Working Paper
The effect of pricing on demand and revenue in Federal Reserve ACH payment processing
Bauer, Paul W.; Stavins, Joanna (1997)
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 ...
Working Papers , Paper 97-6

Report
Altered states: a perspective on 75 years of state income growth
Bauer, Paul W.; Shane, Scott; Schweitzer, Mark E. (2005)
According to a study featured in the Federal Reserve Bank of Cleveland's 2005 Annual Report, differences in state income levels can be explained largely by two factors: innovation and workforce skills. The study's findings suggest that increasing a region's knowledge base should be a primary component of economic development strategies.
Annual Report

Journal Article
The sectoral and regional effects of oil shocks: who's over a barrel?
Bauer, Paul W.; Byrne, Susan M. (1991-01)
An examination of how higher-priced oil affects various regions and business sectors, citing evidence that the oil shock accompanying Iraq's invasion of Kuwait will have a smaller impact on the overall U.S. economy than that of previous shocks.
Economic Commentary , Issue Jan

Journal Article
When is checkout time?
Bauer, Paul W. (2004-09)
The death of paper checks has been predicted since the 1960s, but only recently has their use begun to decline. The end may be near, though, as two forces accelerate the trend away from checks: the growing acceptance of electronic payment instruments and the passage of legislation designed to reduce our reliance on paper checks.
Economic Commentary , Issue Sep

Journal Article
Regional variation in job creation and destruction
Bauer, Paul W.; Lee, Yoonsoo (2007-09)
As companies and consumers adapt to a changing marketplace, jobs are eliminated and new ones are created. Rates at which this happens vary across states and reflect the flexibility of the labor market. More flexible markets are associated with faster growth.
Economic Commentary , Issue Sep

Journal Article
Productivity gains: how permanent?
Bauer, Paul W.; Jensen, Jeffrey L.; Schweitzer, Mark E. (2001-09)
This Economic Commentary confirms that productivity growth has been unusually robust over the last few years and explores reasonable assumptions about the likely future pattern of productivity growth. These assumptions can generate substantially different productivity growth paths. Government forecasts, which guide the major tax and benefit programs, have been increased in recent years yet remain cautious.
Economic Commentary , Issue Sep

Journal Article
Are consumers cashing out?
Bauer, Paul W.; Littman, Daniel A. (2007-10)
The information age has led to many new forms of payment, including credit cards, debit cards, and online banking. In many ways, these new mechanisms seem preferable to cash. While the disappearance of cash is a very long way off, it seems people are starting to use it less.
Economic Commentary , Issue Oct

Journal Article
A beginner's guide to the U.S. payments system
Bauer, Paul W. (1994-07)
A description of the U.S. payments system, outlining its evolution and examining some of the areas where improvements are needed.
Economic Commentary , Issue Jul

Journal Article
Consumer financial privacy and the Gramm-Leach-Bliley Act
Bauer, Paul W. (2002-03)
By requiring financial institutions to put adequate controls in place to secure consumers? confidential data and by clearly spelling out what rights consumers and financial institutions have, the 1999 Gramm-Leach-Bliley Act is a positive step toward ensuring consumer financial privacy. If there are no market imperfections, then competition may be relied on to efficiently sort out the competing interests of consumers and financial institutions. Alternatively, if there are market imperfections in the form of externalities, the Coase theorem suggests that the act, by clearly assigning property ...
Economic Commentary , Issue Mar

Journal Article
What you should know about identity theft
Bauer, Paul W. (2002-09)
Identity theft?appropriating someone else?s identity for illicit gain?is the fastest-growing financial crime. It can cause considerable financial losses, and cleaning up a trashed credit history can be time consuming and frustrating. This Economic Commentary examines the identity theft phenomenon?how it works, how lawmakers, regulators, and financial institutions are combating it, and what consumers can do to protect themselves.
Economic Commentary , Issue Sep