Digital payments and consumption: Evidence from the 2016 demonetization in India

• Main Authors: AGARWAL, Sumit, GHOSH, Pulak, LI, Jing, RUAN, Tianyue
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: digital payments; financial technology; consumption; India; demonetization; Asian Studies; Finance
• Online Access: https://ink.library.smu.edu.sg/soe_research/2590; https://ink.library.smu.edu.sg/context/soe_research/article/3589/viewcontent/SSRN_id3641508.pdf
• Institution: Singapore Management University

We study how consumer spending responds to digital payments, using the differential switch to digital payments across consumers induced by the sudden 2016 Indian Demonetization for identification. Usage of digital payments rose by 3.38 percentage points and monthly spending increased by 3% for an ad...