Testing Baumol-Tobin Model Toward Millennials in Palembang City

DOI

10.2991/aebmr.k.200520.005How to use a DOI?

Keywords

Baumol-Tobin model, demand for money, millennials

Abstract

Financial innovations can affect extensive and intensive money demand margins. A wide margin proportion of total expenditure is made using cash. To what extent financial innovation changes the behavior of individual money demand is the question. This research will test Baumol-Tobin hypothesis by using individual data. The aim of this study is to analyze millennials’behavior in Palembang city in distributing their income based on the motives of holding cash from Baumol-Tobin, proving the Baumol-Tobin hypothesis regarding the factors that influence demand for cash. The population in this study is millennials living in Palembang. The method used is Ordinary Least Square (OLS). The result shows that the Baumol-Tobin model does not apply to millennials in Palembang city. Ownership of financial assets does not significantly influence the money demand for millennials. While the education, marital status, and income affect the money demand in Palembang City.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sri Andaiyani
AU  - Saadah Yuliana
AU  - Fida Muthia
PY  - 2020
DA  - 2020/05/23
TI  - Testing Baumol-Tobin Model Toward Millennials in Palembang City
BT  - Proceedings of the 5th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2019)
PB  - Atlantis Press
SP  - 24
EP  - 27
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200520.005
DO  - 10.2991/aebmr.k.200520.005
ID  - Andaiyani2020
ER  -