rdf-syntax-grammar
mods:
  schema location: http://www.loc.gov/mods/v3 http://www.loc.gov/standards/mods/v3/mods-3-2.xsd
  title info:
    non sort: The
    title: effect of pricing on demand and revenue in Federal Reserve ACH payment processing
  name:
    name part: Stavins, Joanna.
    role:
      role term: creator
  name:
    name part: Bauer, Paul W.
  type of resource: text
  genre: bibliography
  origin info:
    place:
      place term: mau
    date issued: 1997
    issuance: monographic
  language:
    language term: eng
  physical description:
    form: print
    extent: 38 pages : illustrations ; 28 cm.
  abstract: Because the automated clearinghouse (ACH) has been found to have lower social costs than paper checks, the Federal Reserve has been promoting more widespread use of ACH by lowering ACH processing fees. In this paper we have obtained the first numerical estimates of ACH demand elasticities, a measure of the responsiveness of ACH demand to price changes. In order to determine how robust the estimates are, various methods were employed to estimate the demand elasticities. Our results show that the volume of ACH items processed by the Federal Reserve does respond to changes in per-item fees. We find that demand for ACH credit is elastic, while demand for ACH debit is inelastic. The difference most likely arises from high customer resistance to automatic payment deduction and from low market penetration of that service among companies. Demand for origination was found to be somewhat more elastic than demand for receipt. We then examined how volume growth initiated by a price cut affected unit costs. Given the relatively large scale economies found for ACH, volume growth leads to lower unit costs. However, to outweigh revenue lost as a result of a price decline, ACH volume would have to increase by an amount greater than our estimates indicate is likely. Consequently, a decline in per-item ACH fees would likely lead to lower net revenues.
  note: by Joanna Stavins and Paul W. Bauer.
  note: "October 1997."
  note: Includes bibliographical references (pages 25-26).
  subject:
    topic: Clearinghouses (Banking)
  subject:
    topic: Federal Reserve banks
  related item:
    title info:
      title: Working paper series (Federal Reserve Bank of Boston) ; no. 97-6
  identifier: http://www.bos.frb.org./economic/wp/wp1997/wp97_6.pdf
  related item:
    location:
      url: http://www.bos.frb.org./economic/wp/wp1997/wp97_6.pdf
  record info:
    record content source: RF1
    record creation date: 971029
    record change date: 20151020061957.0
    record identifier: in00001418673