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on Payment Systems and Financial Technology |
| By: | Ahamadou MAICHANOU |
| Abstract: | This article focuses on borrowers default in rural credit in Niger, according to their food needs situation. Given that economic agents are likely to adopt opportunistic behavior rather than mutually beneficial relations when facing natural hazards, this analysis is taken from the perspective of contract theory with asymmetric information. In the case of rural Niger, it empirically addresses the determinants of involuntary default, voluntary default and repayment effort, while managing the difficulties of applying the concepts of information economy and uncertainty to the complexity of rural area credit in a developing country. Results show more involuntary default than voluntary one and a real willing to repay. These results make us to provide support for households with effort repayment willing and establish an incentives structure for all kind of borrowers. |
| Keywords: | Contract, credit, risk of default, asymmetry of information, rural, Niger |
| JEL: | D13 D86 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2016-05&r=pay |
| By: | Farley Grubb |
| 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. |
| JEL: | E42 E51 G12 H60 N12 N22 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21881&r=pay |
| By: | Arango, Carlos; Bouhdaoui, Yassine; Bounie, David; Eschelbach, Martina; Hernandez, Lola |
| Abstract: | Despite various payment innovations, today, cash is still heavily used to pay for low-value purchases. This paper proposes a simulation model based on two optimal cash management and payment policies in the payments economics literature to explain cash usage. First, cash is preferred to other payment instruments whenever consumers have enough balances at hand. Second, it is optimal for consumers to hold a stock of cash for precautionary reasons. Exploiting survey payment diaries from Canada, France, Germany and the Netherlands, the results of the simulations show that both optimal policies are well suited to understand the high shares of low-value cash payments in Canada, France and Germany. Yet, they do not perform as well in the case of the Netherlands, overestimating the share of low-value cash payments. We discuss how the differences in payment markets across countries may explain the limitations of the two optimal policies. |
| Keywords: | cash management, payment choices, international comparison |
| JEL: | C61 E41 E47 |
| Date: | 2015–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:urn:nbn:fi:bof-201511251450&r=pay |
| By: | Premm Raj H.; Ranganathan, Kavitha |
| Abstract: | Government interventions on usage of free speech for communication has been rising of late. The government of Iraq’s ban on the Internet, ban of mobile communications in Hong Kong student protests highlight the same. Applications like Firechat which use mobile ad hoc networks (MANETs) to enable off the grid communication between mobile users, have gained popularity in these regions. However, there have been limited studies on selfish user behavior in community data sharing networks. We wish to study these data sharing communities using game theoretic principles and propose a normal form game. We model selfishness in community data sharing MANETs and define the rationality for selfishness in these networks. We also look at the impact of altruism in community data sharing MANETs and address the issue of minimum number of altruistic users needed to sustain the MANET. We validate the novel model using exhaustive simulations and empirically derive important observations. |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:14425&r=pay |
| By: | Bertschek, Irene; Ohnemus, Jörg |
| Abstract: | Customised products and services, flexible working arrangements, productivity growth, and increasing prosperity - these are just some of the advantages promised by a digitised and connected economy. Business managers and politicians are keen to reap the potential benefits of the digital transformation. Such a transformation of the economy, however, is a complex task which goes hand in hand with a significant number of challenges. Digital transformation brings about changes in production and innovation processes, in markets and working environments, and also has societal implications. In particular, there are widespread fears that the increased use of machines and robots for tasks previously completed by humans shall result in job losses. Actors at both European and national levels have launched numerous agendas, initiatives and directives in order to support the digital transformation. The Digital Agenda, part of the Europe 2020 Strategy consists of seven pillars (EU Commission, 2016a): i) Digital Single Market, ii) Interoperability & Standards, iii) Trust & Security, iv) Fast and ultra-fast Internet access, v) Research and innovation, vi) Enhancing digital literacy, skills and inclusion, vii) ICT-enabled benefits for EU society. These seven pillars comprise 132 actions ranging from simplifying Pan-European licensing for online works (action 1), to investing in High-Performance Computing (action 132). |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:22016&r=pay |
| By: | Cobus Vermeulen, Adél Bosch, Fanie Joubert and Jannie Rossouw |
| Abstract: | The money supply can be broadly defined as consisting of currency and deposits. While currency forms but a small portion of the total money supply, it can be a crucial determinant of spending behaviour and subsequently economic activity. The ability of the money supply to predict an up- or downswing in economic activity, as measured by a positive or negative output gap, is evaluated over a sample period 1980 – 2012. Two models are estimated, one using only the currency component and a second using the total money supply (M3). It is found that the growth rate of real currency in circulation is reasonably accurate in predicting economic activity 6 months ahead, whereas the total money supply can predict economic activity up to 9 months ahead. It is concluded that currency in circulation can be a valuable additional source of information to policymakers and can complement other approaches of forecasting economic activity. |
| Keywords: | Business Cycle, Output gap, currency in circulation, probit |
| JEL: | C25 E32 E37 E51 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:582&r=pay |
| By: | Lee,Hyung Chul |
| Abstract: | This paper reviews the Republic of Korea's experience with electronic tax invoices for its value-added tax regime from the perspectives of tax policy makers and administrators. The paper evaluates Korea's implementation of electronic tax invoicing and analyzes its effect on tax compliance through enhanced transparency of business transactions and taxpayer services. First implemented in 2011, mandatory electronic tax invoicing has been credited with lowering tax compliance costs and raising the transparency of business transactions. Effective policy design and implementation have contributed to the country's success with electronic tax invoicing. Measured in transaction value, the electronic tax invoice adoption rate reached 99.8 percent in the first year and rose to 99.9 percent by 2013, compared with 15 percent before electronic tax invoicing became mandatory. According to a survey of taxpayers and tax practitioners in Korea that was conducted as part of this research study, 69.4 percent of the respondents agreed or strongly agreed that mandatory electronic tax invoicing has contributed to curbing value-added tax evasion by raising transaction transparency, and 72.9 percent agreed or strongly agreed that it has improved taxpayer service by facilitating the convenience of tax filing or automating the issuance of invoices. The review of Korea's experiences gives credence to the contention that well-planned and well-executed compulsory electronic tax invoices can materially enhance tax compliance through significant institutional and perceptual changes in tax administration. |
| Keywords: | Debt Markets,E-Business,Tax Law,Taxation&Subsidies,Emerging Markets |
| Date: | 2016–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7592&r=pay |
| By: | Jo Michell (University of the West of England) |
| Abstract: | The rise of the shadow banking system is viewed throught the lens of Graziani's Monetary Theory of Production. Graziani's categories of 'initial finance' and 'final finance' are used to analyse the new forms of credit created in the shadow banking sector. It is argued that the accumulation of leverage in the shadow banking system and the creation of credit money by the traditional banking sector are symbiotic processes. While Graziani's triangular debtor-bank-creditor relationship remains central, the circuit operates in a perverse form in which household debt is stored on the balance sheets of shadow banks, allowing the banking system to break the historical connection between money creation and productive activity. |
| Keywords: | monetary circuit, endogenous money, shadow banking, financialization, Graziani |
| JEL: | E12 E40 G21 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1605&r=pay |
| By: | Jasiewicz, Justyna; Filiciak, Mirosław; Mierzecka, Anna; Śliwowski, Kamil; Klimczuk, Andrzej; Kisilowska, Małgorzata; Tarkowski, Alek; Zadrożny, Jacek |
| Abstract: | Operational Programme Digital Poland - "Priority axis III: Digital competences of the society" focuses on raising digital activity in order to allow fully use possibilities of high-speed Internet and new public e-services. It comprises four actions including Training activities for development of digital competences with allocation of 180 mln PLN (divided into two competitions dedicated to NGOs). The point of reference for all the projects of the axis III is a document named The framework catalogue of digital competences. An important assumption of the catalogue is the connection between the digital competences and the users' needs and the benefits that they may gain in the key areas of life. The document, commissioned by the Ministry of Administration and Digitization, is of vital importance in the implementation of the new model in recognizing digital competences- the relational model. |
| Keywords: | Employability Skills,Digital Competences,Digital Skills and Litearacy,Digital Economy |
| JEL: | I20 J24 L86 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:128611&r=pay |
| By: | Byrne, David M. (Board of Governors of the Federal Reserve System (U.S.)); Reinsdorf, Marshall B. (International Monetary Fund); Fernald, John G. (Federal Reserve Bank of San Francisco) |
| Abstract: | After 2004, measured growth in labor productivity and total-factor productivity (TFP) slowed. We find little evidence that the slowdown arises from growing mismeasurement of the gains from innovation in IT-related goods and services. First, mismeasurement of IT hardware is significant prior to the slowdown. Because the domestic production of these products has fallen, the quantitative effect on productivity was larger in the 1995-2004 period than since, despite mismeasurement worsening for some types of IT--so our adjustments make the slowdown in labor productivity worse. The effect on TFP is more muted. Second, many of the tremendous consumer benefits from smartphones, Google searches, and Facebook are, conceptually, non-market: Consumers are more productive in using their nonmarket time to produce services they value. These benefits do not mean that market-sector production functions are shifting out more rapidly than measured, even if consumer welfare is rising. Still, gains in non-market production appear too small to compensate for the loss in overall wellbeing from slower market-sector productivity growth. Third, other measurement issues we can quantify (such as increasing globalization and fracking) are also quantitatively small relative to the slowdown. Finally, we suggest high-priority areas for future research. |
| Keywords: | Information technology; Measurement; Non-market production; Prices; Productivity |
| Date: | 2016–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2016-17&r=pay |