nep-ict 2017-06-18 papers

on Information and Communication Technologies

Issue of 2017‒06‒18
two papers chosen by
Walter Frisch
Universität Wien

Technology-driven information sharing and conditional financial development in Africa By Asongu, Simplice; Anyanwu, John; Tchamyou, Vanessa
The Digital Privacy Paradox: Small Money, Small Costs, Small Talk By Susan Athey; Christian Catalini; Catherine Tucker

Technology-driven information sharing and conditional financial development in Africa

By:	Asongu, Simplice; Anyanwu, John; Tchamyou, Vanessa
Abstract:	Information technology is increasingly facilitating mechanisms by which information asymmetry between lenders and borrowers in the financial sector can be reduced in order to enhance financial access for human and economic development in developing countries. We examine conditional financial development from ICT-driven information sharing in 53 African countries for the period 2004-2011, using contemporary and non-contemporary quantile regressions. ICT is measured with mobile phone penetration and internet penetration whereas information sharing offices are public credit registries and private credit bureaus. The following findings are established. First, there are positive effects with positive thresholds from ICT-driven information sharing on financial depth (money supply and liquid liabilities) and financial activity (at banking and financial system levels). Second, for financial intermediation efficiency, the positive effects from mobile-driven information sharing are apparent exclusively in certain levels of financial efficiency. Third, with regard to financial size, mobile-driven information sharing is positive with a negative threshold, whereas, internet-driven information sharing is positive exclusively among countries in the bottom half of financial size. Positive thresholds are defined as decreasing negative or increasing positive estimated effects from information sharing offices and vice-versa for negative thresholds. Policy implications are discussed.
Keywords:	Information Sharing; Financial Development; Quantile regression
JEL:	C52 G20 G29 O16 O55
Date:	2017–01
URL:	http://d.repec.org/n?u=RePEc:pra:mprapa:79640&r=ict

The Digital Privacy Paradox: Small Money, Small Costs, Small Talk

By:	Susan Athey; Christian Catalini; Catherine Tucker
Abstract:	'Notice and Choice' has been a mainstay of policies designed to safeguard consumer privacy. This paper investigates distortions in consumer behavior when faced with notice and choice which may limit the ability of consumers to safeguard their privacy using field experiment data from the MIT digital currency experiment. There are three findings. First, the effect small incentives have on disclosure may explain the privacy paradox: Whereas people say they care about privacy, they are willing to relinquish private data quite easily when incentivized to do so. Second, small navigation costs have a tangible effect on how privacy-protective consumers' choices are, often in sharp contrast with individual stated preferences about privacy. Third, the introduction of irrelevant, but reassuring information about privacy protection makes consumers less likely to avoid surveillance, regardless of their stated preferences towards privacy.
JEL:	C93 D62 D8 K10 O3 O31 O38
Date:	2017–06
URL:	http://d.repec.org/n?u=RePEc:nbr:nberwo:23488&r=ict

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