nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒01‒29
eight papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. To Switch or Not to Switch Payment Scheme? Determinants and Effects in a Bargaining Game By Arianna Galliera; Noemi Pace
  2. Driver of choice? the cost of financial products for unbanked consumers By Hayashi, Fumiko; Hanson, Josh; Maniff, Jesse Leigh
  3. Enterprise App Adoption: An investigation of the key factors that affect the adoption of mobile apps by Commercial Bankers at a financial services organisation By Livingston, James
  4. Analysis of impact of rural development subsides on cropping specialization in Bulgaria and Romania using FADN data By GALLUZZO, NICOLA
  5. Analysis of the economic behaviour of financial organisations By Janusz J. Tomidajewicz
  6. "Colonial Virginia's Paper Money Regime, 1755-1774: Value Decomposition and Performance" By Farley Grubb
  7. Microfinance and ecosystems conservation How green microfinance interacts with Socio- Ecological systems Lessons from Proyecto CAMBio in Nicaragua and Guatemala By Davide Forcella; Guja Lucheschi
  8. Innovator Mobility in Finland and Denmark By Bagger, Jesper; Maliranta, Mika; Määttänen, Niku; Pajarinen, Mika

  1. By: Arianna Galliera (Department of Economics, University Of Venice Cà Foscari); Noemi Pace (Department of Economics, University Of Milan, Bicocca)
    Abstract: The incentive scheme selected in a laboratory experiment might trigger different type of behavior in participants. This paper is an attempt to screen the strategies adopted by agents in a bargaining game when buyer and seller have partly conflicting interests and are asymmetrically informed. We allow participants to choose the incentive scheme through which they will be paid at the end of the experiment controlling for past experience and individual characteristics. It is well known that payment method is highly correlated to the risk preferences shown by individuals, but little research is devoted to the analysis of the behavior induced by Random Lottery Incentive scheme (RLI for short) and Cumulative Scheme payment (CS for short) both on individual and social results. This paper aims to fill the gap.
    Keywords: bargaining, experiment, gender, payment scheme.
    JEL: C78 C91 D82 J16 J33
    Date: 2015
  2. By: Hayashi, Fumiko (Federal Reserve Bank of Kansas City); Hanson, Josh (Federal Reserve Bank of Kansas City); Maniff, Jesse Leigh (Federal Reserve Bank of Kansas City)
    Abstract: This paper examines whether some of the unbanked consumers' choice of general purpose reloadable (GPR) prepaid cards over checking accounts and alternative financial service (AFS) products can be explained by the cost incurred by those consumers. We compare the three types of products by constructing consumer models based on the actual behavior of GPR prepaid cardholders and applying those models to the fee schedules of actual products offered in the market. Overdrafts are a major factor affecting the cost rankings. For consumers who regularly or occasionally overdraw their accounts, checking accounts are more costly than GPR cards or AFS products. In contrast, for consumers who do not need overdraft capability and short-term credit, GPR cards are more costly than checking accounts. The cost difference across the products clearly explains the former type of consumers' choice of financial products, while it does not explain the latter type of consumers' choice.
    Keywords: General purposes reloadable prepaid cards (GPR); Checking accounts; Alternative financial services (AFS); Overdraft; Unbanked
    JEL: D12 E42 G21
    Date: 2015–11–01
  3. By: Livingston, James
    Abstract: The purpose of this study is to examine the key factors that affect the adoption of mobile enterprise applications by Commercial Bankers. A review of technology acceptance literature relating to mobile apps for employees found that there was a lack of qualitative studies in this area. A phenomenological approach was used for this qualitative research. Ten semi-structured interviews were conducted to deeply explore the participants' point of view, feelings and perspectives about mobile apps. The findings of the interviews confirmed three key advantages to using mobile apps as part of the participant’s employment: time saving, better customer conversations and faster decision-making. The data analysis isolated five key barriers: poor quality data, perceived value, ease of use, reduced customer understanding and mobile devices characteristics. Organisations wishing to speed the adoption of mobile apps by their employees should evaluate the importance and significance of these five identified barriers to adoption, and plan how to overcome them.
    Keywords: Technology adoption, Enterprise mobility, Organisational change,
    Date: 2015
    Abstract: Bulgaria and Romania are characterized by a higher percentage incidence of rural population than other European nations and a significant diffusion of less favoured areas with limited agricultural surfaces as well. The objective of this paper was to investigate, via a quantitative approach, effects and relationships among funds allocated by the second pillar of the Common Agricultural Policy on cropping specialization. Furthermore, subsidies and other financial supports assigned by specific agricultural and rural policies have had a positive role in areas at risk of marginalization and characterized by out migration issues. In the quantitative analysis we used the data published by the European Union in the Farm Accountancy Data Network (FADN) since 2007 to 2012. In Bulgaria, as a consequence of a greater diffusion of large size farms, the financial subsides allocated by the EU, throughout Single Area Payment Scheme and towards crops have been significant in Romania and Bulgaria. Romania has pointed out a positive impact of financial aids paid to less favoured areas in order to reduce the rural marginalization and countryside depopulation.
    Keywords: Farm Accountancy Data Network, less favored rural areas, Single Area Payment Schemes, Kohonen’s map, Agricultural and Food Policy, Community/Rural/Urban Development,
    Date: 2015
  5. By: Janusz J. Tomidajewicz (Poznan University of Economics, Department of Economic and Local Government Policy)
    Abstract: The general objective of this study is to highlight the differences in the economic behaviour of financial organisations and, in particular, in the structure and nature of financial services provided by institutions with different forms of ownership. We assume that their economic behaviour manifests itself through decisions about: selecting the type and scope of the functions performed for the real economy, determining the market segment (target customer group) for services provided and methods of and criteria for making decisions about the way to conduct financial activities. We try to determine the economic behaviour of financial entities belonging to the following ownership forms: public financial institutions, collectively-owned financial institutions and private financial institutions.
    Keywords: economic behaviour, financial institutions, ownership forms
    JEL: L33 G18 E02
    Date: 2015–07–01
  6. By: Farley Grubb (Department of Economics, University of Delaware)
    Abstract: I decompose Virginia's paper money into expected real-asset present value, risk discount, and transaction premium or "moneyness" value. The value of Virginia's paper money was determined primarily by its real-asset present value. The transaction premium was small. Positive risk discounts occurred in years when treasurer malfeasance was suspected. Virginia's paper money was not a fiat currency, but a barter asset, with just enough "moneyness" value to make it the preferred medium of exchange for local transactions. Compared with alternative models, my decomposition model of inside monies is superior conceptually and statistically for explaining the performance of American colonial paper monies.
    Keywords: asset money, bills of credit, counterfeiting, fiat currency, quantity theory of money, transaction premium, treasury notes, zero-coupon bonds
    JEL: E42 E51 H60 G12 N12 N22
    Date: 2016
  7. By: Davide Forcella; Guja Lucheschi
    Abstract: Environmental degradation is the result of complex human-environmentdynamics, often sustained by socio-economic inequalities. Recently microfinancehas been proposed to be an interesting tool to support environmental protectionstrategies that aim at once to foster rural development and promote ecosystemsconservation or adaptation to climate change.In this paper we provide one of the first analysis of the link betweenmicrofinance and ecosystems conservation. We base our analysis on theassessment of the first large-scale microfinance programme for biodiversityconservation: Proyecto CAMBio. Our empirical analysis exploits a unique set ofsecondary and primary data collected by the authors in Nicaragua andGuatemala. We introduce a theoretical framework and a practical methodology toassess such programme, and we apply it to our case studies. Even if withdifferent peculiarities, the two cases studied show that microfinance forecosystems conservation has good potentialities to introduce environmentalelements in the rural activities of small farmers and in the products provided bymicrofinance institutions, and it is an interesting path to pursue. However, theyalso underline that choices and actions of rural households and local financialintermediary institutions are strongly influenced by habits and local dominantdevelopment pathways, which are among the main causes of socio-economicinequalities and environmental degradation. Green Microfinance per se does notseem to be able to revert such dangerous dynamics while, interacting with themwithout a proactive strategy, it risks to have no effect or eventually support thecauses of environmental degradation.We then call for a renewed proactive role of green microfinance for ecosystemsthat, articulating with local actors and territorial dynamics, should aim not onlyat providing a green product to individual farmers, but instead support newalliances and collective, socially informed, actions to redirect the habits thatsupport environmental degradation towards environmentally friendly and socioeconomicinclusive rural development.
    Keywords: Microfinance; Green Microfinance; Rural Development; Payments for Environmental Services; Agricultural microfinance; Central America; Proyecto CAMBio
    JEL: Q57 Q01 O13 O15 Q12 Q14 Q15 Q23 G21
    Date: 2016–01–21
  8. By: Bagger, Jesper; Maliranta, Mika; Määttänen, Niku; Pajarinen, Mika
    Abstract: Abstract Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms with good prospects for innovation. Aggregate productivity growth requires that firms with the best prospects for innovation are quickly matched to innovators. The mobility of innovators is also important for positive knowledge spillovers to materialize. We use Finnish and Danish linked employer-employee data to study labour mobility, focusing on innovators. For Finland, Denmark is an interesting benchmark country because its labour market is generally considered very flexible. We find that overall labour mobility is significantly lower in Finland than in Denmark. However, relative to other occupation groups, innovators are actually more mobile in Finland than in Denmark. In Finland, innovators tend to cluster in firms that are among the most productive in their industry.
    Keywords: Research and development, innovation, occupational choice, labour mobility, innovator mobility, resource allocation
    JEL: J24 J62
    Date: 2016–01–13

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