Does Banknote Quality Affect Counterfeit Detection? Experimental Evidence from Germany and the Netherlands

<!>van der Horst, Frank; Eschelbach, Martina; Sieber, Susann; Miedema, Jelle

doi:10.2139/ssrn.2733531

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Does Banknote Quality Affect Counterfeit Detection? Experimental Evidence from Germany and the Netherlands

De Nederlandsche Bank Working Paper No. 499

59 Pages Posted: 17 Feb 2016

See all articles by Frank van der Horst

Jelle Miedema

De Nederlandsche Bank

There are 2 versions of this paper

Date Written: February 1, 2016

Abstract

Counterfeit prevention is a major task for central banks, as it helps to maintain public confidence in the currency. It is often maintained that a high quality of the banknotes in circulation helps the public detect counterfeits. However, there has not been any scientific evidence in support of this assertion so far. The present study is a first attempt to fill this research gap.

Keywords: banknotes, counterfeits, banknote quality, signal detection theory

JEL Classification: E40, E41, E50, E58

Suggested Citation: Suggested Citation

van der Horst, Frank and Eschelbach, Martina and Sieber, Susann and Miedema, Jelle, Does Banknote Quality Affect Counterfeit Detection? Experimental Evidence from Germany and the Netherlands (February 1, 2016). De Nederlandsche Bank Working Paper No. 499, Available at SSRN: https://ssrn.com/abstract=2733531 or http://dx.doi.org/10.2139/ssrn.2733531