From Cash to Electronic Payments: Microeconomic, Macroeconomic, and Policy Aspects of Retail Payment Systems

This dissertation explores three aspects of the economics and policy issues surrounding retail payments (low-value frequent payments): the microeconomic aspect, by measuring costs associated with retail payment instruments; the macroeconomic aspect, by quantifying the impact of the use of electronic rather than paper-based payment instruments on consumption and GDP; and the policy aspect, by identifying barriers that keep countries stuck with outdated payment systems, and recommending policy interventions to move forward with payments modernization. Payment system modernization has become a prominent part of the financial sector reform agenda in many advanced and developing countries. Greater use of electronic payments rather than cash and other paper-based instruments would have important economic and social benefits, including lower costs and thereby increased economic efficiency and higher incomes, while broadening access to the financial system, notably for people with moderate and low incomes. The dissertation starts with a general introduction on retail payments. Chapter 1 develops a theoretical model for measuring payments costs, and applies the model to Guyana—an emerging market in the midst of the transition from paper to electronic payments. Using primary survey data from Guyanese consumers, the results of the analysis indicate that annual costs related to the use of cash by consumers reach 2.5 percent of the country’s GDP. Switching to electronic payment instruments would provide savings amounting to 1 percent of GDP per year. Chapter 2 broadens the analysis to calculate the macroeconomic impacts of a move to electronic payments. Using a unique panel dataset of 76 countries across the 17-year span from 1998 to 2014 and a pooled OLS country fixed effects model, Chapter 2 finds that on average, use of debit and credit cards contribute USD 16.2 billion to annual global consumption, and USD 160 billion to overall annual global GDP. Chapter 3 provides an in-depth assessment of the Albanian payment cards and remittances market and recommends a set of incentives and regulations (both carrots and sticks) that would allow the country to modernize its payment system. Finally, the conclusion summarizes the lessons of the dissertation’s research and brings forward issues to be explored by future research in the retail payments area.

Counseling Self-Efficacy and the Relational Efficacy Model

Relation-inferred self-efficacy (RISE), a relatively new concept, is defined as a target individual’s beliefs about how an observer, often a relationship partner, perceives the target’s ability to perform certain actions successfully. Along with self-efficacy (i.e., one’s beliefs about his or her own ability) and other-efficacy (i.e., one’s beliefs about his or her partner’s ability), RISE makes up a three part system of interrelated efficacy beliefs known as the relational efficacy model (Lent & Lopez, 2002). Previous research has shown this model to be helpful in understanding how relational dyads, including coach-athlete, advisor-advisee, and romantic partners, contribute to the development of self-efficacy beliefs. The clinical supervision dyad (i.e., supervisor-supervisee), is another context in which relational efficacy beliefs may play an important role. This study investigated the relationship between counseling self-efficacy, RISE, and other-efficacy within the context of clinical supervision. Specifically, it examined whether supervisee perceptions about how their supervisor sees their counseling ability (RISE) related to how supervisees see their own counseling ability (counseling self-efficacy), and what moderates this relationship. The study also sought to discover the degree to which RISE mediated the relationship between supervisor working alliance and counseling self-efficacy. Data were collected from 240 graduate students who were currently enrolled in counseling related fields, working with at least one client, and receiving regular supervision. Results demonstrated that years of experience and RISE predicted counseling self-efficacy and that the relationship between RISE and counseling self-efficacy was, as expected, moderated by other-efficacy. Contrary to expectations, however, counseling experience and level of client difficulty did not moderate the relationship between RISE and counseling self-efficacy. These findings suggest that the relationship between RISE and counseling self-efficacy was stronger when supervisees saw their supervisors as capable therapists. Furthermore, RISE was found to fully mediate the relationship between supervisor working alliance and counseling self-efficacy. Future research directions and implications for training and supervision are discussed.