Article ID Journal Published Year Pages File Type
964456 Journal of International Money and Finance 2008 11 Pages PDF
Abstract

This paper estimates the speed and determinants of euro adoption across Italian provinces by exploiting the natural experiment in early 2002 when euro and lira dually circulated as legal tender. A unique data set with daily observations on the net flows of euro banknotes from the branches of the Bank of Italy, province by province, is used. The speed of euro adoption differs according to the availability of transaction technology and demographic characteristics. Lessons for countries adopting a new currency are obtained.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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