nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2017‒08‒13
six papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. The comparative exploration of mobile money services in inclusive development By Asongu, Simplice; Asongu, Ndemaze
  2. The G20 countries should engage with blockchain technologies to build an inclusive, transparent, and accountable digital economy for all By Maupin, Julie
  3. Chameleons in the midst of hawks: The real meaning to be attributed to the definition of fraud By DiGabriele, Jim; Ojo, Marianne
  4. Ride with me: Ethnic discrimination in social markets By Tjaden, Jasper Dag; Schwemmer, Carsten; Khadjavi, Menusch
  5. Household Credit and Local Economic Uncertainty By DiMaggio, Marco; Kermani, Amir; Ramcharan, Rodney; Yu, Edison
  6. Provisions on electronic commerce in regional trade agreements By Monteiro, José-Antonio; Teh, Robert

  1. By: Asongu, Simplice; Asongu, Ndemaze
    Abstract: Purpose- We respond to some challenges in the transition to Sustainable Development Goals by examining the correlations between mobile and inclusive development (quality of growth, poverty and inequality) in 93 developing countries for the year 2011. Design/methodology/approach- Mobile money service entails: ‘mobile used to pay bills’ and ‘mobile used to receive/send money’. Interactive Ordinary Least Squares are employed. Findings- The following findings are established. First, increasing use of the mobile phones to pay bills: is positively linked to ‘quality of growth’ in lower-middle income countries (LMIC) and negatively correlated with inequality in Latin American countries (LA). Second, growing use of mobile phones to send/receive money is negatively associated with poverty in Asia and Pacific (AP) and Central and Eastern Europe (CEE). Originality/value- Macroeconomic data on mobile money service is scarce. No study to the best of our knowledge has used this macroeconomic mobile money service data before.
    Keywords: Mobile money services, Quality of growth, poverty, inequality
    JEL: G20 I10 I20 I32 O40
    Date: 2017–01
  2. By: Maupin, Julie
    Abstract: Blockchain technologies hold the key to building an inclusive global digital economy that is auditably secure and transparently accountable to the world's citizens. At a time when governments must fight to restore the public's faith in cross-border economic cooperation, blockchains can play a critical role in strengthening economic resilience while ensuring the global economy works to the benefit of all. The G20 must take decisive steps to harness this technology in service of its policy goals across the core focus areas of economic resilience, financial inclusion, taxation, trade and investment, employment, climate, health, sustainable development, and women's empowerment. Failure to do so risks further fragmenting the global economy, undermining public trust in international economic institutions, and pushing the most cutting-edge blockchain developments into dark web deployments that are beyond the reach of government influence. By acting now to embrace blockchains' socially beneficial properties and minimize their potential downside risks, the G20 governments can lay the foundation for a just, prosperous, and truly shared global economy.
    Keywords: blockchain,distributed ledger,tangle,cryptocurrency,Bitcoin,Ethereum,G20,WTO,Basel Agreements,Paris Agreement,international law,regulation,technology,innovation,transnational cooperation,trade,environment,financial system,monetary system
    JEL: E42 E58 F33 G15 K33 O33 Q56
    Date: 2017
  3. By: DiGabriele, Jim; Ojo, Marianne
    Abstract: The assumption of a different name for professional purposes dates back centuries – where environments did not encourage certain practices by certain genders. Even presently, the Internet Revolution – fuelled by online transactions and practices, is inducing many to assume measures aimed at the protection of their data – as well as privacy. How important is a professional career or the need to protect privacy such that the necessary, consequent (and ultimate) change involved with official documents also justifies such change? It will be argued by some that getting used to a new name is just a matter which can be adjusted to (and easily over time) – particularly with ease during an age where all documentation is also increasingly becoming digital. And what of those who have done nothing at all to change their names – but who have already been defined by society through their names – even though such definition or expectations may not necessarily accord with their true or real nature? Are they to be criticized for choosing to live genuine lives – which are regarded as contrary to societal expectations – by virtue of prior and already perceived perceptions? A case of the character or person (behind the name) not corresponding to what was expected – hence in the public view, not the real deal? As well as highlighting what should constitute ultimate considerations in determining whether fraudulent acts have been committed, this paper and presentation also aims to highlight challenges faced in an increasingly digital economy – as well as highlight the role of forensic accountants in addressing such challenges.
    Keywords: digital economy; fraud and error detection; forensic accounting; privacy protection
    JEL: E3 E5 G1 G2 G3 K2 M41
    Date: 2017–08
  4. By: Tjaden, Jasper Dag; Schwemmer, Carsten; Khadjavi, Menusch
    Abstract: We study ethnic discrimination in Europe's largest carpooling marketplace. Using a unique dataset with more than 17,000 rides, we estimate the effects of drivers' perceived name origins on the demand for rides. Carpooling is a novel application for studying ethnic discrimination where consumer choice entails social interaction with the service provider (i.e. driver). We find large discrimination effects for drivers with Arab, Turkish or Persian sounding names. Further analyses support assumptions consistent with statistical discrimination. Our findings broaden the perspective of ethnic discrimination by shedding light on subtle, everyday forms of discrimination in social markets and fuel ongoing discussions about anti-discrimination efforts in an era in which markets increasingly move online.
    Keywords: ethnic discrimination,statistical discrimination,taste-based discrimination,online markets,computational social science
    Date: 2017
  5. By: DiMaggio, Marco (Harvard Business School and NBER); Kermani, Amir (University of California, Berkeley, and NBER); Ramcharan, Rodney (University of Southern California); Yu, Edison (Federal Reserve Bank of Philadelphia)
    Abstract: This paper investigates the impact of uncertainty on consumer credit outcomes. We develop a local measure of economic uncertainty capturing county-level labor market shocks. We then exploit microeconomic data on mortgages and credit-card balances together with the crosssectional variation provided by our uncertainty measure to show strong borrower-specific heterogeneity in response to changes in uncertainty. Among high risk borrowers or areas with more high risk borrowers, increased uncertainty is associated with housing market illiquidity and a reduction in leverage. For low risk borrowers, these effects are absent and the cost of mortgage credit declines, suggesting that lenders reallocate credit towards safer borrowers when uncertainty spikes. A similar pattern is observed in the unsecured credit market. Taken together, local uncertainty might independently affect aggregate economic activity through consumer credit markets and could engender greater inequality in consumption and housing wealth accumulation across households.
    Keywords: consumer credit; mortgages; credit cards; lending practices;
    JEL: D14 D80 E52 G21
    Date: 2017–08–03
  6. By: Monteiro, José-Antonio; Teh, Robert
    Abstract: This paper reviews the different types of provisions explicitly addressing electronic commerce (e-commerce) in regional trade agreements (RTAs). The analysis covers the 275 RTAs currently in force and notified to the WTO as of May 2017. The analysis shows that e-commerce provisions have become increasingly more detailed but remain highly heterogeneous. The most common types of e-commerce provisions refer to the promotion of e-commerce, cooperation activities and the moratorium on customs duties. Other e-commerce provisions concern the domestic legal framework as well as more specific issues, such as electronic authentication, consumer protection, personal information protection and paperless trading.
    Keywords: Regional Trade Agreements,Electronic Commerce,E-commerce
    JEL: F13 F15
    Date: 2017

This nep-pay issue is ©2017 by Bernardo Bátiz-Lazo. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.