nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2018‒04‒30
28 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Educational Quality Thresholds in the Diffusion of Knowledge with Mobile Phones for Inclusive Human Development in Sub-Saharan Africa By Asongu, Simplice; Nwachukwu, Jacinta
  2. Blockchain: The birth of decentralized governance By Benito Arruñada; Luis Garicano
  3. The digital platform: a research agenda By de Reuver, Mark; Sørensen, Carsten; Basole, Rahul C.
  4. Coordination Frictions in Venture Capital Syndicates By Ramana Nanda; Matthew Rhodes-Kropf
  5. Economic predictions with big data: the illusion of sparsity By Giannone, Domenico; Lenza, Michele; Primiceri, Giorgio E.
  6. The Role of Technology in Mortgage Lending By Andreas Fuster; Matthew Plosser; Philipp Schnabl; James Vickery
  7. Opportunities of external data within companies in promoting new business and sustainability on the real estate and construction sector By Antti Säynäjoki
  8. The business of video games is a multi-player game : Essays on governance choices and performance in a two-sided market in the cultural industries By Peters, Frank
  9. Mercado digital regional: aspectos estratégicos By -
  10. Les algorithmes du commerce By Serge Abiteboul
  11. (Real-)Time Is Money By Christian Pfister
  12. Using Massive Online Choice Experiments to Measure Changes in Well-being By Erik Brynjolfsson; Felix Eggers; Avinash Gannamaneni
  13. Dissection of Bitcoin's Multiscale Bubble History from January 2012 to February 2018 By Jan-Christian Gerlach; Guilherme Demos; Didier Sornette
  14. Predicting the stock prices of G7 countries with Bitcoin prices By Afees A. Salisu; Kazeem Isah; Lateef O. Akanni
  15. Influence of Less Cash Economy on Real Estate as Asset Class in India By Rakesh Jain
  16. Technology and the Nature of Active Citizenship: The case of Botswana By Molefe B. Phirinyane
  17. Big Data im Controlling: Chancen und Risiken By Tröbs, Marcel; Mengen, Andreas
  18. Mark-ups in the digital era By Sara Calligaris; Chiara Criscuolo; Luca Marcolin
  19. Amateurs Crowds & Professional Entrepreneurs as Platform Complementors By Kevin J. Boudreau
  20. Sky high economics By Grous, Alexander
  21. It's never too late: Funding dynamics and self pledges in reward-based crowdfunding By Crosetto, P.; Regner, T.
  22. Migration and Online Job Search: A Gravity Model Approach By Tara Sinclair; Mariano Mamertino
  23. Financial incentives for open source development: the case of Blockchain By Canidio, Andrea
  24. Cloud computing as a solution to difficulties in quality projects with independently located members of a managerial team. Experiences in administration and research management projects. By Thierry Bontems; Sabine Goulin; Caroline Censier-Calmus; Françoise Taillebot
  25. Concentration in US Labor Markets: Evidence from Online Vacancy Data By Azar, José; Marinescu, Ioana E.; Steinbaum, Marshall; Taska, Bledi
  26. Introductory remarks at the Community Bankers Conference, Federal Reserve Bank of New York, New York City By Stiroh, Kevin J.
  27. The real estate disciplines' introductory principles textbooks resist Schumpeter and change By Stephen Roulac
  28. The IT Revolution and Southern Europe's Two Lost Decades By Schivardi, Fabiano; Schmitz, Tom

  1. By: Asongu, Simplice; Nwachukwu, Jacinta
    Abstract: The study investigates critical masses or thresholds of educational quality at which the diffusion of information with mobile phones enhances inclusive human development. The empirical evidence is based on simultaneity-robust Fixed Effects regressions with data from 49 Sub-Saharan African countries for the period 2000–2012. The following findings are established: (1) There are positive marginal and net effects on inclusive development from the interaction between mobile phones and educational quality, (2) Between 10 and 27 pupils per teacher is needed in primary education in order for mobile phones to enhance inclusive human development, (3) From a comparative dimension: (i) English Common law countries enjoy higher net effects compared to their French Civil law counterparts, (ii) positive net effects are more obvious in politically stable (vis-à-vis politically unstable) countries, (iii) positive net impacts are also more apparent in resource-poor (vis-à-vis resource-rich) countries, (iv) low income (vis-à-vis higher income) countries have a higher net effect on inclusive development, (v) landlocked (vis-à-vis unlandlocked) countries experience higher net effects and (iv) Islam-dominated countries have a slightly higher net impact compared to their Christian-oriented counterparts.
    Keywords: Mobile phonesInclusive human developmentAfrica
    JEL: G20 I10 I32 O40 O55
    Date: 2017–01
  2. By: Benito Arruñada; Luis Garicano
    Abstract: By allowing networks to split, decentralized blockchain platforms protect members against hold up, but hinder coordination, given that adaptation decisions are ultimately decentralized. The current solutions to improve coordination, based on “premining” cryptocoins, taxing members and incentivizing developers, are insufficient. For blockchain to fulfill its promise and outcompete centralized firms, it needs to develop new forms of “soft” decentralized governance (anarchic, aristocratic, democratic, and autocratic) that allow networks to avoid bad equilibria.
    Keywords: blockchain, platforms, networks, hold‐up, coordination, relational capital, incomplete contracts, decentralized governance
    JEL: D23 L12 L22 L86
    Date: 2018–04
  3. By: de Reuver, Mark; Sørensen, Carsten; Basole, Rahul C.
    Abstract: As digital platforms are transforming almost every industry today, they are slowly finding their way into the mainstream information systems (ISs) literature. Digital platforms are a challenging research object because of their distributed nature and intertwinement with institutions, markets and technologies. New research challenges arise as a result of the exponentially growing scale of platform innovation, the increasing complexity of platform architectures and the spread of digital platforms to many different industries. This paper develops a research agenda for digital platforms research in IS. We recommend researchers seek to (1) advance conceptual clarity by providing clear definitions that specify the unit of analysis, degree of digitality and the sociotechnical nature of digital platforms; (2) define the proper scoping of digital platform concepts by studying platforms on different architectural levels and in different industry settings; and (3) advance methodological rigour by employing embedded case studies, longitudinal studies, design research, data-driven modelling and visualisation techniques. Considering current developments in the business domain, we suggest six questions for further research: (1) Are platforms here to stay? (2) How should platforms be designed? (3) How do digital platforms transform industries? (4) How can data-driven approaches inform digital platforms research? (5) How should researchers develop theory for digital platforms? and (6) How do digital platforms affect everyday life?
    Keywords: digital platforms; digital infrastructures; digital ecosystems; digital innovation; research agenda
    JEL: J50
    Date: 2017–04–11
  4. By: Ramana Nanda; Matthew Rhodes-Kropf
    Abstract: An extensive literature on venture capital has studied asymmetric information and agency problems between investors and entrepreneurs, examining how separating entrepreneurs from the investor can create frictions that might inhibit the funding of good projects. It has largely abstracted away from the fact that a startup typically does not have just one investor, but several VCs that come together in a syndicate to finance a venture. In this chapter, we therefore argue for an expansion of the standard perspective to also include frictions within VC syndicates. Put differently, what are the frictions that arise from the fact that there is not just one investor for each venture, but several investors with different incentives, objectives and cash flow rights, who nevertheless need to collaborate to help make the venture a success? We outline the ways in which these coordination frictions manifest themselves, describe the underlying drivers and document several contractual solutions used by VCs to mitigate their effects. We believe that this broader perspective provides several promising avenues for future research.
    JEL: D8 G24
    Date: 2018–04
  5. By: Giannone, Domenico (Federal Reserve Bank of New York); Lenza, Michele (European Central Bank and ECARES); Primiceri, Giorgio E. (Northwestern University, CEPR, and NBER)
    Abstract: We compare sparse and dense representations of predictive models in macroeconomics, microeconomics, and finance. To deal with a large number of possible predictors, we specify a prior that allows for both variable selection and shrinkage. The posterior distribution does not typically concentrate on a single sparse or dense model, but on a wide set of models. A clearer pattern of sparsity can only emerge when models of very low dimension are strongly favored a priori.
    Keywords: model selection; shrinkage; high dimensional data
    JEL: C11 C53
    Date: 2018–04–01
  6. By: Andreas Fuster; Matthew Plosser; Philipp Schnabl; James Vickery
    Abstract: Technology-based ("FinTech") lenders increased their market share of U.S. mortgage lending from 2% to 8% from 2010 to 2016. Using market-wide, loan-level data on U.S. mortgage applications and originations, we show that FinTech lenders process mortgage applications about 20% faster than other lenders, even when controlling for detailed loan, borrower, and geographic observables. Faster processing does not come at the cost of higher defaults. FinTech lenders adjust supply more elastically than other lenders in response to exogenous mortgage demand shocks, thereby alleviating capacity constraints associated with traditional mortgage lending. In areas with more FinTech lending, borrowers refinance more, especially when it is in their interest to do so. We find no evidence that FinTech lenders target marginal borrowers. Our results suggest that technological innovation has improved the efficiency of financial intermediation in the U.S. mortgage market.
    JEL: G21 G23
    Date: 2018–04
  7. By: Antti Säynäjoki
    Abstract: Digitalization is the current trend across all sectors, which is expected to provide new business opportunities, resource efficiency and climate change mitigation. One of the new key resources brought by digitalization is an improved knowledge of clients or users through new data. This knowledge is usually created with business intelligence, i.e. data gathering and analysis. Business intelligence has been the most important success factor for companies in several industries, in particular information technology. Data is gathered, distributed and analysed by platforms, which also promote external innovation. In most successful cases this has lead to successful ecosystems where owners, users and complementors innovate and develop content for the platform in cooperation with each other. However, similar platforms and ecosystems have not yet emerged in a large scale to the real estate and construction (REC) sector.On REC sector smart buildings provide an excellent opportunity to gather data of conditions, indoor environment and user behaviour. This data can be used for developing the current products and services as well as new ones. However, currently only a small share of the companies on the REC sector actually have an access to the data provided by smart buildings. Additionally, the data is seldom distributed outside the company borders. Although the commercialization of external data is currently a hot topic in the academic literature, the companies on REC sector have not been utilizing it yet. External distribution of the data would also enable companies who do not have access to the data to develop their products and services accordingly.Large scale distribution and utilization of data would promote cost and resource efficiency in current products and services as well as new business oppotunities. In addition to building specific data, big data generated by large number of smart buildings would rapidly provide valuable information for example to building design, construction material manufacturing, energy production and insurance sectors just to name a few. The transformation to external data commercialization and distribution would require some stakeholder reorganization in the sector . The roles in the ecosystems benefiting of data distribution have already been discussed in the literature. Lerning from the roles and platforms on other industries, the REC sector should be able to better benefit of the new opportunities of digitalization.
    Keywords: Big data; business intelligence; Digitalization; platform; smart building
    JEL: R3
    Date: 2017–07–01
  8. By: Peters, Frank
    Abstract: Resume "The business or video game is a multi-player game" investigates the economic impact of collaboration in a two-sided platform market in the cultural industries. The dissertation attempts to find explanations for success in the cultural industries and (in particular) the consequences of cooperation with the platform provider. This is done by means of a quantitative study of games from the time that distribution took place by means of DVDs: the period 2001-2010. This is the first time that an integrated model for success in the video game industry has been developed. Markets are increasingly becoming dominated by platforms: accommodation is booked via, music via Spotify, video via Netflix, information via Google and second-hand products via E-Bay. In the video game industry, it is the console that brings buyers and suppliers together. In such a market structure the behavior of the platform influences the results of the provider of video games and vice versa. The results of this research are therefore interesting not only for video game industry but also for other platform markets in the cultural industries. The cultural industry consists of the industries in which mass-production of cultural goods takes place. The film, music, TV and radio, fashion and game industry are examples. These industries have the following characteristics: - Extreme economies-of-scale: Production of the first copy is very expensive, reproduction is almost free; - An oversupply of creative work: production often takes place as a passion and leisure activity; - Presence of the "nobody knows" principle: Success cannot be predicted in advance, nor can it be explained retrospectively. Products are extremely divided into hits and misses so that only a small part of the offer is profitable. Conclusions: - The success of a game depends on the activities of different actors: the game development studio, the publisher, and the console manufacturer. In that sense, game business is a multi-player game; - Although the "nobody knows" principle is present, there are factors that increase the chances of success: building on success from the past and larger production budgets lead to better games, which in turn sell better. Pre-release marketing (finding market segments where competition is limited and timing of the release) also leads to more successful games. This is more important than post-release marketing. - There are cross-platform effects: games released for multiple platforms also score better on the individual platforms. - Production of games based on success from other sectors (e.g., a game in a movie) is not a successful strategy. - Platforms are often very dominant in the market. Cooperation with a platform operator (through the sale of the studio or the conclusion of exclusive contracts) has a positive result on the revenue of a game, cooperation with an independent publisher does not have this. Platforms are a necessary evil that can be better embraced: cooperation leads to more successful releases. The dissertation enriches management theory in the outlined context. It is concluded that: - Considerations for different forms of cooperation differ: for mergers transaction cost considerations, for exclusive contracts increasing opportunities for the future. - Platform operators have different motives for working with studios than independent publishers. In particular, platform operators mainly want to retain high-quality capabilities, independent publishers are looking for future differentiation options in particular. Samenvatting “The business of video game is a multi-player game” onderzoekt de economische effecten van sa-menwerking in een tweezijdige platformmarkt in de cultural industries. In het proefschrift wordt getracht verklaringen te vinden voor succes in de culturele industrie en (met name) de gevolgen van samenwerking met de platformaanbieder in kaart gebracht. Dit gebeurt door middel van een kwanti-tatief onderzoek van games uit de tijd dat distributie nog plaats vond door middel van DVD’s: de periode 2001-2010. Dit is de eerste keer dat er een integraal model voor succes in de videogame industrie is ontwikkeld. Het economisch verkeer verloopt in toenemende mate via platforms: accommodatie wordt geboekt via, muziek via Spotify, video via Netflix, informatie via Google en tweedehands pro-ducten via Marktplaats. In de videogame industrie is het de console die vragers en aanbieders van games bij elkaar brengt. In zo’n marktstructuur beïnvloedt het gedrag van het platform de resultaten van de aanbieder van video games en andersom. Uitkomsten van het onderzoek zijn daarom niet alleen voor video game industrie interessant, maar ook voor andere platformmarkten in de cultural industries. De culturele industrie bestaat uit de bedrijfstakken waarin culturele goederen in massa worden ge-produceerd. De film-, muziek-, TV en radio-, mode- en game industrie zijn voorbeelden. Deze be-drijfstakken hebben de volgende kenmerken: - Zeer sterke economies-of-scale: Productie van het eerste exemplaar is zeer kostbaar, reproductie is bijna gratis; - Een overaanbod van creatief werk: productie vindt vaak plaats als passie en vrijetijdsbesteding; - Aanwezigheid van het “nobody knows”-principe: Succes is niet vooraf te voorspellen, noch achteraf te verklaren. Producten zijn extreem verdeeld in hits en missers, waardoor slechts een klein deel van het aanbod rendabel is. Conclusies: - Het succes van een game is afhankelijk van de activiteiten van verschillende actoren: de game ont-wikkelstudio, de uitgever en de console fabrikant. In die zin is game business een multi-player ga-me; - Hoewel het “nobody knows” principe aanwezig is, zijn er factoren die de kans op succes vergroten: voortbouwen op succes uit het verleden en grotere productiebudgetten leiden tot betere games, die op hun beurt beter verkopen. Pre-release marketing (het opsporen van marktsegmenten waar de concurrentie beperkt is en timing van de release) leidt eveneens tot succesvollere games. Dit is be-langrijker dan post-release marketing. - Er zijn cross-platform effecten: games uitgebracht voor meerdere platforms scoren ook beter op de individuele platforms. - Productie van games gebaseerd op succes uit andere sectoren (bijvoorbeeld een game bij een film) is geen succesvolle strategie. - Platforms zijn vaak zeer dominant in de markt. Samenwerking met een platformexploitant (door verkoop van de studio of het afsluiten van exclusieve contracten) heeft een positief resultaat op de opbrengsten van een game, samenwerken met een onafhankelijke uitgever heeft dit niet. Platforms zijn een noodzakelijk kwaad dat beter omarmt kan worden: samenwerking leidt tot succesvollere releases. Het proefschrift verrijkt de managementtheorie in de geschetste context. Er wordt geconcludeerd dat: - Overwegingen voor verschillende vormen van samenwerking verschillen: voor overnames trans-actiekostenoverwegingen, voor exclusieve contracten het vergroten van mogelijkheden voor de toe-komst. - Platform exploitanten hebben andere motieven om samen te werken met studio’s dan onafhanke-lijke uitgeverijen. Platform exploitanten willen met name kwalitatief hoogwaardige capaciteit aan zich binden, onafhankelijke uitgevers zoeken met name toekomstige differentiatiemogelijkheden.
    Date: 2018
  9. By: -
    Abstract: En este documento se identifican ciertas barreras y obstáculos que limitan la expansión de la economía digital en la región, se proponen algunas líneas de acción estratégica y se presentan un conjunto de objetivos dirigidos a orientar las decisiones de política en materia de conectividad, comercio electrónico, desempeño postal, defensa del consumidor, inclusión financiera digital y medios de pago en línea y cibersreguridad, además de revisarse los capítulos sobre aspectos digitales de los acuerdos regionales de integración económica.
    Date: 2018–04–13
  10. By: Serge Abiteboul (VALDA - Value from Data - Inria de Paris - Inria - Institut National de Recherche en Informatique et en Automatique)
    Abstract: Computer science and digital information have profoundly transformed business. This transformation comes with immense promises but also considerable risks. It is obviously as false to believe in all these promises as to be convinced of the inevitability of all the risks. We consider different aspects that illustrate key aspects of the digital transformation of business, its promises and its risks.
    Abstract: L’informatique a profondément transformé le commerce. Cette transformation s’est accompagnée d’immenses promesses mais également de risques considérables. Il est évidemment aussi faux de croire à toutes ces promesses que de se persuader de l’inévitabilité de tous ces risques. Dans cet article, nous considérerons certains aspects essentiels de la transformation du commerce par le numérique, des promesses et des risques. L’objectif de cet article est de présenter l’intérêt économique de la tarification algorithmique et de discuter de ses effets pro- et anticoncurrentiels. En l’absence d’études empiriques sérieuses démontrant des risques accrus de collusion, nous recommandons de ne pas réguler spécifiquement ces algorithmes.
    Date: 2018
  11. By: Christian Pfister
    Abstract: In the age of high-frequency trading in financial markets and faster payment services in account-to-account (A2A) transactions of bank retail customers, it may seem odd that the shortest maturity that is traded in the money market is overnight. This situation reflects policies implemented by central banks, which provide banks with free intraday liquidity. Such policies are difficult to ground in theory and have limitations which central banks could remedy by conducting real-time monetary policies. The article details how, following that decision, central banks could adapt some features of their monetary policy operational frameworks and of their real-time gross settlement systems. In any case, the potential benefits of such a move should be carefully weighed against the costs for the central banks, financial intermediaries and society.
    Keywords: Intraday liquidity, Real-time gross settlement systems, Monetary policy, Financial stability
    JEL: E40 E52 E58 G12 G21
    Date: 2018
  12. By: Erik Brynjolfsson; Felix Eggers; Avinash Gannamaneni
    Abstract: GDP and derived metrics (e.g., productivity) have been central to understanding economic progress and well-being. In principle, the change in consumer surplus (compensating expenditure) provides a superior, and more direct, measure of the change in well-being, especially for digital goods, but in practice, it has been difficult to measure. We explore the potential of massive online choice experiments to measure consumers’ willingness to accept compensation for losing access to various digital goods and thereby estimate the consumer surplus generated from these goods. We test the robustness of the approach and benchmark it against established methods, including incentive compatible choice experiments that require participants to give up Facebook for a certain period in exchange for compensation. The proposed choice experiments show convergent validity and are massively scalable. Our results indicate that digital goods have created large gains in well-being that are missed by conventional measures of GDP and productivity. By periodically querying a large, representative sample of goods and services, including those which are not priced in existing markets, changes in consumer surplus and other new measures of well-being derived from these online choice experiments have the potential for providing cost-effective supplements to existing national income and product accounts.
    JEL: E01 O0 O4
    Date: 2018–04
  13. By: Jan-Christian Gerlach; Guilherme Demos; Didier Sornette
    Abstract: We present a detailed bubble analysis of the Bitcoin to US Dollar price dynamics from January 2012 to February 2018. We introduce a robust automatic peak detection method that classifies price time series into periods of uninterrupted market growth (drawups) and regimes of uninterrupted market decrease (drawdowns). In combination with the Lagrange Regularisation Method for detecting the beginning of a new market regime, we identify 3 major peaks and 10 additional smaller peaks, that have punctuated the dynamics of Bitcoin price during the analyzed time period. We explain this classification of long and short bubbles by a number of quantitative metrics and graphs to understand the main socio-economic drivers behind the ascent of Bitcoin over this period. Then, a detailed analysis of the growing risks associated with the three long bubbles using the Log-Periodic Power Law Singularity (LPPLS) model is based on the LPPLS Confidence Indicators, defined as the fraction of qualified fits of the LPPLS model over multiple time windows. Furthermore, for various fictitious present analysis times $t_2$, positioned in advance to bubble crashes, we employ a clustering method to group LPPLS fits over different time scales and the predicted critical times $t_c$ (the most probable time for the start of the crash ending the bubble). Each cluster is argued to provide a plausible scenario for the subsequent Bitcoin price evolution. We present these predictions for the three long bubbles and the four short bubbles that our time scale of analysis was able to resolve. Overall, our predictive scheme provides useful information to warn of an imminent crash risk.
    Date: 2018–04
  14. By: Afees A. Salisu; Kazeem Isah (Centre for Econometric and Allied Research, University of Ibadan); Lateef O. Akanni (Department of Economics, University of Lagos,Akoka, Lagos, Nigeria)
    Abstract: This paper attempts to establish that some inherent features of the Bitcoin price can be exploited to produce better forecast results for stock prices. It does so by constructing predictive models for stock prices of G7 countries with symmetric and asymmetric prices of Bitcoin. The underlying statistical properties of Bitcoin prices such as persistence and conditional heteroscedasticity are captured in the estimation process using the Westerlund and Narayan (2015) estimator that allows for such effects in forecasting. There are two striking findings from the analysis. First, the results suggest that accounting for asymmetries is more likely to enhance the predictive power of Bitcoin in forecasting stock prices regardless of the data sample and forecast horizon. Secondly, the Bitcoin-based predictive model for stock prices, particularly the asymmetric variant, outperforms the Fractionally Integrated Autoregressive Moving Average (ARFIMA) model. While there are concerns as to whether the cryptocurrencies are veritable substitutes to the conventional financial assets, their close link with the developed stock exchanges such as those in the G7 countries suggests that they share some common characteristics such as news effects [asymmetries] which can be exploited when forecasting the behaviour of stock prices.
    Keywords: Stock price, Bitcoin price, G7 countries, Forecast evaluation
    JEL: C52 C53 G11 G14 G17
    Date: 2018–04
  15. By: Rakesh Jain
    Abstract: The return on an asset class are a reflection of the country's macro-environment. Indian real estate sector had been a preferred alternate asset class largely due to positive macro-environmental factors like sustained GDP growth and Foreign Direct Investment. Indian real estate sector exhibited a unique characteristic wherein the primary as well as secondary sales transactions contained a high cash component to circumvent the high rate of taxation. In fact Indian real estate had gained the popularity as a preferred investment destination among masses due to its ability to consume and generate hordes of cash. The resultant cash economy was indirectly incentivized by the availability of high denomination currency notes which facilitated the transactions. The attractiveness of real estate as investment destination was also facilitated by the fact that through cash absorption, the sector could provide a safe heaven for the unaccounted wealth.Government of India, in a sudden move on November 8, 2016, demonetized the high denomination currency notes of 500 and 1000 Rupees. This move had a tremendous impact on economy due to the fact that 86% of currency notes in circulation were of high denomination. The demonetization forced the routing of all the high currency notes through the banking channel. Moreover Government of India imposed restrictions on cash withdrawal from the banks to discourage cash economy. This demonetization drive resulted in vacuuming of old high denomination currency notes from the circulation. Though a new currency note of 500 and 2000 Rupees were introduced by the Reserve Bank of India, the demonetization drive will result in limited availability of cash in the economy. The limited availability of cash will De-incentivize the efforts to evade taxes on real estate transactions through cash payments.The author aims to study the impact of this macroeconomic factor resulting in to less cash situation on the Indian real estate as a choice of alternate asset class among Indian investors especially in the residential markets of National Capital Region of Delhi. The study will include a survey of the perspective investors through structured questionnaire in the Indian real estate sector on their choice of asset class for future investments. This study will help the investors to assess the attractiveness of Real Estate in India as investment decision in the post demonetization era.
    Keywords: Demonetization; Demonetization impact on Real Estate; Indian Real Estate Sector; Investment in Indian Real Estate; Real Estate Asset Class
    JEL: R3
    Date: 2017–07–01
  16. By: Molefe B. Phirinyane (Botswana Institute for Development Policy Analysis)
    Abstract: The use of technology in citizen participation has grown phenomenally in developed countries, but is emergent in most developing countries. Accessibility and the functionality of information and communication technologies such as telephone, cellular phone and internet have profound effect on citizen participation in politics, policy making and implementation. This study applies a case study methodology to understand the relationship between technology and the nature of active citizen participation in developing countries, using Botswana as a case example. The penetration and use of the information and communication technologies in politics and the policy-making process in Botswana remains low. Botswana first laid in place the policy, legal and institutional frameworks to guide its development of ICTs in her governance system. The country has since made significant gains on providing ICT infrastructure countrywide, and reducing the costs associated with accessing these where available. The country has registered improvements on all indicators on Technological readiness, further strengthening the country’s path on the adoption ICTs in its governance process. The findings suggest that countries should take the responsibility for, and be committed to, creating a conducive environment for the ICT industry to thrive while not losing focus of the ultimate objective of citizen participation.
    Keywords: Botswana, citizen participation, e-government, Information and Communication Technologies.
    JEL: E32 R10
    Date: 2016–10
  17. By: Tröbs, Marcel; Mengen, Andreas
    Abstract: Bereits heute sehen sich Unternehmen mit der Herausforderung konfrontiert, die für sie relevanten Informationen aus dem riesigen Datenmeer herauszufischen und neue Datenquellen zu erschließen. Der Controller als Navigator der Unternehmensführung ist daher mehr denn je gefragt, dem Management den richtigen Kurs bei diesen Themen zu weisen. Gleichzeitig bietet Big Data den Controllern neue Möglichkeiten und Werkzeuge zur besseren Aufgabenerfüllung (vgl. Gadatsch, 2013, S. 23, 28). Aber besitzen Controller auch die erforderliche Kompetenz, diese neuen Werkzeuge zu beherrschen? Oder besteht sogar die Gefahr, dass die Präzision moderner Analysetools die Controlling-Funktion bald überflüssig machen wird? Um diese Fragen beantworten zu können, ist es Gegenstand dieser Arbeit herauszufinden, welche Auswirkungen Big Data auf die Arbeit des Controllers haben wird. Insbesondere die Identifikation und Analyse von Chancen und Risiken der damit verbundenen Entwicklungen soll dazu dienen, geeignete Handlungsempfehlungen für Controller beim Thema Big-Data auszusprechen.
    Date: 2018
  18. By: Sara Calligaris (OECD); Chiara Criscuolo (OECD); Luca Marcolin (OECD)
    Abstract: This paper examines the evolution of firm mark-ups across 26 countries for the period 2001-14. It also discusses and investigates empirically how this can be related to the degree of digital transformation in sectors. Four main facts emerge: i) mark-ups are increasing over the period, on average across country; ii) this result is driven by firms at the top of the mark-up distribution, while the bottom half of the distribution exhibits a flat trend over time; (iii) mark-ups are higher in digital-intensive sectors than in less-digitally intensive sectors; (iv) mark-up differentials between digitally-intensive and less-digitally-intensive sectors have increased significantly over time.
    Keywords: Digitalization, Mark-Ups, Market Power, Technological Change
    JEL: D2 L1 L2 O33
    Date: 2018–04–25
  19. By: Kevin J. Boudreau
    Abstract: Platforms often have “crowds” of amateurs working on them as complementors, in other cases professional entrepreneurs—or both. What can a platform owner do to implement these outcomes? I document evidence on mobile app developers showing that just small, incremental changes in platform design—related to the bare minimum costs required to build an app and factors affecting non-pecuniary payoffs—can lead the “bottom-to-fall-out” of the market to amateurs. Where the bottom-falls-out, there is a flood of lowest-quality developers who nonetheless are long-lived on the platform and engage in relatively high development activity. I find no evidence that amateurs crowd-out development activity of top developers in this context. Moreover, the bottom-falling-out is associated with the generation of significantly greater numbers of highest-quality products. I discuss several interpretations.
    JEL: D04 E26 J4 L1 L8 O3
    Date: 2018–04
  20. By: Grous, Alexander
    Abstract: The global airline industry is on the cusp of a connectivity revolution. Currently 3.8 billion passengers fly annually, with only around 25% of planes in the air offering them some form of onboard broadband. This is often of variable quality, with patchy coverage, slow speeds and low data limits. By 2035, it is likely that inflight connectivity will be ubiquitous across the world. Non-broadband-enabled ‘traditional’ sources such as seat upgrades, onboard duty free and baggage fees are currently worth around $60 billion to airlines. For the first time, this research study bridges the gap between current market estimates of traditional revenues and the forecasting of incremental revenue from broadbandenabled cabins. Using IATA passenger traffic data and forecasts of growth, including a near doubling of passenger numbers to 7.2 billion annually, this research study forecasts that broadband-enabled ancillary revenue will reach an estimated $30 billion for airlines by 2035. Overall, a total market of $130 billion of additional revenues will be created. As well as airlines, this market will include content providers, retail goods suppliers, hotel and car suppliers, airlines and advertisers. The four primary areas of broadband enabled ancillary revenue have been defined in the research are: • Broadband access • Advertising, encompassing interruptive advertising and pay-per-click • E-commerce and destination shopping • Streaming, including premium content The research looks at six key regions: Asia Pacific, Europe, North America, Africa, Middle East and Latin America, analysed using both primary and secondary research, drawing on available data of passenger numbers and of forecasted aircraft growth globally. By 2035, broadband-access revenue is forecast to remain the highest single source of new ancillary revenues, accounting for 53% of the total market, followed by e-commerce and destination shopping at 40% of the market, with advertising revenue accounting for 8% of the market, and premium content at around 2.5% of the market. Per passenger, this means an increase of 1,129% in broadband enabled ancillary revenue from the current $0.23 per passenger in 2018, to $2.82 in 2028, reaching $4 per passenger by 2035. With current traditional ancillary revenue for airlines of around $17 per passenger, the research study projects that broadband connectivity will add around 24% to ancillary revenues for airlines in real terms by 2035. Growth in broadband-enabled ancillary revenue will be driven by the introduction of new generation satellites. These address the key requirements sought by passengers that have been lacking to date in many cases, most importantly high bandwidth and continuous connectivity. Passenger surveys continue to confirm that these are integral components of quality, which remains the primary driver of broadband take-up, and that passengers are willing to pay more for high quality onboard connectivity. When combined with a well-developed ecosystem of content, products and services, this can spur the development of related ancillary revenues from both leisure and business passengers on Low Cost Carriers and Full Service Carriers. Globally, Low Cost Carriers (LCCs) are forecast to account for around $11 billion of revenues, and Full Service Carriers (FSC) around $19 billion. The capitalisation of opportunities presented by a connected cabin with high quality continuous coverage will depend on the degree that airlines are willing to engage with third party suppliers, retailers, destination companies, content providers and others. The research study forecasts that by 2035, from the estimated $30 billion airline share of the total broadbandenabled revenue of $130 billion, Asia Pacific has the highest figure at $10.3 billion, followed by Europe with $8.2 billion, North America with $7.6 billion, Latin America with $1.9 billion, Middle East at $1.3 billion and Africa with $0.58 billion. The opportunity for revenue growth from broadband enabled services is dependent on airlines commercialising passenger data to a much greater degree than occurs currently. Today, only 11% of existing airline schemes offer personalised rewards based on purchase history or location data. More loyal customers can generate a 23% premium in profitability and revenue to airlines. Airlines today have failed to fully develop the potential opportunities offered by passenger data. Airlines are in the driver’s seat for realising a massive opportunity. By bringing together right technological, retail, advertising and content partners, airlines will be able to offer passengers the services they are asking for, whilst improving the bottom line. With the number of passengers currently flying every day forecast to almost double by 2035 this is a ‘sky high’ multibillion dollar opportunity for the global airline industry.
    JEL: J1
    Date: 2017
  21. By: Crosetto, P.; Regner, T.
    Abstract: Crowdfunding recently emerged as an alternative funding channel for entrepreneurs. We use pledge-level data from Startnext, the biggest German platform, to gain insights on funding dynamics and pledgers’ motivations. We find that the majority of projects that eventually succeed are not on a successful track at 75% of their funding period. These late successes are boosted by information cascades during the final 25% of the funding duration. We conclude – in contrast with earlier literature – that project success is only partially path-dependent. While early pledges do anticipate project success, a lack of them does not necessarily mean that projects will fail. Interviews and questionnaire responses indicate that projects’ communication efforts play a role in making severely under track projects succeed eventually. Moreover, our dataset uniquely allows us to quantify the extent of self funding. Self pledges account for about 10% of all initial pledges and 9% of all pledges that secure funding. Nonetheless, the late surges at severely under track projects are mostly driven by external funders. Furthermore, we find no evidence of subsequent herding triggered by self pledges.
    JEL: L26 D03 G32 O31
    Date: 2018
  22. By: Tara Sinclair (George Washington University); Mariano Mamertino (Indeed Hiring Lab)
    Keywords: international migration, labor mobility, online labor markets, European Union, Brexit
    JEL: J6 J4 F22 O15
  23. By: Canidio, Andrea
    Abstract: Unlike traditional open-source projects, developers of open-source blockchain-based projects can reap large financial rewards thanks to a modern form of seignorage. I study to what extent this novel form of financing generates incentives to innovate. I consider a developer working on an open-source blockchain-based protocol that can be used only in conjunction with a protocol-specific crypto-token. This token is first sold to investors via an auction (the ICO phase) and then traded on a frictionless financial market. I establish that seignorage is effective at providing capital and at generating incentives to develop the protocol. Its effectiveness is however limited by the fact that, in all equilibria of the game, in each post-ICO period there is a positive probability that the developer sells all his tokens and, as a consequence, no development occurs.
    Keywords: Blockchain, decentralized ledger technologies, Initial Coin Offering (ICO), seignorage, innovation, incentives, open source
    JEL: L17 L26 O31
    Date: 2018
  24. By: Thierry Bontems (Pacte, Laboratoire de sciences sociales - UPMF - Université Pierre Mendès France - Grenoble 2 - UJF - Université Joseph Fourier - Grenoble 1 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Sabine Goulin (DAPEQ - DAPEQ - Délégation à l'Aide au Pilotage Et à la Qualité - UL - Université de Lorraine, UL - Université de Lorraine); Caroline Censier-Calmus (URCA - Université de Reims Champagne-Ardenne); Françoise Taillebot (ECL - École Centrale de Lyon - Université de Lyon)
    Abstract: Abstract (150 words max): Providing data and transforming them into valuable information can prove quite a complex exercise especially when the managers due to use them are independently located. Under such conditions, quality assurance becomes a real challenge. Starting from feedbacks in a research management project as well as in setting up a network of quality managers in France (RELIER network), the purpose of this article is to show how the use of new technologies in computer framework guarantees the fundamental concepts of quality system.
    Abstract: Mettre à disposition de la donnée, travailler ensemble cette donnée pour en faire de l’information relève d’un exercice complexe en terme de partage d’information entre les membres d’une équipe, qui plus est lorsque les membres de l’équipe sont situés dans des espaces géographiques distant. Garantir la qualité de ces mêmes données relève alors d’une gageure. L’objet de cet article est de démontrer, en partant de retour d’expérience issus du pilotage de projet de recherche et du pilotage de réseau de cadre de pilotage comment l’utilisation de technologies innovantes en terme d’infrastructure informatique permet de garantir les concepts fondamentaux de la qualité
    Keywords: networking ,cloud computing , management
    Date: 2018–04–04
  25. By: Azar, José (IESE Business School); Marinescu, Ioana E. (University of Pennsylvania); Steinbaum, Marshall (Roosevelt Institute); Taska, Bledi (Burning Glass Technologies)
    Abstract: Using data on the near-universe of online US job vacancies collected by Burning Glass Technologies in 2016, we calculate labor market concentration using the Herfindahl-Hirschman index (HHI) for each commuting zone by 6-digit SOC occupation. The average market has an HHI of 3,953, or the equivalent of 2.5 recruiting employers. 54% of labor markets are highly concentrated (above 2,500 HHI) according to the DOJ/FTC guidelines. Highly concentrated markets account for 17% of employment. All plausible alternative market definitions show that more than 33% of markets are highly concentrated, suggesting that employers have market power in many US labor markets.
    Keywords: monopsony, oligopsony, labor markets, competition policy
    JEL: J21 J23 J42 K21 L11
    Date: 2018–03
  26. By: Stiroh, Kevin J. (Federal Reserve Bank of New York)
    Abstract: Remarks at the Community Bankers Conference, Federal Reserve Bank of New York, New York City.
    Keywords: business models; regulatory environment; Economic Growth Regulatory Relief and Consumer Protection Act; fintech; asset quality; cybersecurity
    Date: 2018–04–18
  27. By: Stephen Roulac
    Abstract: It is broadly recognized that real estate has been subjected to a veritable tsunami of change forces dramatically impacting:Property use: Air BnBRetail shopping – AmazonWorkspaces – WeWork and other co-working modelsCapital access – FinTech innovations and crowd fundingUrbanization – prospectively accelerated by autonomous vehicles and proliferating high-rise constructionThese changes are not necessarily reflected in the focus of research topics investigated by the property research community. Mainstream real estate textbooks are even more innocent of these forces. Consequently, the academy is not well serving students studying property.This paper explores implications of change influence the concerns of property scholars and the contents of property curriculums. The study emphasis is on textbooks for introductory real estate principles. This research updates and extends prior research published in Journal of Real Estate Literature two decades ago ("Foundation of the Knowledge Structure: Review of Real Estate Principles Texts,") and a decade ago ("Shifting Foundations of the Real Estate Knowledge Structure").While the majority of real estate textbooks evaluated in the 1994 review were no longer in the market a decade later, significantly, the books that survived were more traditional. The survivors had become more non-traditional, placing greater emphasis on topics other than law and brokerage. Books not in the market in 1994, were even more traditional. Strikingly, economics was less emphasized in 2004 than a decade earlier. While the economy represented real-time empirical validation of Schumpeter’s classic principle of creative destruction, the same conclusion does not apply to the real estate principles textbooks.This paper provides a contemporary 2017 perspective on what is covered in introductory real estate principles textbooks, compares and contrasts that coverage to contemporary discovery research, and considers how topic emphasis has changed.At a time when the economy is more complex and factors that influence future performance of property goods and services are greater rather than fewer, many studying real estate principles are likely to find that their textbooks are less than adequate. Those pursuing real estate careers, whose initial knowledge foundation is built upon deficient, rather than superior professional services, shall be more likely to miscalculate in their decision-making and in making capital commitment.
    Keywords: Education; Innovation; Textbooks
    JEL: R3
    Date: 2017–07–01
  28. By: Schivardi, Fabiano; Schmitz, Tom
    Abstract: Since the middle of the 1990s, productivity growth in Southern Europe has been substantially lower than in other developed countries. In this paper, we argue that this divergence was partly caused by inefficient management practices, which limited Southern Europe's gains from the IT Revolution. To quantify this effect, we build a multi-country general equilibrium model with heterogeneous firms and workers. In our model, the IT Revolution generates divergence for three reasons. First, inefficient management limits Southern firms' productivity gains from IT adoption. Second, IT increases the aggregate importance of management, making its inefficiencies more salient. Third, IT-driven wage increases in other countries stimulate Southern high-skill emigration. We calibrate our model using firm-level evidence, and show that it can account for 28% of Italy's, 39% of Spain's and 67% of Portugal's productivity divergence with respect to Germany between 1995 to 2008.
    Keywords: Divergence; IT; Management; Southern Europe; Technology adoption; TFP
    JEL: L23 O33
    Date: 2018–04

This nep-pay issue is ©2018 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.