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Table 1 Long-run relations based on cointegrating regression (DOLS) for groups of banknote denominations

From: The demand for Swiss banknotes: some new evidence

Variable Large   Medium   Small
Real GDP \(\underset {\left [0.06\right ]}{\!\:1.29^{***}}\)   \(\underset {\left [0.11\right ]}{0.33^{***}}\)   \(\underset {\left [0.06\right ]}{0.27^{***}}\)
Gov. bond yield \(\underset {\left [0.02\right ]}{-\thinspace 0.05^{**}}\)   \(\underset {\left [0.04\right ]}{0.02}\)   \(\underset {\left [0.02\right ]}{-\thinspace 0.03^{*}}\)
Exchange rate \(\underset {\left [0.18\right ]}{-\thinspace 0.65^{***}}\)   \(\underset {\left [0.34\right ]}{-\thinspace 0.15}\)   \(\underset {\left [0.18\right ]}{0.20}\)
Real debit card paym. \(\underset {\left [0.01\right ]}{-\thinspace 0.04^{***}}\)   \(\underset {\left [0.01\right ]}{-\thinspace 0.03^{***}}\)   \(\underset {\left [0.01\right ]}{-\thinspace 0.02^{***}}\)
No. of checks \(\underset {\left [0.00\right ]}{-\thinspace 0.01^{**}}\)   \(\underset {\left [0.01\right ]}{-\thinspace 0.03^{***}}\)   \(\underset {\left [0.00\right ]}{-\thinspace 0.02^{***}}\)
Adj. R2 0.99   0.82   0.87
Phillips-Ouliaris τ-test − 4.86   − 2.40   − 3.21
Hansen test 0.03   0.02   0.02
  1. *, **, *** indicates significance at the 10%, 5%, and 1% levels, respectively. A constant is included. Phillips-Ouliarisτ -test is a cointegration test with null hypothesis of no cointegration, while Hansen test is a cointegration test with null hypothesis of cointegration. The dependent variables are the real value in circulation of each group of denominations, deflated by the CPI; large denotes the sum of CHF 1000, 500, and 200, medium denotes the sum of CHF 100 and 50, while small denotes the sum of CHF 20, 10, and 5. The sample period runs from 1950 to 2017. Data are from the Swiss National Bank, the BIS, and Historical Statistics of Switzerland Online (HSSO). The CHF 1000, CHF 500, CHF 100, and CHF 50 banknotes were first issued in 1907, the CHF 20 and CHF 5 bills were introduced in 1914. The issuance of the CHF 5 was suspended in 1958 after the introduction of the CHF 10 bill in 1956. The CHF 500 was replaced by the CHF 200 note in 1997