NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Financial Innovation and the Transactions Demand for Cash

Fernando E. Alvarez, Francesco Lippi

NBER Working Paper No. 13416
Issued in September 2007

---- Acknowledgements -----

We thank Daron Acemoglu for constructive criticisms on a previous version of the paper. We also thank Alessandro Secchi for his guidance in the construction and analysis of the database. We benefited from the comments of Manuel Arellano, V.V. Chari, Luigi Guiso, Bob Lucas, Greg Mankiw, Fabiano Schivardi, Rob Shimer, Pedro Teles, Randy Wrigth and seminar participants at the University of Chicago, University of Sassari, Harvard University, MIT, Wharton School, Northwestern, FRB of Chicago, FRB of Minneapolis, Bank of Portugal, European Central Bank, Bank of Italy, CEMFI, EIEF, University of Cagliari, University of Salerno, Austrian National Bank, Tilburg University and Erasmus University Rotterdam. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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