Cash Sources and Sinks in Mexico

• Activity Number: 119
• Type: Topic Contributed
• Date/Time: Monday, August 4, 2014 : 8:30 AM to 10:20 AM
• Sponsor: Survey Research Methods Section
• Author(s): Benjamin Mazzotta*+
• Companies: Tufts University

Abstract

Our paper examines the relationship between beliefs about cash and the sources and sinks of cash for a sample of 1200 individuals. The survey dataset is based on face to face personal interviews using a multistage geographic random sample of urban and periurban areas in Guadalajara, Mexico DF, Monterrey and Tijuana. Interview topics included basic demographic traits, employment, financial practices, beliefs about cash, sources of cash, cash access events and associated transaction costs; and payment choice for a set of sixteen bills and nine purchases. We estimate the prevalence of financial account ownership, the preferred sources and frequency of cash access, and the aggregate costs of access to cash. We examine the effects of financial inclusion on beliefs about the risks and necessity of cash; and the determinants of payment choice conditional on financial inclusion. The survey dataset is the second in a series of four country studies covering similar topics in the United States, Mexico, India, and Egypt.