nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2018‒07‒16
27 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Access of micro-, small and medium-sized enterprises (MSMEs) to finance in North and Central Asia By Hiroaki Ogawa
  2. Swedish Riksbank Notes and Enskilda Bank Notes: Lessons for Digital Currencies By Ben Fung; Scott Hendry; Warren E. Weber
  3. Herding behavior in cryptocurrency markets By Obryan Poyser
  4. Do Digital Information Technologies Help Unemployed Job Seekers Find a Job? Evidence from the Broadband Internet Expansion in Germany By Gürtzgen, Nicole; Nolte, André; Pohlan, Laura; van den Berg, Gerard J.
  5. Exploring the Interconnectedness of Cryptocurrencies using Correlation Networks By Andrew Burnie
  6. Public Blockchain versus Private blockhain By Dominique Guegan
  7. Exogenous Drivers of Cryptocurrency Volatility - A Mixed Data Sampling Approach To Forecasting By Thomas Walther; Tony Klein; ;
  8. Can citizens transform companies? Monitoring of the online reputation of companies by consumers By Santiago Rosado I Orquín
  9. Advertising as a Reminder: Evidence from the Dutch State Lottery By Chen He; Tobias J. Klein
  10. Selling Strategic Information in Digital Competitive Markets By David Bounie; Antoine Dubus; Patrick Waelbroeck
  11. Fighting Mobile Crime By Rosario Crino; Giovanni Immordino; Gülen Karakoç-Palminteri; Salvatore Piccolo
  12. Valuing Non-Market Benefits of Participatory Sport Events Using Willingness to Travel: Payment Card vs Random Selection with Mitigation of Hypothetical Bias By John C. Whitehead; Pamela Wicker
  13. Net Neutrality, Prioritization and the Impact of Content Delivery Networks By Baake, Pio; Sudaric, Slobodan
  14. China's digital transformation. Why is artificial intelligence a priority for chinese R&D? By Guilhem Fabre
  15. The empirical verification of money demand in case of India: Post-reform era By Adil, Masudul Hasan; Haider, Salman; Hatekar, Neeraj
  16. China’s Social Credit System: A Mark of Progress or a Threat to Privacy? By Martin Chorzempa; Paul Triolo; Samm Sacks
  17. Welfare Effects of Switching Barriers Through Permanence Clauses: Evidence from the Mobiles Market in Colombia By Álvaro Riascos; Juan David Martín; Natalia Serna
  18. Secure personal data administration in the social networks: the case of voluntary sharing of personal data on the Facebook By Tadas Limba; Aurimas Šidlauskas
  19. A Look Inside the Box: Combining Aggregate and Marginal Distributions to Identify Joint Distributions By Marie-Hélène Felt
  20. Fanning the Flames of Hate: Social Media and Hate Crime By Müller, Karsten; Schwarz, Carlo
  22. Classifying occupations using web-based job advertisements: an application to STEM and creative occupations By Antonio Lima; Hasan Bakhshi
  23. Essays on political economy of finance and fintech By Zhu, Haikun
  24. Keeping up with the e-Joneses: Do online social networks raise social comparisons? By Sabatini, Fabio; Sarracino, Francesco
  25. Reconstruction methods for networks: the case of economic and financial systems By Tiziano Squartini; Guido Caldarelli; Giulio Cimini; Andrea Gabrielli; Diego Garlaschelli
  26. "Reinterpreting the Arbitration Legislation for Online Awards in Indonesia" By Rina Shahriyani Shahrullah
  27. The evolving networks of debtor-creditor relationships with addition and deletion of nodes: a case of P2P lending By Lin Chen; Ping Li; Qiang Li

  1. By: Hiroaki Ogawa (Subregional Office for North and Central Asia, ESCAP)
    Abstract: Access to financing is one of the fundamental conditions for individuals and small businesses to be able to invest and become entrepreneurs. Several economies in the Asia-Pacific region, including those in the North and Central Asian subregion, however, lag in facilitating such opportunities for potential entrepreneurs. This situation hampers the private sector’s potential contribution to the development of the country, and impedes the process of inclusive income and wealth creation. It might be tempting to advise countries in North and Central Asia to take advantage of FinTech, and hopefully they should aspire to do so: new advances such as crowdfunding or blockchain technology offer great opportunities and leapfrogging is possible. However, currently most countries in the subregion lack basic infrastructure and essential conditions, such as reliable networks and free Internet, to make such a revolution possible on a massive scale. Hence, Governments should ensure the provision of such infrastructure and promote simpler, better-established technologies, such as mobile payments. Opening the mobile market to experienced foreign companies to provide mobile banking services would be another option with considerable potential. Finally, policymakers should also consider enhancing the Internet so that people really consider it as a trustworthy option to seek investment/financing opportunities. The introduction of frameworks to regulate FinTech, so that investors do not face regulatory uncertainty and feel more empowered to invest, would be welcome. As with other fast-evolving technologies, it would be advisable that they take stock of lessons learned from the experiences of other countries which are ahead of the curve.
  2. By: Ben Fung; Scott Hendry; Warren E. Weber
    Abstract: This paper examines the experience of Sweden with government notes and private bank notes to determine how well the Swedish experience corresponds to that of Canada and the United States. Sweden is important to study because it has had government notes in circulation for more than 350 years, and it had government notes before private bank notes. Several differences between the experience of Sweden and that of Canada and the U.S. emerge. (i) Swedish bank notes were safe; in some cases, those of Canada and the U.S. were not. (ii) At certain times, Swedish government notes were not safe; government notes in Canada and the U.S. always were. (iii) Swedish private bank notes were a uniform currency without government intervention. Uniformity required government intervention in Canada and the U.S. (iv) Private notes and government notes coexisted in all three countries until governments took actions to drive private bank notes out of circulation. Using the experience of the three countries, the paper concludes that fiduciary digital currencies will likewise not be perfectly safe without government intervention. Further, the introduction of government digital currency will not drive out existing private digital currencies nor will it preclude private digital currencies from entering the market. Government intervention likely will be required for private and government digital currencies to be a uniform currency.
    Keywords: Bank notes, Digital Currencies, Financial services
    JEL: E41 E42 E58
    Date: 2018
  3. By: Obryan Poyser
    Abstract: There are no solid arguments to sustain that digital currencies are the future of online payments or the disruptive technology that some of its former participants declared when used to face critiques. This paper aims to solve the cryptocurrency puzzle from a behavioral finance perspective by finding the parallelism between biases present in financial markets that could be applied to cryptomarkets. Moreover, it is suggested that cryptocurrencies' prices are driven by herding, hence this study test herding behavior under asymmetric and symmetric conditions and the existence of different herding regimes by employing the Markov-Switching approach.
    Date: 2018–06
  4. By: Gürtzgen, Nicole (Institute for Employment Research (IAB), Nuremberg); Nolte, André (ZEW Mannheim); Pohlan, Laura (University of Mannheim); van den Berg, Gerard J. (University of Bristol)
    Abstract: This paper studies effects of the introduction of a new digital mass medium on reemployment of unemployed job seekers. We combine data on high-speed (broadband) internet availability at the local level with individual register data on the unemployed in Germany. We address endogeneity by exploiting technological peculiarities in the network that affected the roll-out of high-speed internet. The results show that high-speed internet improves reemployment rates after the first months of the unemployment spell. This is confirmed by complementary analysis with individual survey data suggesting that online job search leads to additional formal job interviews after a few months in unemployment.
    Keywords: unemployment, online job search, information frictions, matching technology, search channels
    JEL: J64 K42 H40 L96 C26
    Date: 2018–05
  5. By: Andrew Burnie
    Abstract: Correlation networks were used to detect characteristics which, although fixed over time, have an important influence on the evolution of prices over time. Potentially important features were identified using the websites and whitepapers of cryptocurrencies with the largest userbases. These were assessed using two datasets to enhance robustness: one with fourteen cryptocurrencies beginning from 9 November 2017, and a subset with nine cryptocurrencies starting 9 September 2016, both ending 6 March 2018. Separately analysing the subset of cryptocurrencies raised the number of data points from 115 to 537, and improved robustness to changes in relationships over time. Excluding USD Tether, the results showed a positive association between different cryptocurrencies that was statistically significant. Robust, strong positive associations were observed for six cryptocurrencies where one was a fork of the other; Bitcoin / Bitcoin Cash was an exception. There was evidence for the existence of a group of cryptocurrencies particularly associated with Cardano, and a separate group correlated with Ethereum. The data was not consistent with a token's functionality or creation mechanism being the dominant determinants of the evolution of prices over time but did suggest that factors other than speculation contributed to the price.
    Date: 2018–06
  6. By: Dominique Guegan (Labex ReFi - UP1 - Université Panthéon-Sorbonne, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this document, we introduce some thinkings relative to the concept of blockchain, how it works and what are the issues for the banking system. Thus, first we recall what cryptography is, then we introduce the concept of blockchain as a protocol for transmitting information in a secure way, distinguishing two possible approaches: the decentralized public approach and the centralized private approach. The notion of cryptocurrency is introduced and two examples of applications of the public blockchains that are the bitcoin and the etherium are provided.
    Keywords: cryptography ,blockchain
    Date: 2017–04
  7. By: Thomas Walther; Tony Klein; ;
    Abstract: We apply the GARCH-MIDAS framework to forecast the daily, weekly, and monthly volatility of four highly capitalized Cryptocurrencies (Bitcoin, Etherium, Litecoin, and Ripple) as well as the Cryptocurrency index CRIX. Based on the prediction quality, we determine the most important exogenous drivers of volatility in Cryptocurrency markets. We ?nd that the Global Real Economic Activity outperforms all other economic and ?nancial drivers under investigation. Only the average forecast combination results in lower loss functions. This indicates that the information content of exogenous factors is time-varying and the model averaging approach diversi?es the impact of single drivers.
    Keywords: Bitcoin, Cryptocurrencies, GARCH, Mixed Data Sampling, Volatility
    JEL: C10 C58 G11
    Date: 2018–06
  8. By: Santiago Rosado I Orquín (Department of of Business Administration and Marketing, Universitat Jaume I, Castellón, Spain)
    Abstract: The objective of this research is to see how in a new social context, the network society, a consequence of the 3rd Industrial Revolution or ICT revolution, a new relational model between business and the citizens is established. In this new digital context, companies see how it shapes around them, but not only for their performance, also for a long been known and widely studied intangible called Corporate Reputation. It has acquired a new dimension in the Internet environment, as an aggregation of impressions of different stakeholders of the companies. The new network society has tools for monitoring the actions of companies and it has the ability to communicate the results of this monitoring through tools such as social networks, the blogosphere and the called new journalism (citizen journalism or civic journalism). Establishing analogies with John Keane's Monitory Democracy, we examine whether this new relational model between the citizens and businesses affects the creation of Corporate Reputation of companies and if the changes in this intangible affect the economic results of companies. In this cyberspace, where economic and civic actors interact with each other using (more or less) the same tools, it is where we place the question this article tries to answer as to whether the citizens in the digital environment are able, through their actions and interactions, to monitor and influence firms’ reputation and, therefore, their functioning and their practices. Finally, three examples are included of reputational conditions for companies, as well as a brief analysis of the consequences.
    Keywords: Network society, Reputation, Social Responsibility, Monitoring
    JEL: M14 Z13 A13
    Date: 2018
  9. By: Chen He; Tobias J. Klein
    Abstract: We use high frequency data on TV and radio advertising together with data on online sales for lottery tickets to measure the short run effects of advertising. We find them to be strong and to last for up to about 4 hours. They are the bigger the less time there is until the draw. We develop the argument that this finding is consistent with the idea that advertisements remind consumers to buy a ticket and that consumers value this. Then, we point out that in terms of timing the interests of the firm and the consumers are aligned: consumers wish to be reminded in a way that makes them most likely to consider buying a lottery ticket. We present direct evidence that this does not only affect the timing of purchases, but leads to market expansion. Then, we develop a tractable dynamic structural model of consumer behavior, estimate the parameters of this model and simulate the effects of a number of counterfactual dynamic advertising strategies. We find that relative to the actual schedule it would be valued by the consumers and profitable for the firm to spread advertising less over time and move it to the last days before the draw.
    Keywords: dynamic demand, limited attention, reminder advertising, adoption model
    JEL: M37 D12 D83
    Date: 2018
  10. By: David Bounie; Antoine Dubus; Patrick Waelbroeck
    Abstract: This paper investigates the strategies of a data broker in selling information to one or to two competing firms that can price-discriminate consumers. The data broker can strategically choose any segment of the consumer demand (information structure) to sell to firms that implement third-degree price-discrimination. We show that the equilibrium profits of the data broker are maximized when (1) information identifies the consumers with the highest willingness to pay; (2) consumers with a low willingness to pay remain unidentified; (3) the data broker sells two symmetrical information structures. The data broker therefore strategically sells partial information on consumers in order to soften competition between firms. Extending the baseline model, we prove that these results hold under first-degree price-discrimination.
    Keywords: data broker, information structure, price-discrimination
    JEL: D40 D80 L50 D43
    Date: 2018
  11. By: Rosario Crino (Università Cattolica del Sacro Cuore di Milano, CEPR and CESifo.); Giovanni Immordino (Università di Napoli Federico II and CSEF); Gülen Karakoç-Palminteri (Università di Milano Bicocca); Salvatore Piccolo (Università di Bergamo and CSEF)
    Abstract: We develop a model in which two countries choose their enforcement levels non- cooperatively, in order to deter native and foreign individuals from committing crime in their territory. We assume that crime is mobile, both ex ante (migration) and ex post (fleeing), and that criminals who hide abroad after having committed a crime in a country must be extradited back. We show that, when extradition is not too costly, countries overinvest in enforcement compared to the cooperative outcome: insourcing foreign criminals is more costly than paying the extradition cost. By contrast, when extradition is sufficiently costly, a large enforcement may induce criminals to flee the country in which they have perpetrated a crime. Surprisingly, the fear of extraditing criminals enables countries to coordinate on the e¢ cient (cooperative) outcome.
    Keywords: Crime, Enforcement, Extradition, Fleeing, Migration
    JEL: K14 K42
    Date: 2018–06–27
  12. By: John C. Whitehead; Pamela Wicker
    Abstract: This study estimates the monetary value of participation in a cycling event using a willingness to travel question. The empirical analysis is based on three years of data (2014 2016) from a post-race survey (n=976). Respondents were asked for their likelihood of revisiting the event in the following year contingent on different additional driving distances. Return visitation is higher in the randomly selected question than in the payment card format. The random selection format also produces larger willingness to pay estimates. The combination and joint estimation of stated and revealed preference data allows identifying the magnitude of hypothetical bias. Key Words: Contingent behavior method; intention to revisit; sport participation; travel cost; willingness to pay
    Date: 2018
  13. By: Baake, Pio (DIW Berlin); Sudaric, Slobodan (HU Berlin)
    Abstract: We analyze competition between Internet Service Providers (ISPs) where consumers demand heterogeneous content within two Quality-of-Service (QoS) regimes, Net Neutrality and Paid Prioritization, and show that paid prioritization increases the static efficiency compared to a neutral network. We also consider paid prioritization intermediated by Content Delivery Networks (CDNs). While the use of CDNs is welfare neutral, it results in higher consumer prices for internet access. Regarding incentives to invest in network capacity we show that discriminatory regimes lead to higher incentives than the neutral regime as long as capacity is scarce, while investment is highest in the presence of CDNs.
    Keywords: content delivery network; investment; net neutrality; prioritization;
    JEL: L13 L51 L96
    Date: 2018–06–25
  14. By: Guilhem Fabre (EHESS - Ecole des Hautes Etudes en Sciences Sociales)
    Date: 2018–06–19
  15. By: Adil, Masudul Hasan; Haider, Salman; Hatekar, Neeraj
    Abstract: In the evident of globalised world economy and changing economic structure, the traditional policies are required to be close examination. This is true particularly in case of developing countries, like India where new economic policies have had been changing visibly since 1990s. Therefore, in the new economic policy regime one of the important building block of policy is the money demand, which needs to be examined again. Present study examines the stability issues of money demand in case of India, using quarterly data from 1996:Q2 to 2016:Q3. With the help of autoregressive distributed lag model (ARDL) or bounds testing approach of cointegration, it has been concluded that there exists stable long run relationship among variables under consideration in the post reform period.
    Keywords: new economic policy; money demand; autoregressive distributed lag model; India
    JEL: E02 E4 E41 E5 E58
    Date: 2018–06–03
  16. By: Martin Chorzempa (Peterson Institute for International Economics); Paul Triolo (New America and Eurasia Group); Samm Sacks (Center for Strategic and International Studies)
    Abstract: No government has a more ambitious and far-reaching plan to harness the power of data to change the way it governs than the Chinese government. Its Social Credit System (SCS), laid out in a plan released in 2014 and still under construction, aims to extend financial credit scoring systems—commonly used by financial institutions in the United States—to other areas of government regulation, from contract enforcement to food safety, corruption, and environmental protection. The plan is to link public and private data on financial and social behavior across China, use the data to evaluate behavior of individuals and organizations, and punish or reward them according to certain agreed upon standards of appropriate conduct. While many of the SCS goals are laudable, the scale and potential impact pose serious risks to individuals and organizations that could result in the opposite of the promised effects. There is still time to shape the SCS to become an effective tool to deal with some of China’s most intractable domestic problems and at the same time minimize the odds of it becoming an Orwellian system of social control.
    Date: 2018–06
  17. By: Álvaro Riascos; Juan David Martín; Natalia Serna
    Abstract: During 2014, the Comisión de Regulación de Comunicaciones in Colombia enacted a Resolution by which permanence clauses or fixed-length terms in mobile telecommunications contracts were prohibited for network operators offering bundled mobile terminals and voice plans. Prohibition was enacted under the argument permanence clauses create switching costs, reduce competition, and generate information asymmetries. In this study we measure the impact of the Resolution on consumer, firm, and social welfare by estimating the structural demand for mobile terminals and conducting two counterfactual scenarios. We show switching costs by means of permanence clauses reduce consumer utility and increase the variance of the utility distribution. We also show the Colombian market for mobile terminals has been better off without permanence clauses, with both consumers and firms experiencing gains from the prohibition. However, variation in firm surplus is explained mostly by the variation in profits of incumbent network operators than by the variation in profits of firms selling terminals at cash price. Our study contributes to the literature of bundled sales and switching costs and is crucial from the perspective of regulation and industrial policy in the telecommunications sector.
    Keywords: switching costs; permanence clauses; structural demand; telecommunications; fixed-length contracts
    JEL: L50 L13 L11
    Date: 2017–07–03
  18. By: Tadas Limba (Mykolas Romeris University); Aurimas Šidlauskas (Mykolas Romeris University)
    Abstract: In view of the changes taking place in society, social progress and the achievements of science and technology, the protection of fundamental rights must be strengthened. The aim of the article is to analyse the principles and peculiarities of safe management of the personal data in social networks. In this scientific article, methods of document analysis, scientific literature review, case study and generalization are used. Consumers themselves decide how much and what kind of information to publicize on the Facebook social network. In order to use the third-party applications, users at the time of authorization must confirm that they agree to give access to their personal data otherwise the service will not be provided. Personal data of the Facebook user comprise his/her public profile including user's photo, age, gender, and other public information; a list of friends; e-mail mail; time zone records; birthday; photos; hobbies, etc. Which personal data will be requested from the user depends on the third-party application. Analysis of the legal protection of personal data in the internet social networks reveals that it is limited to the international and European Union legal regulation on protection of the personal data in the online social networks. Users who make publicly available a large amount of personal information on the Facebook social network should decide on the issue if they want to share that information with third parties for the use of their services (applications). This article presents a model for user and third party application interaction, and an analysis of risks and recommendations to ensure the security of personal data of the user.
    Keywords: security of the data,social network,personal data,third-party applications
    Date: 2018–03–30
  19. By: Marie-Hélène Felt
    Abstract: This paper proposes a new bootstrap procedure for mean squared errors of robust small-area estimators. We formally prove the asymptotic validity of the proposed bootstrap method and examine its finite sample performance through Monte Carlo simulations. The results show that our procedure performs well and outperforms existing ones. We also apply our procedure to the estimation of the total volume and value of cash, debit card and credit card transactions in Canada as well as in its provinces and subgroups of households. In particular, we find that there is a significant average annual decline rate of 3.1 percent in the volume of cash transactions, and that this decline is relatively higher among high-income households living in heavily populated provinces. Our bootstrap estimator also provides indicators of quality useful in selecting the best small-area predictors from among several alternatives in practice.
    Keywords: Bank notes, Digital Currencies, Econometric and statistical methods
    JEL: C C14 D14 E41
    Date: 2018
  20. By: Müller, Karsten (University of Warwick); Schwarz, Carlo (University of Warwick)
    Abstract: This paper investigates the link between social media and hate crime using Facebook data. We study the case of Germany, where the recently emerged right-wing party Alternative fur Deutschland (AfD) has developed a major social media presence. We show that right-wing anti-refugee sentiment on Facebook predicts violent crimes against refugees in otherwise similar municipalities with higher social media usage. To further establish causality, we exploit exogenous variation in major internet and Facebook outages, which fully undo the correlation between social media and hate crime. We further find that the effect decreases with distracting news events; increases with user network interactions; and does not hold for posts unrelated to refugees. Our results suggest that social media can act as a propagation mechanism between online hate speech and real-life violent crime.Keywords: social media, hate crime, minorities, Germany, AfD JEL Classification: D74, J15, Z10, D72, O35, N32, N34.
    Date: 2018
  21. By: Regine Soppo Ntouba (UTCC - University of Thai Chamber of Commerce)
    Date: 2018–06–05
  22. By: Antonio Lima; Hasan Bakhshi
    Abstract: Rapid technological, social and economic change is having significant impacts on the nature of jobs. In fast-changing environments it is crucial that policymakers have a clear and timely picture of the labour market. Policymakers use standardised occupational classifications, such as the Office for National Statistics’ Standard Occupational Classification (SOC) in the UK to analyse the labour market. These permit the occupational composition of the workforce to be tracked on a consistent and transparent basis over time and across industrial sectors. However, such systems are by their nature costly to maintain, slow to adapt and not very flexible. For that reason, additional tools are needed. At the same time, policymakers over the world are revisiting how active skills development policies can be used to equip workers with the capabilities needed to meet the new labour market realities. There is in parallel a desire for more granular understandings of what skills combinations are required of occupations, in part so that policymakers are better sighted on how individuals can redeploy these skills as and when employer demands change further. In this paper, we investigate the possibility of complementing traditional occupational classifications with more flexible methods centred around employers’ characterisations of the skills and knowledge requirements of occupations as presented in job advertisements. We use data science methods to classify job advertisements as STEM or non-STEM (Science, Technology, Engineering and Mathematics) and creative or non-creative, based on the content of ads in a database of UK job ads posted online belonging to Boston-based job market analytics company, Burning Glass Technologies. In doing so, we first characterise each SOC code in terms of its skill make-up; this step allows us to describe each SOC skillset as a mathematical object that can be compared with other skillsets. Then we develop a classifier that predicts the SOC code of a job based on its required skills. Finally, we develop two classifiers that decide whether a job vacancy is STEM/non-STEM and creative/non-creative, based again on its skill requirements.
    Keywords: labour demand, occupational classification, online job adverts, big data, machine learning, STEM, STEAM, creative economy
    JEL: C18 J23 J24
    Date: 2018–07
  23. By: Zhu, Haikun (Tilburg University, School of Economics and Management)
    Abstract: This thesis consists of two chapters in political economy of finance and one chapter in FinTech. My central interest is to study the interaction between socioeconomic stability and financial activities of corporations and financial institutions. The first chapter focuses on whether economic shocks trigger labour unrest and fuel political extremism. The second chapter provides an analysis as to how state-owned firms use internal funds to address sudden social unrest events. The final chapter investigates if new peer-to-peer (P2P) lending technology undermines macroprudential regulation and adds risk to financial stability.
    Date: 2018
  24. By: Sabatini, Fabio; Sarracino, Francesco
    Abstract: Online social networks, such as Facebook, amplify the occasions for social comparisons which are detrimental to well-being. The authors test the hypothesis that the use of social networking sites (SNS) increases social comparisons using Italian data from the Multipurpose Household Survey, and European data from Eurobarometer. The results suggest that SNS users have a higher probability to compare their achievements with those of others. This evidence is robust to endogeneity concerns. The authors conclude that, by increasing the opportunities for social comparisons, SNS can be an engine of income dissatisfaction for their users.
    Keywords: social networks,social networking sites,social comparisons,satisfaction with income,relative deprivation
    JEL: D83 I31 O33 Z1 Z13
    Date: 2018
  25. By: Tiziano Squartini; Guido Caldarelli; Giulio Cimini; Andrea Gabrielli; Diego Garlaschelli
    Abstract: When studying social, economic and biological systems, one has often access to only limited information about the structure of the underlying networks. An example of paramount importance is provided by financial systems: information on the interconnections between financial institutions is privacy-protected, dramatically reducing the possibility of correctly estimating crucial systemic properties such as the resilience to the propagation of shocks. The need to compensate for the scarcity of data, while optimally employing the available information, has led to the birth of a research field known as network reconstruction. Since the latter has benefited from the contribution of researchers working in disciplines as different as mathematics, physics and economics, the results achieved so far are still scattered across heterogeneous publications. Most importantly, a systematic comparison of the network reconstruction methods proposed up to now is currently missing. This review aims at providing a unifying framework to present all these studies, mainly focusing on their application to economic and financial networks.
    Date: 2018–06
  26. By: Rina Shahriyani Shahrullah (Universitas Internasional Batam, Jalan Gajah Mada, 29442, Batam, Indonesia Author-2-Name: Elza Syarief Author-2-Workplace-Name: Universitas Internasional Batam, Jalan Gajah Mada, 29442, Batam, Indonesia Author-3-Name: Agustina Fitrianingrum Author-3-Workplace-Name: Universitas Internasional Batam, Jalan Gajah Mada, 29442, Batam, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: "Objective –The use of online arbitration is more convenient for disputing parties as their submissions can be archived by automated document management systems and be reviewed from any location, at any time. Yet, the process of online arbitration in Indonesia remains uncertain due to the fact that Indonesian arbitration legislation does not contain any provisions relating to online arbitration. It is also questioned whether online arbitration awards are domestic or international under that legislation. In order to answer the questions, this research examines and reinterprets Indonesian arbitration legislation to argue for the status of online arbitration and its awards in Indonesia. Methodology/Technique – This study adopts normative legal research by examining existing legislation and literatures relating to arbitration. Findings – The findings of this study show that the legislation does permit online arbitration because Indonesian IT legislation facilitates the use of electronic communication and devices for this type of arbitration. However, the status of awards rendered in the online arbitration process remains uncertain. This is because Indonesia has not adopted the UNCITRAL Model Law. Consequently, the legislation merely categorizes online arbitration awards based on whether they are rendered within Indonesian territory (domestic awards) or outside of Indonesia (international awards). Originality/value – The use of technology has penetrated business transactions and in some cases can give rise to legal disputes. Therefore, those who engage in online transactions should consider the type of dispute resolution mechanism they employ. In the context of online businesses, it may be beneficial for disputing parties to settle their disputes through online arbitration due to its ability to transcend national boundaries, and the potential enforceability of its awards. "
    Keywords: Online Arbitration; Awards; Dispute Resolution; Arbitration Law; Indonesia.
    JEL: K2 K29
    Date: 2018–06–27
  27. By: Lin Chen; Ping Li; Qiang Li
    Abstract: P2P lending activities have grown rapidly and have caused the huge and complex networks of debtor-creditor relationships. The aim of this study was to study the underlying structural characteristics of networks formed by debtor-creditor relationships. According attributes of P2P lending, this paper model the networks of debtor-creditor relationships as an evolving networks with addition and deletion of nodes. It was found that networks of debtor-creditor relationships are scale-free networks. Moreover, the exponent of power-law was calculated by an empirical study. In addition, this paper study what factors impact on the exponent of power-law besides the number of nodes. It was found that the both interest rate and term have significantly influence on the exponent of power-law. Interest rate is negatively correlated with the exponent of power-law and term is positively correlated with the exponent of power-law. Our results enriches the application of complex networks
    Date: 2018–06

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