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The Process of Soiling and the Life of Bank Notes in the Netherlands

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  • F. A. G. den Butter
  • R. L. Coenen

Abstract

This paper presents a statistical method for estimating probabilities of soiling and withdrawal of bank notes. The method is applied to seven circulation trials of Dutch bank notes of different denominations. The best fitting distribution for the soiling process is selected for each trial and its parameters are estimated. Then the average soiling time and the average life of the notes are calculated. A notable aspect of our analysis is that large differences with respect to the soiling process were found among notes of one and the same denomination in different circulation trials.

Suggested Citation

  • F. A. G. den Butter & R. L. Coenen, 1982. "The Process of Soiling and the Life of Bank Notes in the Netherlands," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 31(3), pages 226-237, November.
    • Handle: RePEc:bla:jorssc:v:31:y:1982:i:3:p:226-237
    DOI: 10.2307/2347996
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