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on Payment Systems and Financial Technology |
| By: | Mariotto, Carlotta; Verdier, Marianne |
| Abstract: | Over the recent years, the development of Internet banking and mobile banking has had a considerable impact on competition in the retail banking industry. In some countries, the regulatory framework has been adapted to allow non-banks to operate in retail payments and compete with banks for deposits. Several platforms or large retailers have started to offer innovative financial products to their customers. In this paper, we survey the issues related to innovation and competition in Internet banking and mobile banking and discuss some perspectives for future research. |
| Keywords: | bank competition, bank regulation, non-banks, payment systems, Internet banking, mobile banking, platform markets |
| JEL: | E42 G21 L96 |
| Date: | 2015–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_023&r=pay |
| By: | Ali, S. Nageeb (Pennsylvania State University); Benabou, Roland (Princeton University) |
| Abstract: | We analyze the costs and benefits of using social image to foster virtuous behavior. A Principal seeks to motivate reputation-conscious agents to supply a public good. Each agent chooses how much to contribute based on his own mix of public-spiritedness, private signal about the value of the public good, and reputational concern for appearing prosocial. By making individual behavior more visible to the community the Principal can amplify reputational payoffs, thereby reducing free-riding at low cost. Because societal preferences constantly evolve, however, she knows only imperfectly both the social value of the public good (which matters for choosing her own investment, matching rate or legal policy) and the importance attached by agents to social esteem and sanctions. Increasing publicity makes it harder for the Principal to learn from what agents do (the "descriptive norm") what they really value (the "prescriptive norm"), thus presenting her with a tradeoff between incentives and information aggregation. We derive the optimal degree of privacy/publicity and matching rate, then analyze how they depend on the economy's stochastic and informational structure. We show in particular that in a fast-changing society (greater variability in the fundamental or the image-motivated component of average preferences), privacy should generally be greater than in a more static one. |
| Keywords: | social norms, privacy, transparency, incentives, esteem, reputation, shaming punishments, conformity, societal change, culture |
| JEL: | D62 D64 D82 H41 K42 Z13 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9947&r=pay |
| By: | Hiromi Yamaoka (Bank of Japan); Akihiko Watanabe (Bank of Japan); Chiharu Takeuchi (Bank of Japan) |
| Abstract: | In designing payment systems, it is necessary to address how legal and institutional frameworks incentivize economic entities, and how their payment activities influence the safety and efficiency of overall systems as well as financial stability and market developments. Such studies and analyses are becoming all the more important in line with progress in information technology and payment innovation. In particular, we need to design a framework that continuously moves payments forward without causing gridlock or unwinding, since smooth payment flows are critical especially when highly-frequent transactions are processed back-to-back. We should also pay careful attention to network externalities and systemic risks. Information security is also a key issue, regardless of whether payments are processed in a centralized or decentralized manner. |
| Date: | 2016–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojrev:rev16e04&r=pay |
| By: | Albert, Jose Ramon G.; Serafica, Ramonette B.; Lumbera, Beverly T. |
| Abstract: | In the past one and a half decades, the world has vastly changed economic transactions, data sharing, and the entire general way of life given the dynamic and innovative landscape brought about by information and communications technologies (ICT). This paper first describes the deluge of digital data known as Big Data and its potentials for generating socioeconomic statistics given issues of veracity and privacy. It also gives a brief history of the Internet in the Philippines and discusses the increased Internet access and usage in the country. Other ICT statistics that describe a host of issues regarding the ICT sector, particularly infrastructure and the policy environment, are also examined. Finally, the paper provides some suggestions on how the country can make its digital dividends more inclusive. |
| Keywords: | Philippines, information and communications technology (ICT), Internet, digital dividends, Big Data, social media, veracity, privacy |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:rpseri:dp_2016-16&r=pay |
| By: | Kai-Lung Hui (Department of Information Systems, Business Statistics, and Operations Management, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology); James Kwok (Department of Information Systems, Business Statistics, and Operations Management, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology) |
| Abstract: | Kai-Lung Hui and James Kwok, Professor and Associate Professor in HKUST’s Information Systems, Business Statistics, and Operations (ISOM) Department, examine digital copyright infringement in developing economies, and propose 3 simple-yet-effective ways to combat copyright infringement through the use of search engine de-listing policies. |
| Keywords: | piracy, copyright infringement, emerging markets, de-listing, de-indexing, search engines |
| JEL: | G28 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:hku:briefs:201612&r=pay |
| By: | Guo, Jianxin; Jin, Songqing; Zhang, Junfeng |
| Abstract: | This paper identify the factors influencing farmers’ decision on adoption and intensity of new ICT-based service application using household survey data of 712 randomly selected farmer households in 54 villages from 3 districts in suburban Beijing in 2014. Dichotomous probability model and count data model are applied to measure the factors influencing farmers' decision and the adoption intensity. The study reveals that the farmers’ educated level, transferred employment status and the perceived of usefulness and easiness of the application have significant positive influence on their adoption decision and intensity, however, the factors affecting the adoption decision are not exactly the same as those of adoption intensity. The rural informatization extension methods have little influence on farmers’ adoption of ICT-based services. To strengthen the integration of agriculture and "Internet +", different training and extension programs that promote farmers to adopt the internet and other ICT-based services are needed in order for farmers to be able to benefit from the development of the “Internet + Agriculture”. |
| Keywords: | “Internet+”, Farmer, Adoption Decision, Count Data Model, Community/Rural/Urban Development, Institutional and Behavioral Economics, Teaching/Communication/Extension/Profession, |
| Date: | 2016–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235478&r=pay |
| By: | Kochanova,Anna; Hasnain,Zahid; Larson,Bradley Robert |
| Abstract: | Using a cross-country data set on e-government systems, this paper analyzes whether e-filing of taxes and e-procurement adoption improves the capacity of governments to raise and spend resources through the lowering of tax compliance costs, improvement of public procurement competitiveness, and reduction of corruption. The paper finds that information and communications technology can help improve government capacity, but the impact of e-government varies by type of government activity and is stronger in more developed countries. Implementation of e-filing systems reduces tax compliance costs as measured by the number of tax payments, time required to prepare and pay taxes, likelihood and frequency of firms being visited by a tax official, perception of tax administration as an obstacle, and incidence of bribery. The effects of e-procurement are weaker, with the number of firms securing or attempting to secure a government contract increasing with e-procurement implementation only in countries with higher levels of development and better quality institutions. The paper finds no systematic relationship between e-procurement and bureaucratic corruption. |
| Keywords: | Debt Markets,E-Business,Taxation&Subsidies,E-Government |
| Date: | 2016–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7657&r=pay |
| By: | Susan Ariel Aaronson (Department of Economics/Institute for International Economic Policy, George Washington University) |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:gwi:wpaper:2016-7&r=pay |
| By: | Zhu, Heng |
| Abstract: | The usage and impact of remittances on rural development is a key research topic in the migration literature. A rather peculiar observation is that many migrants send money frequently, a method which can be very costly since the majority of transactions involve fixed costs. Most studies revolving around this topic focus on the volume of money that migrants send in a given timeframe, paying less attention to the frequency which the funds are actually sent and the role played by transactions costs. This research proposes a more nuanced approach of examining the impacts of remittances on household behavior by incorporating information on the frequency at which funds are received. It is hypothesized that frequent, regular remittances help households smooth their consumption over time and impact the savings, investment and consumption behavior differently compared to alternative methods. Additionally, remittance patterns driven by specific needs of the household are also likely to respond in heterogeneous ways when faced with changes in transactions costs. |
| Keywords: | International Development, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235561&r=pay |
| By: | Michael Bailey; Ruiqing Cao; Theresa Kuchler; Johannes Stroebel |
| Abstract: | We document that the recent house price experiences within an individual’s social network affect her perceptions of the attractiveness of property investments, and through this channel have large effects on her housing market activity. Our data combine anonymized social network information from Facebook with housing transaction data and a survey. We first show that in the survey, individuals whose geographically-distant friends experienced larger recent house price increases consider local property a more attractive investment, with bigger effects for individuals who regularly discuss such investments with their friends. Based on these findings, we introduce a new methodology to document large effects of housing market expectations on individual housing investment decisions and aggregate housing market outcomes. Our approach exploits plausibly-exogenous variation in the recent house price experiences of individuals’ geographically-distant friends as shifters of those individuals’ local housing market expectations. Individuals whose friends experienced a 5 percentage points larger house price increase over the previous 24 months (i) are 3.1 percentage points more likely to transition from renting to owning over a two-year period, (ii) buy a 1.7 percent larger house, (iii) pay 3.3 percent more for a given house, and (iv) make a 7% larger downpayment. Similarly, when homeowners’ friends experience less positive house price changes, these homeowners are more likely to become renters, and more likely to sell their property at a lower price. We also find that when individuals observe a higher dispersion of house price experiences across their friends, this has a negative effect on their housing investments. Finally, we show that these individual-level responses aggregate up to affect county-level house prices and trading volume. Our findings suggest that the house price experiences of geographically-distant friends might provide a valid instrument for local house price growth. |
| JEL: | D12 D14 D84 G12 R21 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22258&r=pay |
| By: | Timothy De Stefano; Richard Kneller; Jonathan Timmis |
| Abstract: | A recent literature has begun to recognise that ICT is heterogeneous and the effects from improving communication are distinct from those that improve the storage and processing of information. In this paper we use the arrival of a new communication technology, ADSL broadband internet, to study the effects of communication ICT on firm performance. To do so free from endogeneity bias, we construct instruments using the infrastructure underlying broadband internet - the pre-existing telephone network. We show that, after placing various restrictions on the sample, instruments based on the timing of ADSL broadband enablement and the cable distance to the local telephone exchange satisfy the conditions for instrument relevancy and validity for some types of ICT. We find in turn, that communication-ICT causally affects firm size (captured by either sales or employment) but not productivity. |
| Keywords: | ICT, firms, instrumental variable JEL codes: D22, D24, O3 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:not:notecp:16/01&r=pay |
| By: | Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) |
| Abstract: | Aid for Trade (AfT) to the Pacific is an important enabler of the private sector. Trade costs in the Pacific have been falling but remain high, and continue to constrain SME growth. The development of niche product exports and the use of e-commerce (especially for women-led firms) have allowed for Pacific economy exporters to overcome these difficulties and increase trade primarily with Asia. |
| Keywords: | aid for trade, aft, trade and industry, alisa di caprio, asia, pacific, pacific trade, e-commerce, trade costs, export, niche exports, niche marketing, digital economy, smes, ict, economic infrastructure, regional connectivity, internet connectivity, mobile connectivity, women-led firms |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:abf157681-2&r=pay |