nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒12‒18
five papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Distributed Ledger Technology in Payments, Clearing, and Settlement By Anton Badev; Maria Baird; Timothy Brezinski; Clinton Chen; Max Ellithorpe; Linda Fahy; Vanessa Kargenian; Kimberley Liao; Brendan Malone; Jeffrey C. Marquardt; David C. Mills; Wendy Ng; Anjana Ravi; Kathy Wang
  2. Technological Advancement and the Evolving Gender Identities: A Focus on the Level of Female Economic Participation in Sub-Saharan Africa By Uchenna Efobi; Belmondo Tanankem; Simplice Asongu
  3. "The Credit Card Debt Puzzle: The Role of Preferences, Credit Risk, and Financial Literacy" By Olga Gorbachev; María José Luengo-Prado
  4. Measuring Money Demand Function in Pakistan By Hassan, Shahid; Ali, Umbreen; Dawood, Mamoon
  5. Prices and Depreciation in the Market for Tablet Computers By David M. Byrne; Wendy E. Dunn; Eugenio P. Pinto

  1. By: Anton Badev; Maria Baird; Timothy Brezinski; Clinton Chen; Max Ellithorpe; Linda Fahy; Vanessa Kargenian; Kimberley Liao; Brendan Malone; Jeffrey C. Marquardt; David C. Mills; Wendy Ng; Anjana Ravi; Kathy Wang
    Abstract: Digital innovations in finance, loosely known as fintech, have garnered a great deal of attention across the financial industry. Distributed ledger technology (DLT) is one such innovation that has been cited as a means of transforming payment, clearing, and settlement (PCS) processes, including how funds are transferred and how securities, commodities, and derivatives are cleared and settled. DLT is a term that has been used by the industry in a variety of ways and so does not have a single definition. Because there is a wide spectrum of possible deployments of DLT, this paper will refer to the technology as some combination of components including peer-to-peer networking, distributed data storage, and cryptography that, among other things, can potentially change the way in which the storage, recordkeeping, and transfer of a digital asset is done.
    Date: 2016–12
  2. By: Uchenna Efobi (Covenant University, Nigeria); Belmondo Tanankem (Ministry of Economy, Cameroon); Simplice Asongu (Yaoundé, Cameroon)
    Abstract: This study investigates how technological advancement improves gender identity by means of female economic participation in a panel 48 African countries for the period 1990-2014. Two indicators are used to measure female economic participation, namely, the: female labour force participation and employment rates. Technological advancement is measured with three main indicators, notably: internet penetration, mobile phone penetration and fixed broad band subscriptions. The empirical evidence is based on Ordinary Least Squares, Fixed Effects and System Generalized Method of Moments regressions. The findings show that improvement in technology increases female economic participation with the following consistent order of increasing magnitude: mobile phone penetration; internet penetration and fixed broad band subscriptions. The findings are robust to the control for: countries’ levels in economic development; the use of contemporary technology advancement indicators; internal conflicts and political stability; the level of social globalization and the use of alternative instruments. Policy implications are discussed.
    Keywords: Technology; Inclusive development; Africa
    JEL: G20 I10 I32 O40 O55
    Date: 2016–04
  3. By: Olga Gorbachev (Department of Economics, University of Delaware); María José Luengo-Prado (Boston Federal Reserve)
    Abstract: We use the 1979 National Longitudinal Survey of Youth to revisit what is termed the credit card debt puzzle: why consumers simultaneously co-hold high interest credit card debt and low-interest assets that could be used to pay down this debt. Relative to individuals with no credit card debt but positive liquid assets (savers), borrower-savers have higher discount rates, slightly lower financial literacy scores, and very different perceptions on future credit risk: many individuals are using credit cards for precautionary motives. Moreover, changing perceptions about credit risk are essential for predicting transitions among the two groups. Respondents whose credit risk increases over time are more likely to transition from being savers to being borrower-savers, and vice versa. Preferences and the composition of financial portfolios also play a role in these transitions. Importantly, we find that financial literacy may help mitigate the effect of preferences.
    Keywords: household finance, risk aversion, time preferences, precautionary motives, bankruptcy, foreclosure
    Date: 2016
  4. By: Hassan, Shahid; Ali, Umbreen; Dawood, Mamoon
    Abstract: This study investigates the factors such as interest rate, GDP per capita, exchange rate, fiscal deficit, urban and rural population to determine money demand function for Pakistan over the period from 1972-2013. We use ARDL Bound Testing approach in order to test long run relation between money demand and its factors whereas both long and short run coefficients will be found using similar approach. The results show that real interest rate exerts significant and negative effect upon money demand in both long and short run in Pakistan. The results also disclose that exchange rate and rural population are leaving significant but negative effect on the demand for money. These findings are robust to different diagnostic tests.
    Keywords: Money Markets
    JEL: E52
    Date: 2016–12–09
  5. By: David M. Byrne; Wendy E. Dunn; Eugenio P. Pinto
    Abstract: Spurred by advances in electronic miniaturization and power efficiency, lightweight, powerful and inexpensive tablet computers entered the mass market in significant volumes in 2010. Since that time, sales of tablet computers have increased to account for over half of personal computer (PC) units sold worldwide.
    Date: 2015–12–05

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