Examining the Effects of Elimination of a Coin Denomination in Thailand
SENIOR RESEARCH Topic: Examining the effects of elimination of a coin denomination in Thailand NAME: Metapon Amorntirasan ID: 524 58874 29 Advisor: SittidajPongkijvorasin, Ph.D Date: January 20, 2013 Senior Research Submitted in Partial Fulfillment of the Requirements for the Bachelor of Arts degree in Economics (International Program) The Bachelor of Arts Program in Economics Faculty of Economics Chulalongkorn University Academic year 2012 Approved _________________________________________ (Assoc.Prof. Sothitorn Mallikamas,Ph.D.,) Chairman Date of Approval __________________________ Senior Research Title: Examining the effects of elimination of a coin denomination in Thailand Researcher: Metapon Amorntirasan Senior Research Advisor: SittidajPongkijvorasin, Ph.D Academic year: 2012
Abstract
Small coin denominations, such as 25-satang and 50-satang coins, are becoming less significant due to inflation and other factors. The paper applies the costs-benefit analysis to the removal of these coins. The main topics that the paper will analyze on are increase in consumer spending due to price rounding, seigniorage, and monetized time. In addition, the survey focusing on the public behavior and value on the coin is used. The result has shown a negative number for all scenarios simulated. This implies that none of the coin should be eliminated at the moment. The past data also shows that policy maker has done well to minimize the cost of production by changing the specification of the coin. The survey result has shown that older people tends to oppose more on the elimination of the satang coins.
Table of Content
Introduction……………………………………………………………………………..…………3 Literature Review……………………………………………………………………..…………..8 Data………………………………………………………………………………………………12 Methodology…………………………………………………………………………………..…19 Results……………………………………………………………………………………………25 Conclusion…………………………………………………………………………………….…34 References……………………………………………………………………………………..…36
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Introduction
Abstract
Small coin denominations, such as 25-satang and 50-satang coins, are becoming less significant due to inflation and other factors. The paper applies the costs-benefit analysis to the removal of these coins. The main topics that the paper will analyze on are increase in consumer spending due to price rounding, seigniorage, and monetized time. In addition, the survey focusing on the public behavior and value on the coin is used. The result has shown a negative number for all scenarios simulated. This implies that none of the coin should be eliminated at the moment. The past data also shows that policy maker has done well to minimize the cost of production by changing the specification of the coin. The survey result has shown that older people tends to oppose more on the elimination of the satang coins.
Table of Content
Introduction……………………………………………………………………………..…………3 Literature Review……………………………………………………………………..…………..8 Data………………………………………………………………………………………………12 Methodology…………………………………………………………………………………..…19 Results……………………………………………………………………………………………25 Conclusion…………………………………………………………………………………….…34 References……………………………………………………………………………………..…36
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Introduction
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