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on Payment Systems and Financial Technology |
| By: | Huberman, Gur; Leshno, Jacob D.; Moallemi, Ciamac |
| Abstract: | Owned by nobody and controlled by an almost immutable protocol the Bitcoin payment system is a platform with two main constituencies: users and profit seeking miners who maintain the system's infrastructure. The paper seeks to understand the economics of the system: How does the system raise revenue to pay for its infrastructure? How are usage fees determined? How much infrastructure is deployed? What are the implications of changing parameters in the protocol? A simplified economic model that captures the system's properties answers these questions. Transaction fees and infrastructure level are determined in an equilibrium of a congestion queueing game derived from the system's limited throughput. The system eliminates dead-weight loss from monopoly, but introduces other inefficiencies and requires congestion to raise revenue and fund infrastructure. We explore the future potential of such systems and provide design suggestions. |
| JEL: | D40 D20 L10 L50 |
| Date: | 2017–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2017_027&r=pay |
| By: | Simplice Asongu (Yaoundé/Cameroun); Ndemaze Asongu (Yaoundé, Cameroon) |
| Abstract: | This study assesses how the mobile phone influences governance to improve information and communication technology (ICT) exports in Sub-Saharan Africa with data from 2000-2012. The empirical evidence is based on Generalised Method of Moments and three main governance concepts are used, namely: (i) institutional (comprising the rule of law and corruption-control); (ii) political (involving political stability/no violence and voice & accountability) and (iii) economic (including regulation quality and government effectiveness) governance. The following findings are established. First, there are positive net effects on ICT goods exports from independent interactions between mobile phones and ‘political stability’ ‘voice and accountability’ and corruption-control. Second, significant net effects are not apparent from independent interactions between mobile phones and government effectiveness, regulation quality and the rule of law. Theoretical and practical implications are discussed. |
| Keywords: | Knowledge economy; Development; Africa |
| JEL: | L59 L98 O10 O30 O55 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:17/036&r=pay |
| By: | Francesco C. Billari; Osea Giuntella; Luca Stella |
| Abstract: | The spread of high-speed Internet epitomizes the digital revolution, affecting several aspects of our life. Using German panel data, we test whether the availability of broadband Internet influences fertility choices in a low-fertility setting, which is well-known for the difficulty to combine work and family life. We exploit a strategy devised by Falck et al. (2014) to obtain causal estimates of the impact of broadband on fertility. We find positive effects of highspeed Internet availability on the fertility of high-educated women aged 25 and above. Effects are not statistically significant both for men, low-educated women, and under 25. We also show that broadband access significantly increases the share of women reporting teleworking or part-time working. Furthermore, we find positive effects on time spent with children and overall life satisfaction. Our findings are consistent with the hypothesis that high-speed Internet allows high-educated women to conciliate career and motherhood, which may promote fertility with a “digital divide”. At the same time, higher access to information on the risks and costs of early pregnancy and childbearing may explain the negative effects on younger adults. |
| Keywords: | Internet, Low Fertility, Work and Family, Teleworking |
| JEL: | J11 J22 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp928&r=pay |
| By: | Friedrich Schneider |
| Abstract: | This paper has four goals: First, the use of cash as a possible driving factor of the shadow economy is investigated. Second, the use of cash in crime, here especially in corruption, is also econometrically investigated. The influence is somewhat larger than on the shadow economy, but it is certainly not a decisive factor for bribery activities. Some figures about organized crime are also shown; the importance of cash is diminishing. Third, some remarks about terrorism are made and here a cash limit doesn’t prevent terrorism. Fourth, some remarks are made about the restriction or abolishment of cash on civil liberties, with the result that this will extremely limit them. The conclusion of this paper is that cash has a minor influence on the shadow economy, crime and terrorism, but potentially a major influence on civil liberties. |
| Keywords: | cash, cash limit, shadow economy, crime, corruption, transnational crime organizations, financial proceeds, money laundering, illegal cross-border flows, tax fraud figures. |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2017_09&r=pay |
| By: | Jonker, Nicole; Hernandez, Lola; de Vree, Renate; Zwaan, Patricia |
| Abstract: | In this study, we present and discuss the results of a longitudinal survey on consumers’ payment behaviour carried out yearly during the period 2010 to 2016. We have collected data among 119,117 Dutch consumers aged 12 years and older using single day payment diaries. Between 2010 and 2013 the field work was carried out in September, whereas from 2014 onwards the field work has taken place during the whole year. The results reveal a gradual substitution of cash by debit card payments between 2010 and 2016. Between 2012 and 2013, the substitution process slowed down, probably due to the economic crisis. In 2015 Dutch consumers for the first time made more payments with debit cards than with cash. |
| Keywords: | Cash usage,debit card usage,households,diary data |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iccp17:168371&r=pay |
| By: | Radka Bauerová (Department of Business Economics and Management, School of Business Administration, Silesian University); Martin Klepek (Department of Business Economics and Management, School of Business Administration, Silesian University) |
| Abstract: | In today's world, the technology and internet reshaped the way products are ordered, delivered and consumed. More and more customers have internet connection thus opportunity to buy online. The products bought mostly online are mobile and IT, electronics, home and gardening equipment and fashion. On the other side of the spectrum is food. Thanks to high demands on logistics, companies entered the market in the Czech Republic gradually. One fourth of Czech customers tried buying food online and every tenth person buys groceries regularly. However, the relative turnover of online groceries to whole e-commerce market is low. Online retailers or e-retailers are therefore in constant search for understanding of consumer behaviour behind current situation. The aim of the paper is to formulate a theoretical model and formulate a hypothesis for consecutive model testing via structural equation modelling approach. The model will be suitable for online grocery shopping acceptance as a new technology in retail domain. |
| Keywords: | Technology acceptance model, TAM modification, online sales, online shopping, online grocery shopping |
| JEL: | M31 |
| Date: | 2017–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:opa:wpaper:0044&r=pay |
| By: | Lucile Salesses (LPS - Laboratoire de Psychologie Sociale - AMU - Aix Marseille Université); Marie Ouvrard-Servanton (ADEF - Apprentissage, Didactique, Evaluation, Formation - AMU - Aix Marseille Université - INRP) |
| Abstract: | Regarding digital evolution, the aim of this article is to propose a model for e-brand equity that allows constructing, managing and measuring the e-identity, e-influence, e-reputation and e-brand factors in all kind of organizations. This research follows a first work that has consisted in settling the theory concepts when adding the e- to the basic notions of identity, brand, influence and reputation. We wonder now if organizations necessarily need a model for managing the digital dimension in order to gain the desired e-brand equity. We have sought to provide strategic factors to organizations in order to allow them to manage new communication and diffusion formats: blogs, Facebook, Youtube, Pinterest, Instagram, Tumblr, Twitter, Google+, Snapchat. Eventually, in our test regarding four fashion brands, we have observed the management of these factors that significantly participate in elaborating e-brand equity. |
| Abstract: | Au regard des évolutions digitales, l’objectif de cet article est de proposer un modèle du e-capital de marque (e-brand equity) permettant de construire, de gérer et de mesurer les facteurs d’e-identité, d’e-influence, d’e-réputation et d’e-image de marque dans les organisations. Cette recherche fait suite à une première phase de travaux visant à définir les concepts théoriques, notamment avec l’ajout du e- aux notions de base d’identité, d’image de marque, d’influence et de réputation. Ici nous nous demandons si un modèle pour gérer la dimension numérique est nécessaire aux organisations afin d’accéder au e-capital de marque qu’elles désirent. Nous cherchons à leur fournir les facteurs stratégiques afin de pouvoir gérer les nouveaux formats de communication et de diffusion : blogs, Facebook, Youtube, Pinterest, Instagram, Tumblr, Twitter, Google+, Snapchat. Dans notre test pour quatre marques de mode, nous observons et analysons la gestion de ces facteurs qui participent significativement à l’élaboration de l’e-capital marque (e-brand equity). |
| Keywords: | e-image de marque, e-réputation,e-capital de marque (e-brand equity), stratégie numérique, e-influence |
| Date: | 2016–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01444258&r=pay |
| By: | Olga Kokshagina (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Sophie Hooge (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Emilie Canet (MLab - DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | How to shape successful ventures; ensure that an entrepreneur’s journey will lead to create viable businesses over time? It is argued that organizations are built on habits and routines in place that are defined as dispositions to follow certain behavioral tendencies motivated by appropriate contexts and environments (Abell et al., 2007; Becker, 2012; Cohen, 2012; Nelson & Sidney, 1982). Prior work stressed that the individual identity, founders’ habits influence the emergence of organizational routines. Bryant (2014) argues that founders can better manage the initial imprinting process thus enhancing a venture’s capacity to adapt. Besides the founders’ identity and their imprinting memories, ventures’ identity is influenced by its corresponding ecosystem. For instance, to promote and ensure firms’ creation, local ecosystems create incubators, co-working spaces oriented to support the entrepreneurship activities. The principal objective is to help premature companies to grow and become independent, strengthen their offer, help them launching their business. For instance, in Europe, the incubation and mentoring offer drastically increased over the last years aiming to produce successful firms that will leave the incubator financially viable and independent. How do start-ups make use of these structures to actually build their identity, shape their routines? With this purpose our research seeks to understand which role the corresponding ecosystems play on the start up’s collective identity creation, definition of its routines and whether and how the ecosystem along with founders ‘strengthen’ ventures identity. |
| Keywords: | Firm's identity, routines, start-up, entrepreneurship, innovation |
| Date: | 2016–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01408731&r=pay |
| By: | Evans, Olaniyi |
| Abstract: | This study documents the determinants of financial inclusion in Africa for the period 2005 to 2014, using the dynamic panel data approach. The study finds that per capita income, broad money (% of GDP), literacy, internet access and Islamic banking presence and activity are significant factors explaining the level of financial inclusion in Africa. Domestic credit provided by financial sector (% of GDP), deposit interest rates, inflation and population have insignificant impacts on financial inclusion. The findings of this study are of utmost value to African central banks, policymakers and commercial bankers as they advance innovative approaches to enhance the involvement of excluded poor people in formal finance in Africa. |
| Keywords: | Financial inclusion, finance, dynamic panel data, Africa |
| JEL: | G2 O1 O16 O17 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81326&r=pay |
| By: | Benos, Evangelos (Bank of England); Ferrara, Gerardo (Bank of England); Gurrola-Perez, Pedro (Bank of England) |
| Abstract: | Large-value payment systems (LVPS) often have a tiered structure where only a limited number of banks have direct access to these systems and every other institution accesses the system through agency arrangements with the direct participants. As such, a high degree of tiering is often perceived as being associated with credit and operational risks. In this paper we use data around five recent de-tiering events in the United Kingdom’s LVPS(CHAPS), to assess the impact of de-tiering on these risks as well as on liquidity usage. We find that the impact of de-tiering is largest on credit risk, where average intraday exposures between first and second-tier banks drop by anywhere between £0.3 billion and £1.5 billion per bank, while the cost of insuring against losses arising from these exposures drops by about £4 million to £19 million per bank, per year. On the other hand, the impact of these de-tiering events on operational risk and liquidity usage appears to be economically small. |
| Keywords: | Payment systems; tiering |
| JEL: | E42 G23 |
| Date: | 2017–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:0676&r=pay |
| By: | Cory Cutsail; Farley Grubb |
| Abstract: | Beginning in 1712, North Carolina’s assembly emitted its own paper money and maintained some of its paper money in public circulation for the rest of the colonial period. This paper money has been reviled as an archetype of what was bad about the paper monies issued by American colonial legislatures. Yet little systematic analysis of North Carolina’s paper money has been undertaken. We correct that here. We reconstruct North Carolina’s paper money regime from original sources—providing yearly quantitative data on printings, net new emissions, redemptions and removals, amounts remaining in circulation, denominational structure, as well as the paper money’s current market value in pounds sterling. We identify different paper money regimes based on how the assembly structured and executed its paper money laws. We model and estimate how the market value of this money was determined. We compare the quantity theory of money with an asset-pricing model that treats the money as zero-coupon bonds to see which explains the observed market value of the paper money better. The asset-pricing model wins by a mile. Finally, we explore counterfactual redemption architectures to show how redemption affected monetary performance in periods of value collapse. |
| JEL: | E42 E51 G12 N11 N21 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23783&r=pay |
| By: | Tsuyoshi Toshimitsu (School of Economics, Kwansei Gakuin University) |
| Abstract: | Focusing on the role of compatibility between products, we consider the choice of internal decision-making structures—i.e., centralization and decentralization—and its effect on welfare in a network industry where there are horizontally differentiated products associated with network externalities. We demonstrate that if the degree of a network externality is sufficiently large, it is socially optimal to choose decentralization. Furthermore, in the case of consumer ex post expectations, it is optimal for the firm’s owners to choose centralization. However, it is socially preferable given a particular condition. |
| Keywords: | internal decision-making; centralization; decentralization; network externality; compatibility; multiproduct monopoly |
| JEL: | D43 D62 L14 L15 L41 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:166&r=pay |
| By: | Cecchini, Simone; Atuesta, Bernardo |
| Abstract: | This document analyses the evolution of the population coverage and investment of conditional cash transfer (CCT) programmes, which are poverty reduction initiatives, in the countries of Latin America and the Caribbean over the past 20 years. The analysis is based on up-to-date, detailed information from the database on non-contributory social protection programmes in Latin America and the Caribbean, which is administered by the Economic Commission for Latin America and the Caribbean (ECLAC) and available to the public via the Internet. The database presents information on the various components of the programmes and the institutions responsible for them and provides data on budgets, expenditure, coverage and transfer amounts of each CCT programme. |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col041:42109&r=pay |
| By: | Maria Demertzis; Silvia Merler; Guntram B. Wolff |
| Abstract: | Complementing Europe’s bank-based system with deeper capital markets and more cross-border financial integration promises benefits, but despite long-running debate and policy action, financial system change remains slow. Fintech has the potential to change financial intermediation structures substantially. It could disrupt existing financial intermediation with new business models empowered by intelligent algorithms, big data, cloud computing and artificial intelligence. Lower costs and potentially better consumer experiences could be the driving forces. However, empirically, fintech remains at a small scale, especially in the European Union. Even the largest fintech market, in China, is of marginal size compared to overall financial intermediation. In the EU, much of fintech is concentrated in the United Kingdom. We argue that policymakers need to consider four questions urgently - (1) Develop a European or national fintech market? (2) What regulatory framework to pursue? (3) Should supervision of fintech be exercised at the European level? (4) What is the overall vision for the EU’s financial system? Getting the answers to these questions right at an early stage of market development would be an opportunity to shape a stable and cost-efficient financial system. In contrast, late action could mean that Europe loses out to foreign competitors and misses an opportunity to improve financial intermediation in Europe. |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:21961&r=pay |
| By: | Bartzsch, Nikolaus; Uhl, Matthias |
| Abstract: | To facilitate a more detailed study of the volume of euro banknotes in circulation issued by the Deutsche Bundesbank, it is broken down into the components of foreign demand, domestic hoarding and domestic transaction balances. These banknote demand components are estimated using the direct approach “net shipments and foreign travel” as well as an indirect approach known as the “seasonal method”. According to the new estimates, which are based on a combination of the two approaches, around 65% to 70% of the arithmetical volume of euro banknotes issued by the Bundesbank were in circulation outside Germany at the end of 2015; of this figure, 40 to 50 percentage points were in circulation outside the euro area, and 20 to 30 percentage points in other euro-area countries. Between 30% and 35% of the Bundesbank’s cumulated net issuance was in circulation in Germany, of which 25 percentage points were hoarded and 5 to 10 percentage points held for transaction purposes. The newly estimated time series for domestic hoardings does not feature a noticeable break due to the euro area’s low-interest-rate environment; instead, Bundesbank-issued euro banknotes may be circulating in other euro-area countries in greater numbers. |
| Keywords: | Euro banknote demand,foreign demand,transaction balances,hoardings |
| JEL: | E41 E58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iccp17:168370&r=pay |
| By: | Kondo, Kazumine |
| Abstract: | This paper investigates whether branch network expansions by Japanese regional banks influence their management performances positively at a time when management environments surrounding regional financial institutions have become increasingly severe due to the population decreases and shrinkage of regional economies. Specifically, the effects of numbers of regional bank branches on their credit businesses and profits are empirically examined. The results indicated that regional banks with more branches can increase their loans and bills discounted as well as their small and mid-sized enterprises (SME) loans and bills discounted. Thus, establishing more branches is effective in increasing the total sum of loans and bills discounted by each bank because regional banks with many branches can make contact with more customers. On the other hand, return on assets (ROA) and return on equity (ROE) of regional banks with more branches were found to be lower. Therefore, regarding the cost performance of regional banks, establishing too many branches and maintaining branch networks that are too large can have negative effects on regional banks. |
| Keywords: | region-based relationship banking policy, regional bank, branch, loans and bills discounted, profit ratio |
| JEL: | G2 G21 |
| Date: | 2017–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:81257&r=pay |
| By: | Vincent Salaun (CRET-LOG - Centre de Recherche sur le Transport et la Logistique - AMU - Aix Marseille Université) |
| Abstract: | En France, la saison estivale 2015 des festivals musicaux a été marquée par un élément nouveau : le paiement dématérialisé ou cashless. Dans des organisations événementielles à forte dimension logistique, cette communication interroge l'impact que pourrait avoir cette nouvelle pratique sur la gestion des flux dans des manifestations culturelles. En réponse à ce questionnement, la communication met en œuvre une méthodologique prospective, et illustre la capacité du cashless à fournir des données facilitant le pilotage des flux physiques événementiels. Ces résultats se positionnent comme le point de départ d'un projet de recherche plus vaste portant sur le déploiement de technologies de l'information dans les organisations temporaires. (Étude réalisée entre 2014 et 2015) |
| Keywords: | Secteur événementiel,Cashless, Étude prospective, Festivals musicaux, Management logistique |
| Date: | 2016–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01415248&r=pay |
| By: | Benyamin Aghhavani-Shajari (CRET-LOG - Centre de Recherche sur le Transport et la Logistique - AMU - Aix Marseille Université) |
| Abstract: | Le cloud computing (CC) est en train de changer la façon dont les entreprises déploient et exploitent leur système d’information. 55% des entreprises françaises utilisent le Service Cloud type Software as a service (Saas). Les recherches se sont surtout focalisées sur la question de l'adoption du CC (ACC) dans une organisation ou encore sur les difficultés techniques et informatiques. À notre connaissance il existe peu de recherches portant sur l'ACC au niveau de la supply chain (SC), impliquant la question des effets du CC sur les relations inter-organisationnelles (RIO). Pourtant, cette question porte un enjeu. Les technologies basées sur le Web et la mondialisation ont rendu l'environnement économique actuel à la fois très concurrentiel et imprévisible. Le CC a introduit de nouvelles façons de conceptualiser, créer et payer les services informatiques. Tant au niveau théorique qu’empirique, notre recherche a pour but d'identifier les déterminants qui influencent l'ACC au niveau de la SC et de vérifier les effets du CC sur les RIO dans la SC en France. |
| Keywords: | Cloud computing,interorganizational relationship,Saas,Supply chain management,Relations inter-organisationnelles |
| Date: | 2016–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01428837&r=pay |
| By: | Joseph E. Stiglitz |
| Abstract: | The economics of information has constituted a revolution in economics, providing explanations of phenomena that previously had been unexplained and upsetting longstanding presumptions, including that of market efficiency, with profound implications for economic policy. Information failures are associated with numerous other market failures, including incomplete risk markets, imperfect capital markets, and imperfections in competition, enhancing opportunities for rent seeking and exploitation. This paper puts into perspective nearly a half century of research, including recent advances in understanding the implications of imperfect information for financial market regulation, macro-stability, inequality, and public and corporate governance; and in recognizing the endogeneity of information imperfections. It explores the consequences of recent advances in technology and the policy challenges and opportunities they present for competition policy and policies regarding privacy and transparency. The paper notes the role that information economics played in stimulating other advances in economics, including contract theory and behavioral economics. It reinvigorated institutional economics, showing how institutions mattered, in some cases explaining institutional features that could not be well-understood in the conventional paradigm, and in others showing how institutional responses to market failures might or might not be welfare enhancing. The paper argues that the new paradigm provides a markedly different, and better, lens for looking at the economy than the older perfect markets competitive paradigm. |
| JEL: | B21 D82 D83 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23780&r=pay |