all of which affect the private costs of consumers, banks and retailers. An institutional strategy to provide alternative electronic payment systems and to promote its use among consumers and retailers would result in a lower need to withdraw cash, in lower cash stocks to manage by banks and other companies, and in a lower opportunity cost for the cash held.

• Item Type: MPRA Paper
• English Title: Costs of transactions in Costa Rica
• Language: Spanish
• Keywords: social costs, private cost, payments system, cash
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights; D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity

References

Asian Banker Research (2011). Understanding the cost of handling cash in Asia Pacific. Building an integrated cash supply chain to improve cash handling efficiency (The Asian Banker Research White Paper)

Bagnall, John y Flood, Darren (2011). Cash Use in Australia: New Survey Evidence . Reserve Bank of Australia Bulletin, september quarter, pp55-62.

Bank of International Settlement (2009). Statistics on Payment and Settlement Systems in Selected Countries. Committee on Payment and Settlement Systems.

Banco Nacional de Dinamarca (2011). Costs of payments in Denmark. Copenhague: Banco Nacional de Dinamarca.

Banco de Portugal (2007). Retail Payment Instruments in Portugal: Costs and Benefits. Lisboa: Banco do Portugal.

Banco Nacional de Bélgica (2005). Costs, advantages and disadvantages of different payments methods (mimeo)

Bergman, Matts (2003). Payment System Efficiency and Pro-Competitive Regulation. Riksbank workshop, May 23-24 2003.

Bergman, Mats; Guibourg, Gabriella y Segendorf, Björn (2007). The Costs of Paying- Private and Social Costs of Cash and Card (Sveriges Riksbank Working Paper Series 212).

Brits, Hans y Winder, Carlo (2005). Payments are no free lunch (mimeo). De Nederlandsche Bank.

Fidjestøl, Asbjørn, Flatraaker, Dag y Vogt, Carl (1989a). Inntekter, kostnader og prissetting i betalingsformidlingen (Ingresos, costos y determinación de precios en el sistema de pagos). Penger og Kreditt 4, Norges Bank

Fidjestøl, Asbjørn, Flatraaker, Dag y Vogt, Carl (1989b). Kostnader I betalingsformidlingen (Costs in the payment system). Penger og Kreditt 3, Norges Bank.

Garcia-Swartz, Daniel; Hahn, Robert y Layne-Farrar, Anne (2006). The Move Toward a Cashless Society: A Closer Look at Payment Instrument. Review of Network Economics, 5(2), pp175-198.

Garcia-Swartz, Daniel; Hahn, Robert y Layne-Farrar, Anne (2004). The Economics of a Cashless Society: An Analysis of the Costs and Benefits of Payment Instruments. (AEI-Brookings Joint Center for Regulatory Studies Related Publication 04-2004)

Gresvik, Olaf y Øwre, Grete (2003). Costs and Income in the Norwegian Payment System 2001. An application of the Activity Based Costing Framework (Norges Bank Working Paper 2003/08).

Gresvik, Olaf y Haare, Harald (2009). Costs in the Norwegian payment system (Staff Memo No. 4). Oslo: Norges Bank.

Guibourg Gabriella y Segendorf, Björn (2004). Do Prices Reflect Costs? A Study of the Price- and Cost Structure of Retail Payment Services in the Swedish Banking Sector 2002 (Sveriges Riksbank Working Paper Series 172).

Humphrey, David; Kim, Moshe y Vale, Bent (2001). Realizing the Gains from Electronic Payments: Costs, Pricing, and Payment Choice. Journal of Money, Credit and Banking, 33(2), 216-234.

Humphrey, David; Pulley, Lawrence y Vesala, Jukka (1996). Cash, paper and electronic payments: A cross-country analysis. Journal of Money Credit and Banking 33, pp216–234

Humphrey, David; Pulley, Lawrence y Vesala, Jukka (2000). The Check's in the Mail: Why the United States Lags in the Adoption of Cost-Saving Electronic Payments. Journal of Financial Services Research, 17(1), pp 17-39.

León, Jorge (2012) “Hábitos de Pago y los Costos de Transacción en Costa Rica” DI-008-2012. Banco Central de Costa Rica.

Nederlandsche Bank (2004). The Cost of Payments. Quarterly Bulletin. marzo, pp57-64. Nyberg, Lars (2010). Time to change cash to cards? (Discurso en la 9na Nordic Card Markets Conference, Estocolmo, 20 de enero de 2010.

Robinson, Pål y Flatraaker, Dag (1995a). Income, costs and pricing in the payment system. Economic Bulletin, 3, Norges Bank

Robinson, Pål y Flatraaker, Dag (1995b). Costs in the payment system. Economic Bulletin, 2, Norges Bank.

Segendorf, Björn y Jansson, Thomas (2012). The Cost of Consumer Payments in Sweden (Sveriges Riksbank Working Paper Series No. 262).

Simes, Ric; Lancy, Annette y Harper, Ian (2006). Costs and Benefits of Alternative Payment Instruments in Australia (Documento preparado para la Payments System Conference 2006. Centre for Business and Public Policy, Melbourne Business School.

Takala, Kari y Viren, Matti (2008). Efficiency and costs of payments: some new evidence from Finland (Bank of Finland Research Discussion Papers 11). Helsinki: Banco Central de Finlandia.

Turján, Anikó ; Divéki, Éva ; Keszy-Harmath, Éva; Kóczán, Gergely, y Takács, Kristóf. (2011). Nothing is free: A survey of the social cost of the main payment instruments in Hungary (MNB Occasional Papers 93). Budapest: Banco Central de Hungría.