nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2017‒03‒26
twenty papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. An Empirical Analysis of Demand for Mobile Services in Turkey By Hulisi Ögüt; Asunur Cezar; Merve Güven
  2. Recent finance advances in information technology for inclusive development: a survey By Simplice Asongu; Jacinta C. Nwachukwu
  3. Technology selection for big data and analytical applications By Lehmann, Denis; Fekete, David; Vossen, Gottfried
  4. ICT, Financial Sector Development and Financial Access By Simplice Asongu; Jacinta C. Nwachukwu
  5. Comparative human development thresholds for absolute and relative pro-poor mobile banking in developing countries By Simplice Asongu; Jacinta C. Nwachukwu
  6. Kryptowährungen- Ein Problem für die Geldpolitik? By Andreas Hanl; Jochen Michaelis
  7. Maximizing opportunities and minimizing risks for children online: the role of digital skills in emerging strategies of parental mediation By Sonia Livingstone; Kjartan Ólafsson; Ellen J. Helsper; Francisco Lupiáñez-Villanueva; Giuseppe A. Veltri; Frans Folkvord
  8. Banking on Trust: How Debit Cards Enable the Poor to Save More By Pierre Bachas; Paul Gertler; Sean Higgins; Enrique Seira
  9. Regulating Robo Advice across the Financial Services Industry By Baker, T.; Dellaert, B.G.C.
  10. The Synergy of Financial Sector Development and Information Sharing in Financial Access: Propositions and Empirical Evidence By Simplice Asongu; Jacinta C. Nwachukwu
  11. Innovation in risky markets. Multinational and domestic firms in the UK regions By Luisa Gagliardi; Simona Iammarino
  12. Is the Internet Causing Political Polarization? Evidence from Demographics By Levi Boxell; Matthew Gentzkow; Jesse M. Shapiro
  13. On the possibility of automation-induced stagnation By Gasteiger, Emanuel; Prettner, Klaus
  14. E-Commerce in the lighting fixtures sector By Aurelio Volpe
  15. Marketing mit Instagram By Nufer, Gerd; Lenzen, Caroline Verena
  16. The Impact of Information Technology on the Diffusion of New Pharmaceuticals By Kenneth J. Arrow; Kamran Bilir; Alan T. Sorensen
  17. Use of twitter and Facebook by top European museums By Zafiropoulos, Kostas; Vrana, Vasiliki; Antoniadis, Konstantinos
  18. Automation and demographic change By Abeliansky, Ana; Prettner, Klaus
  19. Information security research methodologies: A review By Parvathi Jayaprakash; M P Sebastian
  20. Modern universities in a digital environment By Lukovics, Miklós; Zuti, Bence

  1. By: Hulisi Ögüt (TOBB University of Economics and Technology); Asunur Cezar; Merve Güven
    Abstract: We investigate the factors influencing the demand for mobile voice services in Turkey using firm level data that spans from January 2009 to December 2013. Competition in the mobile telecommunication market in Turkey has become more intense as a result of the mobile number portability (MNP) service introduced in 2008 and 3G technology introduced in 2009. The intense competition not only helps to keep prices down but also supports subscriber growth. Besides prices, we believe that network effects have an impact on market growth. Approximating sales levels using subscription levels and churn rates and using revenue per minute (RPM) as a price measure, we find that while price has a significant negative impact, network effects have a significant positive impact on the demand for mobile services in Turkey. We also estimate own and cross price elasticities of firms operating in mobile telecommunication market.
    Date: 2015–09
  2. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK)
    Abstract: The overarching question tackled in this paper is: to what degree has financial development contributed to providing opportunities of human development for those on low-incomes and by what information technology mechanisms? We survey about 180 recently published papers to provide recent information technology advances in finance for inclusive development. Retained financial innovations are structured along three themes. They are: (i) the rural-urban divide, (ii) women empowerment and (iii) human capital in terms of skills and training. The financial instruments are articulated with case studies, innovations and investment strategies with particular emphasis, inter alia on: informal finance, microfinance, mobile banking, crowdfunding, microinsurance, Islamic finance, remittances, Payment for Environmental Services (PES) and the Diaspora Investment in Agriculture (DIA) initiative.
    Keywords: Finance; Inclusive Growth; Economic Development
    JEL: G20 I10 I20 I30 O10
    Date: 2017–01
  3. By: Lehmann, Denis; Fekete, David; Vossen, Gottfried
    Abstract: The term Big Data has become pervasive in recent years as smart phones, televisions, washing machines, refrigerators, smart meters, diverse sensors, eyeglasses and even clothes connect to the Internet. However, their generated data is worthless without information retrieval through data analytics. As Big Data is too big for a single person to investigate, appropriate technologies are being used. Unfortunately, there is not one solution but a large variety of different tools, each of them with other functionalities, properties and characteristics. Especially small and midsized companies have a hard time to keep track as this requires time, skills, money, and specific knowledge which result in high entrance barriers for Big Data utilization. This papers aims to reduce these barriers by explaining and structuring different classes of technologies and basic criteria for proper technology selection. It proposes a framework that guides especially small and mid-sized companies through a suitable selection process that can serve as a basis for further advances.
    Keywords: Big Data,Analytics,Technology Selection,Architecture,Reference Architecture,Selection Framework
    Date: 2016
  4. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK)
    Abstract: This study assesses the role of ICT (internet and mobile phone penetration) in complementing financial sector development (financial formalization and informalization) for financial access. The empirical evidence is based on Generalised Method of Moments with 53 African countries for the period 2004-2011. The following findings are established from linkages between ICT, financial sector development and financial activity. First, the interaction between ICT and financial formalization (informalization) decreases (increases) financial activity. Second, with regards to net effects, the expected signs are established for the most part. In spite of the negative marginal effects from financial informalization, the overall net effects are positive. Third, the potentially appealing interaction between ICT and informalization produces positive thresholds that are within ranges. Policy implications are discussed in three main strands. They include implications for (i) mobile/internet banking; (ii) a quiet life and (iii) ICT in reducing information asymmetry and surplus liquidity.
    Keywords: Allocation efficiency; Financial sector development; ICT
    JEL: G20 G29 L96 O40 O55
    Date: 2017–01
  5. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK)
    Abstract: We assess the correlations between mobile banking and inclusive development (poverty and inequality) in 93 developing countries for the year 2011. Mobile banking entails: ‘mobile phones used to pay bills’ and ‘mobile phones used to receive/send money’, while the modifying policy indicator is the human development index (HDI). The data is decomposed into seven sub-panels based on two fundamental characteristics, namely: regions (Latin America, Asia and Pacific, Central and Eastern Europe, and Middle East and North Africa) and income levels (upper middle income, lower middle income and low income). Our results show that at certain thresholds of the HDI, mobile banking is positively linked to inclusive development. The following specific findings are established. First, the increased use of mobile phones to pay bills is negatively correlated with: (i) poverty in lower-middle-income countries (LMIC), upper-middle-income countries (UMIC) and Latin American countries (LA), respectively at HDI thresholds of 0.725, 0.727 and 0.778 and; (ii) inequality in UMIC and LA with HDI thresholds of respectively 0.646 and 0.761. Second, the increased use of mobile phones to send/receive money is negatively correlated with: (i) poverty in LMIC, UMIC and Central and Eastern European countries (CEE) with corresponding HDI thresholds of 0.631, 0.750 and 0.750 and (ii) inequality in UMIC, CEE and LA at HDI thresholds of 0.665, 0.736 and 0.726 respectively. The findings are discussed in the light of current policy challenges in the transition from Millennium Development Goals to Sustainable Development Goals. We have exploited the only macroeconomic data on mobile banking currently available.
    Keywords: Mobile banking, quality of growth, poverty, inequality
    JEL: G20 O40 I10 I20 I32
    Date: 2017–01
  6. By: Andreas Hanl (Universität Kassel); Jochen Michaelis (Universität Kassel)
    Abstract: Cryptocurrencies such as Bitcoins may revolutionize the financial system by at least partially replacing intermediaries such as central banks and commercial banks. The blockchain technology enables users to transact on a peer-to-peer basis. This imposes a serious threat on the financial intermediaries as well as on monetary policy authorities. In this paper, we examine how well cryptocurrencies fulfill the functions of a fiat money and discuss the comparative advantages of cryptocurrencies. We proceed by exploring the implications of digital currencies for the concept and conduct of monetary policy.
    Keywords: Bitcoin, Kryptowährung, Geldpolitik
    JEL: E42 E52
    Date: 2017
  7. By: Sonia Livingstone; Kjartan Ólafsson; Ellen J. Helsper; Francisco Lupiáñez-Villanueva; Giuseppe A. Veltri; Frans Folkvord
    Abstract: As internet use becomes widespread at home, parents are trying to maximize their children’s online opportunities while also minimizing online risks. We surveyed parents of 6- to 14-year-olds in eight European countries (N=6,400). A factor analysis revealed two strategies. Enabling mediation is associated with increased online opportunities but also risks. This strategy incorporates safety efforts, responds to child agency and is employed when parent or child is relatively digitally skilled, so may not support harm. Restrictive mediation is associated with fewer online risks but at the cost of opportunities, reflecting policy advice that regards media use as primarily problematic. It is favoured when parent or child digital skills are lower, potentially keeping vulnerable children safe yet undermining their digital inclusion.
    Keywords: Parental mediation; internet; online risks; online opportunities; child agency; digital skills; policy guidance; parental style
    JEL: L91 L96
    Date: 2017–02
  8. By: Pierre Bachas; Paul Gertler; Sean Higgins; Enrique Seira
    Abstract: Trust is an essential element of economic transactions, but trust in financial institutions is low, especially among the poor. Debit cards provide not only easier access to savings, but also a mechanism to monitor bank account balances and thereby build trust in a financial institution. We study a natural experiment in which debit cards are rolled out to beneficiaries of a Mexican conditional cash transfer program whose benefits are already directly deposited into a savings account. Using administrative data on over 340,000 bank accounts over four years, we find that prior to receiving a debit card, beneficiaries do not save in these accounts. Beneficiaries then begin to increase their savings after 9 to 12 months with the card. During this initial stagnant period, they use the card to check their balances frequently, and the number of checks decreases over time as their reported trust in the bank increases. After 1 to 2 years, the debit card causes the savings rate to increase by 3 to 5 percent of income. Using household survey panel data, we find that this effect represents an increase in overall savings.
    JEL: D14 D83 G21 O16
    Date: 2017–03
  9. By: Baker, T.; Dellaert, B.G.C.
    Abstract: Automated financial product advisors – “robo advisors” – are emerging across the financial services industry, helping consumers choose investments, banking products, and insurance policies. Robo advisors have the potential to lower the cost and increase the quality and transparency of financial advice for consumers. But they also pose significant new challenges for regulators who are accustomed to assessing human intermediaries. A well-designed robo advisor will be honest and competent, and it will recommend only suitable products. Because humans design and implement robo advisors, however, honesty, competence, and suitability cannot simply be assumed. Moreover, robo advisors pose new scale risks that are different in kind from that involved in assessing the conduct of thousands of individual actors. This essay identifies the core components of robo advisors, key questions that regulators need to be able to answer about them, and the capacities that regulators need to develop in order to answer those questions. The benefits to developing these capacities almost certainly exceed the costs, because the same returns to scale that make an automated advisor so cost-effective lead to similar returns to scale in assessing the quality of automated advisors.
    Keywords: automated financial product advisors, robo advisors
    Date: 2017–03–13
  10. By: Simplice Asongu (Yaoundé/Cameroun); Jacinta C. Nwachukwu (Coventry University, UK)
    Abstract: This study assesses the role of information sharing in financialization (or coexistence of financial sub-systems) for financial access. The empirical evidence is based on contemporary and non-contemporary Fixed Effects and Quantile regressions on 53 African countries for the period 2004-2011. The positive complementarity of information sharing offices (ISOs) and financial formalization is an increasing function of financial activity (or access to credit) whereas the negative complementarity of ISOs and financial informalization is a decreasing function of financial activity. In order to leverage on the synergy between ISO and financial formalization for enhanced financial access, some policy measures are proposed.
    Keywords: Information Asymmetry; Financialization; Financial Access
    JEL: G20 G29 L96 O40 O55
    Date: 2017–03
  11. By: Luisa Gagliardi (London School of Economics and Political Science); Simona Iammarino (London School of Economics and Political Science)
    Date: 2017–03
  12. By: Levi Boxell; Matthew Gentzkow; Jesse M. Shapiro
    Abstract: We combine nine previously proposed measures to construct an index of political polarization among US adults. We find that the growth in polarization in recent years is largest for the demographic groups least likely to use the internet and social media. For example, our overall index and eight of the nine individual measures show greater increases for those older than 75 than for those aged 18–39. These facts argue against the hypothesis that the internet is a primary driver of rising political polarization.
    JEL: D72
    Date: 2017–03
  13. By: Gasteiger, Emanuel; Prettner, Klaus
    Abstract: We analyze the long-run growth effects of automation in the standard overlap- ping generations framework. We show that, in contrast to other neoclassical models of capital accumulation, automation does not promote growth but induces economic stagnation. The reason is that automation suppresses wages, which are the only source of investment in the overlapping generations framework.
    Keywords: automation,robots,investment,stagnation,economic growth,overlapping generations model
    JEL: J10 J20 O14 O33 O41
    Date: 2017
  14. By: Aurelio Volpe (CSIL Centre for Industrial Studies; CSIL Centre for Industrial Studies)
    Abstract: The report analyses the development of E-commerce sales in the lighting fixtures industry to nowadays and future prospects providing market size of lighting fixtures industry and E-commerce sales, by country/area (Europe, America, Asia) and by segment (Residential, Commercial, Industrial and Outdoor lighting). The Report highlights also a strategy for the E-commerce of lighting fixtures for the middle run, focusing on logistic platforms, price promise, investments from incubators, increasing use of smartphones, lack of infrastructure. E-commerce players. Short profiles of leading E-commerce players, sales data and market shares are included. Successful and unsuccessful stories. Around 200 useful contacts. Countries and geographical area considered: Europe (mainly Western Europe), America (mainly the United States), Asia (mainly China, India and Japan). The Report “E-commerce for the lighting fixtures industry†has been carried out using the following tools: field research including direct interviews with important manufacturers and distributors operating in the E-commerce business; desk analysis and comparison for a sample of over 200 companies using E-commerce (mainly US, Europe and China based); analysis of CSIL databases concerning lighting fixtures sector worldwide; processing of official statistics and various E-commerce related sources worldwide.
    JEL: L68 L81
    Date: 2017–03
  15. By: Nufer, Gerd; Lenzen, Caroline Verena
    Abstract: In einer reizüberfluteten Konsumgesellschaft gestaltet es sich nicht immer einfach, potentielle Kunden über den passenden Kanal zu erreichen. Für die Markenpositionierung müssen steigende Budgets in die Produktion von qualitativ hochwertigen Inhalten investiert werden, um durch den wachsenden digitalen Wettbewerb Authentizität und Relevanz für den Konsumenten zu wahren. Dabei ist der Fokus längst von der reinen Werbebotschaft zum "Storytel-ling" gewandert. Die Bedeutung der Erlebnisqualität einer Marke rückt in den Vordergrund, denn die Zielgruppe möchte nicht nur den objektiven Mehrwert erfahren, sondern zugleich eine spannende Geschichte, die sie auch selbst mit dem Produkt oder der Dienstleistung erleben können. Durch die Zunahme des mobilen Konsums von Content finden gerade soziale Netzwerke wie Instagram bei der Planung der Marketing-Aktivitäten eines Unternehmens steigende Beachtung. Im Textileinzelhandel wird diese Erkenntnis bereits seit längerer Zeit aktiv genutzt, nicht so im deutschen Lebensmitteleinzelhandel. Vor diesem Hintergrund stellt sich die Frage, ob eine ästhetische Inszenierung von Lebensmitteln auf Instagram überhaupt beim Rezipienten ankommt? Die Antwort ist eindeutig: Amerikanische Unternehmen wie Wholefoods machen es vor. Mit über 1,9 Millionen Abonnenten und fast 2.500 geposteten Beiträgen (Stand Februar 2017) erfreut sich das Unternehmensprofil des Lebensmitteleinzelhändlers aus Texas großer Beliebtheit. Marketing mit Instagram und Lebensmittel kann also erfolgreich verknüpft werden, aber wie? Dies soll im Rahmen der vorliegenden Arbeit untersucht werden.
    Date: 2017
  16. By: Kenneth J. Arrow; Kamran Bilir; Alan T. Sorensen
    Abstract: How does information affect the diffusion of innovations? This paper evaluates the influence of physicians' access to detailed drug information on their decisions about which products to prescribe. Combining data on prescriptions and use of a point-of-care electronic drug reference database for over 125,000 individual U.S. physicians, we find that those using the reference prescribe a significantly more diverse set of products, are faster to begin prescribing new generic drugs, and also have a greater propensity to prescribe generics in general. Notably, physicians using the reference database are not faster to prescribe new branded drugs. Given that a new generic drug resembles its branded equivalent clinically, these results are consistent with database users responding primarily to the increased accessibility of non-clinical information such as drug price and insurance formulary data; the results also suggest improvements to physician information access could have important implications for the costs and efficiency of medical care. We address possible selection effects in physician types by relying on within-doctor variation and an instrument for adoption timing that is based on the marketing strategy of the drug reference firm.
    JEL: I10 O33
    Date: 2017–03
  17. By: Zafiropoulos, Kostas; Vrana, Vasiliki; Antoniadis, Konstantinos
    Abstract: With social media becoming so pervasive, museums strive to adopt them for their own use. Effective use of social media especially Facebook and Twitter seems to be promising. Social media offer museums the possibility to engage audiences, potential and active visitors with their collections and ideas. Facebook and Twitter are the market leaders of social media. This paper records the top European museums and their Facebook and Twitter accounts. It records the use of the two media, and by applying statistical analysis it investigates whether Twitter use is in accordance to Facebook use. Findings reveal that this is not the case. By using Principal Component Analysis and Cluster Analysis the paper finds that there is, however, a district group of top museums which manage to excel in both media mainly by adopting carefully planned strategies and paying attention to the potential and benefits that social media offer.
    Keywords: European museums, Facebook, Twitter, performance, activity, popularity
    JEL: L83 M1 O1
    Date: 2015–08–09
  18. By: Abeliansky, Ana; Prettner, Klaus
    Abstract: We analyze the effects of declining population growth on the adoption of automation technology. A standard theoretical framework of the accumulation of traditional physical capital and of automation capital predicts that countries with a lower population growth rate are the ones that innovate and/or adopt new automation technologies faster. We test the theoretical prediction by means of panel data for 60 countries over the time span from 1993 to 2013. Regression estimates provide empirical support for the theoretical prediction and suggest that a 1% increase in population growth is associated with approximately a 2% reduction in the growth rate of robot density. Our results are robust to the inclusion of standard control variables, the use of different estimation methods, the consideration of a dynamic framework with the lagged dependent variable as regressor, and changing the measurement of the stock of robots.
    Keywords: Automation,Industrial Robots,Demographic Change,Declining Population Growth,Economic Growth
    JEL: J11 O14 O33 O40
    Date: 2017
  19. By: Parvathi Jayaprakash (Indian Institute of Management Kozhikode); M P Sebastian (Indian Institute of Management Kozhikode)
    Abstract: Information is critical for the survival and growth of organisations and people. The challenge for Information management is now less about managing the activities that collect, store and disseminate information. Rather, there is a greater focus on managing the activities that make changes in the patterns of behaviour of customers, people, and organizations, and information that leads to changes in the way people use information to engage in knowledge focussed activities. Information systems' security management is undoubtedly a critical activity in a world where computing is ubiquitous and information systems are interconnected globally. This paper is a review of the research methodologies used in the literature of information security for the last decade. This research opens up many new avenues for further research in information security
    Keywords: Information security,literature review, research methodologies, theories
  20. By: Lukovics, Miklós; Zuti, Bence
    Abstract: Nowadays the digitalization of all aspects of our lives is becoming more and more general. This pattern is also true in case of modern institutions of higher education. In case of the operation of universities, we can identify a shift towards a growingly increasing approach, which is proactive strategic thinking done by university management. Many successful examples throughout the globe prove that universities may positively affect the level of economic development in given regions. This can happen with the collective presence of three key activities carried out by these institutions. Excellent education, successful research and embedment in the local economy are all necessary activities. It is recognized that without a proper knowledge management system, universities are less competitive. They need to possess outstanding IT-infrastructures, large databases and host professional forums that can enhance knowledge transfer. Thus, knowledge management and a vision for digitalization in the everyday lives of universities should be considered as an integral and inevitable part of university strategies. The study has two goals: It attempts to identify, how digitalization can contribute to the excellence of the first mission of universities and also examines the role of modern universities in activities that can enhance knowledge-transfer.
    Keywords: knowledge management, third mission, modern universities, digitalization
    JEL: I20 I25 O30
    Date: 2016

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