nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2018‒10‒15
thirty-two papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. The Impact of Blockchain Technology on the Real Estate Sector Using Smart Contracts By Uzair, Muhammad Mansab; Karim, Emadul; Sultan, Prof. Dr. Shair; Ahmed, Syed Sheeraz
  2. Digital Trade and Market Openness By Javier López González; Janos Ferencz
  3. Does the Internet Increase the Job Finding Rate? Evidence from a Period of Internet Expansion By Denzer, Manuel; Schank, Thorsten; Upward, Richard
  4. What Drives Bitcoin Volatility? By Byström, Hans; Krygier, Dominika
  5. The performance of marketplace lenders: Evidence from lending club payment data By Kräussl, Roman; Kräussl, Zsofia; Pollet, Joshua; Rinne, Kalle
  6. Peer influence in the workplace: Evidence from an enterprise digital platform By Haoyuan Liu; Wen Wen; Andrew B. Whinston
  7. Digitalization and development cooperation: An assessment of the debate and its implications for policy By Heimerl, Veronika; Raza, Werner
  8. The role of enterprise modeling in digital transformation : an exploratory study By Hafsi Mouaad; Saïd Assar
  9. Economists (and Economics) in Tech Companies By Susan Athey; Michael Luca
  10. The impact of financial inclusion on rural food security experience: a perspective from low-and middle-income countries By Baborska, Renata; Hernandez-Hernandez, Emilio; Magrini, Emiliano; Morales-Opazo, Cristian
  11. Competing with Superstars in the Mobile App Market By Daniel Ershov
  12. Introduction By Asongu, Simplice
  13. Walking and Talking: The Effect of Smartphone Use and Group Conversation on Pedestrian Speed. By Lexie Reynolds Walsh; Tingsen Xian; David Levinson
  14. Technological Change and Financial Innovation in Banking: Some Implications for Fintech By Frame, W. Scott; Wall, Larry D.; White, Lawrence J.
  15. Could mobile money applications improve farm productivity? Insights from rural Mozambique By Yao, Becatien H.; Shanoyan, Aleksan
  16. Consumer Credit Card Choice: Costs, Benefits and Behavioural Biases By Mary-Alice Doyle
  17. "The future of valuation An integrated academic and practical view on the impact of digitalisation on real estate valuation" By Florian Hackelberg; Matthias Kirsten
  18. Failing to engage? Big data, smart cities and the built environment sector: an analysis of international case studies By Tim Dixon; Martin Sexton; Jorn Van De Wetering
  19. Organizing time banks: Lessons from matching markets By ANDERSSON, Tommy; CSEH, Ágnes; EHLERS, Lars; ERLANSON, Albin
  20. Structural conditions for currency internationalisation: International finance and the survival constraint By Angrick, Stefan
  21. Harnessing the Double-edged Sword via Routing: Information Provision on Ride-hailing Platforms By Leon Yang Chu; Zhixi Wan; Dongyuan Zhan
  22. Is a Blockchain-based conveyance system the next step in the financialisation of housing? The case of Sweden By PROSKUROVSKA Anetta; DÖRRY Sabine
  23. E-Commerce Adoption in the Amazon Era: Evidence from the Green Industry By Torres, Ariana; Behe, Bridget; Barton, Susan
  24. Blockchain, fractional ownership, and the future of creative work By Whitaker, Amy; Kräussl, Roman
  25. Assessing e-commerce productivity for French micro firms using propensity score matching By Ouaida, Fadila; El Hajjar, Samer
  26. Exploring the Feasibility of Rural Broadband Expansion via the Cooperative Business Model By Schmit, Todd M.; Severson, Roberta M.
  27. Platform, Anonymity, and Illegal Actors: Evidence of Whac-A-Mole Enforcement from Airbnb By Jian Jia; Liad Wagman
  28. Internet Search Volume Data as a Predictor of Consumers’ Daily Food Consumption By Kim, Sung-Yong; Kim, Taeyoung; Lee, Kyunsik
  29. Dockless in Sydney: The Rise and Decline of Bikesharing in Australia. By Capucine Heymes; David Levinson
  30. Impact of microfinance on poverty and household income in Rural Areas in Nigeria By Jolaoso, Enoch; Asirvatham, Jebaraj
  31. "Unconventional Monetary Policies and Central Bank Profits: Seigniorage as Fiscal Revenue in the Aftermath of the Global Financial Crisis" By Joerg Bibow
  32. Impact of Touristification on Housing Market in Seoul By Min-Sung Kim; Jinseok Kim; Boram Lee

  1. By: Uzair, Muhammad Mansab; Karim, Emadul; Sultan, Prof. Dr. Shair; Ahmed, Syed Sheeraz
    Abstract: The block chain technology has been in the topic of much discussion due to its successful application in the crypto currency known as “Bitcoin" which has investment experts, economists, billion dollar financial institutes, big banks as well as governments taking sides on whether it should be legitimized and used as a currency or make it illegal to be used as a means of exchange. However, experts from different field like supply chain management and even from the medical field are more interested in how the block chain technology’s decentralized record keeping and numerous other benefits can be of use to them in their fields of work. This study concentrates on the block chain being used for real estate record keeping, since most geography’s have different procedures for record keeping, this study focuses on Defence Housing Authority in Karachi to check what the impact of applying the block chain technology to this area in Karachi would have on investors, real estate agents, residents and the government.
    Keywords: Block chain, Real Estate, Karachi, Pakistan
    JEL: L8 L85 R3
    Date: 2018–04
  2. By: Javier López González; Janos Ferencz
    Abstract: This paper aims to provide policy makers with a broad overview of the issues that the digital transformation raises for trade with a view to informing how these might be reflected in trade policy design. It discusses how digitalisation has changed international trade and provides estimates of the impact of increased digital connectivity on trade. It shows that digitalisation is particularly important for trade in more complex manufactures and digitally deliverable services; that it helps parties better exploit benefits from trade agreements; and that it gives rise to new complementarities between goods and services. The paper also discusses some trade-related regulatory challenges. Engaging in digital trade in goods means paying attention to a broader range of supporting services, such as logistics or e-payments. Similarly, the ability to engage in trade in services, particularly those that are digitally delivered, is also, in part, affected by market access in ICT goods. The paper argues that making the most out of the digital transformation for trade requires approaching market openness more holistically, thinking about measures affecting goods, services and digital connectivity more jointly, and about measures affecting the full value chain, including the enablers of digital trade and tackling all these through greater international cooperation.
    Keywords: digital connectivity, digital trade, Digital transformation, e-commerce, gravity, market openness
    JEL: F13 F14 O33
    Date: 2018–10–08
  3. By: Denzer, Manuel (University of Mainz); Schank, Thorsten (University of Mainz); Upward, Richard (University of Nottingham)
    Abstract: We examine the impact of household access to the internet on job finding rates in Germany during a period (2006-2009) in which internet access increased rapidly, and job-seekers increased their use of the internet as a search tool. During this period, household access to the internet was almost completely dependent on connection to a particular technology (DSL). We therefore exploit the variation in connection rates across municipalities as an instrument for household access to the internet. OLS estimates which control for differences in individual and local area characteristics suggest a job-finding advantage of about five percentage points. The IV estimates are substantially larger, but much less precisely estimated. However, we cannot reject the hypothesis that, conditional on observables, residential computer access with internet was as good as randomly assigned with respect to the job-finding rate. The hypothesis that residential internet access helped job-seekers find work because of its effect on the job search process is supported by the finding that residential internet access greatly increased the use of the internet as a search method. We find some evidence that household access to the internet reduced the use of traditional job search methods, but this effect is outweighed by the increase in internet-based search methods.
    Keywords: job search, unemployment, job finding rate, internet, DSL
    JEL: J64 C26 L86
    Date: 2018–08
  4. By: Byström, Hans (Department of Economics, Lund University); Krygier, Dominika (Department of Economics, Lund University)
    Abstract: We look at the link between the volatility in the Bitcoin market and the volatility in other related traditional markets, i.e. the gold, currency and stock market. We also try to answer if the volatility in the Bitcoin market can be explained by retail investor-driven internet search volumes or, perhaps, by the general level of risk in the financial system, as measured by two market-wide risk indicators. We use daily, weekly as well as monthly data covering the period 2011 to 2017. Correlations and regressions reveal a weak but positive contemporaneous link between changes in the Bitcoin volatility and changes in the volatility of the trade weighted USD currency index. A stronger positive link is found between Bitcoin volatility and search pressures on Bitcoin-related words on Google, particularly for the word “bitcoin”. To further assess what drives Bitcoin volatility we turn to a VAR-analysis and impulse response functions which point at Google searches for the word “bitcoin”, and to some extent the USD currency index volatility, being the only determinants of future Bitcoin volatility. We then use our findings to make improved predictions of Bitcoin volatility based on Google search activity. Interestingly, the significant link that we find between Google search volumes and market volatility points at retail investors, rather than large institutions, being the most important drivers of Bitcoin volatility. We believe that we contribute to the literature in several ways and that our results could be of significant practical importance if the Bitcoin market continues to grow at the current speed.
    Keywords: Bitcoin; volatility; internet searches; Google Trends; gold; VIX
    JEL: C80 D80 G10
    Date: 2018–10–03
  5. By: Kräussl, Roman; Kräussl, Zsofia; Pollet, Joshua; Rinne, Kalle
    Abstract: Direct financing of consumer credit by individual investors or non-bank institutions through an implementation of marketplace lending is a relatively new phenomenon in financial markets. The emergence of online platforms has made this type of financial intermediation widely available. This paper analyzes the performance of marketplace lending using proprietary cash flow data for each individual loan from the largest platform, Lending Club. While individual loan characteristics would be important for amateur investors holding a few loans, sophisticated lenders, including institutional investors, usually form broad portfolios to benefit from diversification. We find high risk-adjusted performance of approximately 40 basis points per month for these basic loan portfolios. This abnormal performance indicates that Lending Club, and similar marketplace lenders, are likely to attract capital to finance a growing share of the consumer credit market. In the absence of a competitive response from traditional credit providers, these loans lower costs to the ultimate borrowers and increase returns for the ultimate lenders.
    Keywords: marketplace lending,peer-to-peer,portfolio performance,household finance,financial innovation,finance and technology
    JEL: G12 G21
    Date: 2018
  6. By: Haoyuan Liu (McCombs School of Business, University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX 78712); Wen Wen (McCombs School of Business, University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX 78712); Andrew B. Whinston (McCombs School of Business, University of Texas at Austin, 2110 Speedway Stop B6500, Austin, TX 78712)
    Abstract: We study how the broadcasting of peer success on an enterprise digital platform affects worker productivity. Using sales workers in an IT service company as our research context, we leverage the unexpected resignation of several HR staff members as an exogenous shock to the sharing of peer success and implement a difference-in-differences estimation. The empirical evidence shows that sales workers exert less effort when peer success messages are absent. We next investigate how the framing of peer success messages may generate different forms of peer influence, and particularly explore two ways of framing—messages that highlight peer’s ability (i.e., ability-based messages) and messages that highlight peer’s effort (i.e., effort-based messages). We find that although both types of peer success messages have a positive influence on worker productivity, there exists important heterogeneity. For ability-based messages, workers respond most strongly if their peers are socially close or have worse historical performance. By contrast, the effect of effort-based messages does not vary by peer characteristics.
    Keywords: peer success, work effort, productivity, peer influence, online organizational communication, peer pressure, difference-in-differences
    JEL: J24 L86 M54
    Date: 2018–09
  7. By: Heimerl, Veronika; Raza, Werner
    Abstract: Digitalization technologies, such as automation, robotization, artificial intelligence and Big Data are increasingly shaping economic processes. In public discourse, extreme outlooks are widespread. Either digital technologies will provide the solution to most contemporary problems, or dystopian scenarios claim that digital technologies make human labor redundant for production processes, resulting in soaring unemployment rates and widespread social disintegration. Against this backdrop, research on the impacts of digitalization on developing countries is still at an early stage. This briefing paper provides a critical summary of the literature on the challenges and potentials of digitalization for developing economies. A sober account of the historical evidence suggests that both euphoria and dystopian views are misplaced. The major policy challenge for development cooperation will consist in supporting LDC governments in their efforts to manage the effects of the economic and social transition process brought about by digitalization.
    Keywords: digitalization,automation,robotization,technological revolution,development cooperation,developing countries
    Date: 2018
  8. By: Hafsi Mouaad (DSI - Département Systèmes d'Information - TEM - Télécom Ecole de Management - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School); Saïd Assar (DSI - Département Systèmes d'Information - TEM - Télécom Ecole de Management - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School, LITEM - Laboratoire en Innovation, Technologies, Economie et Management - UEVE - Université d'Évry-Val-d'Essonne - IMT-BS - Institut Mines-Télécom Business School)
    Abstract: Digital transformation (DT) is a challenging issue for all companies and organizations whatever different is their business environments. DT is about business process, customer experience and business models; it relies on strong and lasting digital capabilities. Conducting DT projects in companies requires the evolution of existing information systems (IS). As Enterprise Modeling is an essential tool for managing the evolution of IS, we hypothesize that it can play an active role in guiding DT endeavors. The goal of this paper is to investigate this proposal through a case study conducted in a large financial firm. The study shows the essential role Enterprise Modeling plays in identifying the most important and relevant places to make changes in the IS in order to accommodate the ongoing DT in the company.
    Abstract: La transformation numérique est un enjeu incontournable qui se joue dans des environnements très différents et au travers de problématiques extrêmement variées pour les entreprises. En effet le numérique envahit la société et l'économie à un rythme accéléré, les canaux numérique se multiplient et leurs usages montent en puissance auprès des clients finaux, cela amène des bouleversements dans les modèles opérationnels, les modèles économiques avec parfois des impacts très importants sur toute la chaine de valeurs. De ce fait, les besoins d'évolutions partielles du système d'information sont fréquents et la gestion de la transformation numérique doit dorénavant être considérée comme une caractéristique permanente du système d'information. La transformation constante des métiers et des techniques en a complexifié la gestion. Dans cette optique, il est nécessaire de se doter de méthodes et d'outils formels spécifiquement adaptés aux différents métiers de l'entreprise et servant de support à l'ingénierie du système d'information. Dans ce cadre, cet article a pour but d'attirer l'attention sur le rôle de la modélisation d'entreprise (EM) en tant que support des prises de décision. L'objectif n'est pas de définir une méthodologie de pilotage de transformation numérique mais bien d'explorer le rôle de l'EM dans la conduite de la transformation numérique.
    Keywords: Digital transformation,Enterprise modeling,IS urbanization,Digital strategy,Enterprise strategy,Transformation numérique,Modélisation d'entreprise,Urbanisme SI,Stratégie numérique,Stratégie d'entreprise
    Date: 2017–05–17
  9. By: Susan Athey; Michael Luca
    Abstract: As technology platforms have created new markets and new ways of acquiring information, economists have come to play an increasingly central role in tech companies – tackling problems such as platform design, strategy, pricing, and policy. Over the past five years, hundreds of PhD economists have accepted positions in the technology sector. In this paper, we explore the skills that PhD economists apply in tech companies, the companies that hire them, the types of problems that economists are currently working on, and the areas of academic research that have emerged in relation to these problems.
    JEL: A11 D4 L0 M2
    Date: 2018–09
  10. By: Baborska, Renata; Hernandez-Hernandez, Emilio; Magrini, Emiliano; Morales-Opazo, Cristian
    Abstract: The paper analyses the impact of using single, combinations and the range of three different formal financial services – savings, credit and payments – on the personal food security experience in rural areas across 88 low-and middle-income countries. It takes advantage of Global Findex database and Food Insecurity Experience Scale (FIES) – both included in the 2014-round of Gallup World Poll that collects data at individual-level and comparable worldwide. Our outcome variable of interest is the individual’s probability of experiencing food insecurity related to difficulties in access to food and which we measure through FIES. Econometrically, we employ different matching techniques: entropy balancing, matching on propensity scores and fully interacting linear matching in order to assess the consistency of estimated impacts. The results indicate mixed food security effects depending on the type of service used. Use of savings accounts significantly decreases, use of credit significantly increases and use of formal payment services has no effect on the individual’s probability of experiencing food insecurity. Our findings are consistent with the view that the specific features rather than the range of services offered by formal financial sector is determinative in the final food security experience, especially when they can be assigned to positive income effects.
    Keywords: Financial inclusion, experience-based food insecurity scale, rural populations, low-and middle-income countries, impact, entropy balancing
    JEL: O12 Q18
    Date: 2018
  11. By: Daniel Ershov (Toulouse School of Economics, 21 Allee de Brienne, 31000 Toulouse, France)
    Abstract: Firms considering to enter into online markets face significant demand uncertainty and consumer search costs, with consumers most likely finding previously successful products in the market. This leads to a trade-off for potential entrants. Consider the appearance of a new very popular product (“superstar") in a particular niche. The popular product resolves demand uncertainty but also increases search costs for new entrants relative to the superstar. The interaction between these two forces could result in too much entry by low quality products, or not enough entry. I empirically examine these effects using 2012- 2013 data on mobile games in the Android mobile app store. I show that there are large increases in entry in niches where the superstar appears, unless they were already popular niches (“discovered"). I also show that the superstar reduces the quality of the new entrants and intensifies price competition.
    Keywords: mobile apps; entry; superstars; demand discovery; search
    JEL: L86 D22 L11
    Date: 2018–09
  12. By: Asongu, Simplice
    Abstract: Sustainable development within the investigated context includes the ability of African countries to meet the present economic, social and environmental needs without compromising the ability of future generations to meet their own needs. A challenging contemporary policy syndrome is the lack of funding for adequate capacities and structures essential for the realisation of the post-2015 development agenda. This introductory chapter provides highlights on all chapters covered by the book in the direction of addressing the underlying policy syndrome.
    Keywords: finance; sustainable development; Africa
    JEL: B1 B20 F35 F50 O10
    Date: 2018–01
  13. By: Lexie Reynolds Walsh; Tingsen Xian; David Levinson (TransportLab, School of Civil Engineering, University of Sydney)
    Abstract: By testing the walking speed of groups of pedestrians and of phone users, followers of groups and of phone users, and of people uninfluenced by phone users and groups, from different sites it could been seen that groups of people and phone users, and often followers of phone users, walk significantly slower than people uninfluenced by phone. In a narrow path people in groups and phone users not only slow themselves down but also slow the people behind. The rise of the smartphone correlates with a reduction in walking speed.
    Keywords: walking speed, pedestrian behaviour, phone use, distracted walking, group behaviour
    JEL: R40 L96 D83
    Date: 2018
  14. By: Frame, W. Scott (Federal Reserve Bank of Atlanta); Wall, Larry D. (Federal Reserve Bank of Atlanta); White, Lawrence J. (New York University)
    Abstract: Financial intermediation has changed dramatically over the past 30 years, due in large part to technological change. The paper first describes the role of the financial system in a modern economy and how technological change and financial innovation can affect social welfare. We then survey the empirical literatures relating to several specific financial innovations, broadly categorized as new production processes, new products or services, or new organizational forms. In each case, we also include examples of significant fintech innovations that are transforming various aspects of banking. Drawing on the literature on innovations from the 1990s and 2000s informs what we might expect from recent developments.
    Keywords: financial innovation; technological change; banking; fintech
    JEL: G21 G23 O33
    Date: 2018–10–01
  15. By: Yao, Becatien H.; Shanoyan, Aleksan
    Keywords: International Development, Ag Finance and Farm Management, Productivity Analysis and Emerging Technologies
    Date: 2018–06–20
  16. By: Mary-Alice Doyle (Reserve Bank of Australia)
    Abstract: The credit card market offers consumers a wide range of options when choosing a card. While many factors may influence this choice, this paper focuses on the main financial costs and benefits of holding a credit card. I summarise these costs and benefits as the net monetary benefit associated with a card. Theory might suggest that a rational consumer will choose a card that maximises their net monetary benefit. But in reality, consumers' decisions may be systematically biased, leading them to select higher-cost credit cards when lower-cost alternatives are available. To test this possibility, I first estimate the net monetary cost or benefit that individuals in a nationally representative survey obtain from their credit card. I then use these estimates to examine whether principles from behavioural economics – such as optimism bias, bounded rationality and present bias – can help to explain consumers' choice of credit card. I find that approximately 40 per cent of Australian credit card holders receive a positive net monetary benefit from their card (that is, they receive benefits from rewards points and their interest-free period that outweigh annual fees and interest payments). Generally these are higher-wealth and higher-income consumers. Of the remaining 60 per cent, around half break even, while half incur a net cost. Moreover, most cardholders, including those who receive a net benefit, appear not to choose cards that best suit their use patterns – for instance, I estimate that consumers who use their card to borrow and pay interest could reduce their annual costs by around $250 by choosing a more appropriate card. Behavioural explanations are consistent with some, but not all, of the patterns observed. Consumers appear to be subject to optimism bias, underestimating how much they will borrow on their card, and a subset of consumers tend to hold inflated estimates of the net monetary benefits that they receive from their card. In contrast, consumers do not appear to be present biased in responding to temporary sign-up offers. Finally, I find that around half of the respondents who made a net loss held high-cost cards, but had not considered switching to a lower-cost card; indicative evidence of cognitive, as well as practical, barriers to switching cards.
    Keywords: bounded rationality; switching behaviour; optimism bias; optimal credit card choice; present bias; retail payments
    JEL: D12 D30 D90 E42
    Date: 2018–10
  17. By: Florian Hackelberg; Matthias Kirsten
    Abstract: BackgroundIn recent years, digitalisation has been introduced in the real estate industry and enjoys a growing popularity in the field of real estate valuation in Germany. This trend has already changed the valuation practices of both large real estate service companies and small valuation companies. In addition, new players enter the real estate market with numerous valuation start-ups and online real estate platforms. Given the massive transition, that digitalisation has already brought to other industry sectors, it is clear that the shift in real estate valuation has only just begun. This leads to the question of what the ""future of the valuation"" could look like and what is already available on the market.Area of research and questions to be addressedWhen it comes to digitalisation and valuation, the following questions are currently raised among the key issues by real estate academics and practitioners alike and should be addressed during the meeting:In what way might digitalisation change the valuation process in the future? How will digitalisation affect the critical value determination of the human appraiser? Will digital processes, artificial intelligence and big data completely replace the experience and market knowledge of the appraisers? What does the field of work of the surveyor of the future look like, (eg one part technology one part science and one part human?) What are limitations of automated real estate valuation and which areas may remain as the “classical” valuationProf. Dr. Florian Hackelberg MRICS, Professor for Real Estate Valuation at the HAWK University of Applied Sciences and Arts in Germany, will introduce the outlined topic from an academic perspective, while M.Sc. Dipl.-Ing. (FH) Matthias Kirsten MRICS, valuation expert of Value AG - the valuation group will share his view on the latest trends and developments in the market
    Keywords: Appraisal; Artificial Intelligence; Big data; Digitalisation; Valuation
    JEL: R3
    Date: 2018–01–01
  18. By: Tim Dixon; Martin Sexton; Jorn Van De Wetering
    Abstract: We live in an increasingly urbanised world. Currently more than 50 per cent of the world’s population lives in cities, and this is set to grow to 70% by 2050. Recently we have seen an increasing focus on information and communications technology (ICT) to argue the case for ‘smart cities’. This places a strong emphasis on an ICT-led and a ‘data-driven’ future, which also positions the development of new products, processes, organisational methods and markets at the heart of the continued ambition for urban economic growth. The interconnected agendas of smart cities and big data and open data, on the face of it, provide bold and exciting opportunities for the built environment professions. But, what in reality will those opportunities be, and what are the challenges? This research, conducted from 2015-2016, seeks to address those questions and focuses on the city level.The research focuses on a technocratic approach to use of data in smart cities, and how we can make this accessible to built environment stakeholders. We explore the extent to which the built environment sector is engaging with the smart city at ‘programme’ scale (i.e. city-wide) and ‘project’ scale (i.e. urban data platform and other applications). To do this we compare four smart city programmes to pose three primary research questions:How have smart city programmes and projects evolved in these cities? What has shaped this evolution? What is the nature and extent of the built environment sector’s role in such programmes and projects?The research consisted of interviews in four case studies in Bristol, Milton Keynes, Amsterdam and Taipei and a UK expert workshop."
    Keywords: Big data; New Technology; Open Data; Smart City; Urban Studies
    JEL: R3
    Date: 2018–01–01
  19. By: ANDERSSON, Tommy; CSEH, Ágnes; EHLERS, Lars; ERLANSON, Albin
    Abstract: A time bank is a group of people that set up a common platform to trade services among themselves. There are several well-known problems associated with this type of time banking, e.g., high overhead costs and difficulties to identify feasible trades. This paper constructs a non-manipulable mechanism that selects an individually rational and time-balanced allocation which maximizes exchanges among the members of the time bank (and those allocations are efficient). The mechanism works on a domain of preferences where agents classify services as unacceptable and acceptable (and for those services agents have specific upper quotas representing their maximum needs).
    Keywords: Market design; time banking; priority mechanism; non-manipulability
    JEL: D82
    Date: 2018
  20. By: Angrick, Stefan
    Abstract: This paper examines the relationship between currency internationalisation and economic structure. It argues that the hierarchical and asymmetric architecture of the international monetary system imposes a "survival constraint" upon non-centre countries that obliges them to generate net inflows of the international centre currency to finance their payment commitments. It outlines why management of this constraint has historically been associated with a development approach that prioritises exports and investment over domestic consumption. It is demonstrated how this development approach creates an economic structure that is subject to path dependence and network effects, which perpetuates the role of non-centre countries as users of the international currency and the role of centre countries as suppliers of the international currency. It is argued that currency internationalisation cannot be pursued in isolation of broader economic policy, but rather requires economic structural change, political mediation, and accommodative international economic structures. Specifically, raising the international profile of the Chinese renminbi requires rebalancing of the Chinese economy towards domestic demand, whereas the status of the US dollar is intimately intertwined with the international openness of the US economy.
    Keywords: international currency,international monetary system,economic structure,economic development,liquidity flows,survival constraint
    JEL: F02 F1 F33
    Date: 2018
  21. By: Leon Yang Chu (Department of Data Science and Operations, Marshall School of Business, University of Southern California, USA); Zhixi Wan (Department of Operations and Business Analytics, Lundquist College of Business, University of Oregon, USA); Dongyuan Zhan (School of Management, University College London, UK)
    Abstract: We consider a ride-hailing platform that provides free information to taxi drivers. Upon receiving a rider's request, the platform broadcasts the rider's origin and destination to idle drivers, who accept or ignore the request depending on the profitability considerations. We show that providing such information may reduce drivers' equilibrium profit. Hence information provision is a double-edged sword: the drivers may choose to take more profitable riders via "strategic idling." When multiple drivers compete for the same request, how the platform breaks the tie affects the incentives of the drivers. We propose a routing policy that can align the incentives and achieve the first-best outcome for large systems.
    Keywords: Ride-hailing Platform; Queuing Game; Information and Incentive; Routing; Taxi Industry
    Date: 2018–09
  22. By: PROSKUROVSKA Anetta; DÖRRY Sabine
    Abstract: This paper investigates the social and economic mechanisms of a blockchain technology in the area of land administration. In particular, it focuses, first, on an emerging blockchain-based solution in Sweden to change and improve its land administration system (LAS), and, second, on the 'upgraded' LAS' potential impacts to create more complex financial derivatives based on land and the built environment. We investigate how these changes influence housing markets at the interface with financial markets and how these changes impact on the economic organisation of the different stakeholders involved in these processes. The argument is developed using the case of Sweden, where Lantmäteriet, a government agency, is pioneering the use of blockchain technology for real-estate conveyance.
    Keywords: Blockchain; land administration systems; conveyance workflow; housing; financialisation
    JEL: G28 I30 K11 L14 O43 O52
    Date: 2018–10
  23. By: Torres, Ariana; Behe, Bridget; Barton, Susan
    Keywords: Food and Agricultural Marketing, Agribusiness Economics and Management, Research Methods/Econometrics/Stats
    Date: 2018–06–20
  24. By: Whitaker, Amy; Kräussl, Roman
    Abstract: While record-making prices at art auctions receive headline news coverage, artists typically do not receive any direct proceeds from those sales. Early-stage creative work in any field is perennially difficult to value, but the valuation, reward, and incentivization for artistic labor are particularly fraught. A core challenge in studying the real return on artists' work is the extreme difficulty accessing data from when an artwork was first sold. Galleries keep private records that are difficult to access and to match to public auction results. This paper, for the first time, uses archivally sourced primary market records, for the artists Jasper Johns and Robert Rauschenberg. Although this approach restricts the size of the data set, this innovative method shows much more accurate returns on art than typical regression and hedonic models. We find that if Johns and Rauschenberg had retained 10% equity in their work when it was first sold, the returns to them when the work was resold at auction would have outperformed the US S&P 500 by between 2 and 986 times. The implication of this work opens up vast policy recommendations with regard to secondary art market sales, entrepreneurial strategies using blockchain technology, and implications about how we compensate creative work.
    Keywords: value creation,art market,property rights,blockchain,venture funding
    Date: 2018
  25. By: Ouaida, Fadila; El Hajjar, Samer
    Abstract: The benefits of e-commerce are apparent not only for small and medium enterprises (SMEs) and large firms, but also for micro firms. Hence, implementing e-sales for micro firms is worth exploring. This study examines the relationship between the use of e-commerce and productivity implications on micro firms in France using Propensity Score Matching (PSM) for the year 2012. Data used in the analysis is based on community survey "ICT & e-commerce" for micro firms. The main objective of using PSM is to assess productivity between, on the one hand, e-selling micro firms and, on the other hand, the non e-selling micro firms. The empirical results show that e-selling micro firms are more productive and have a higher turnover in 2012.
    Keywords: ICT,E-commerce,micro firms,productivity,Propensity Score Matching
    JEL: L81 O30
    Date: 2018
  26. By: Schmit, Todd M.; Severson, Roberta M.
    Keywords: Rural/Community Development, Industrial Org./Supply Chain Management, Agribusiness Economics and Management
    Date: 2018–06–20
  27. By: Jian Jia (Stuart School of Business, Illinois Institute of Technology, 565 W Adams, 4th Flr, Chicago, IL 60661); Liad Wagman (Stuart School of Business, Illinois Institute of Technology, 565 W Adams, Suite 412, Chicago, IL 60661)
    Abstract: Airbnb, a prominent sharing-economy platform, offers dwellings for short-term rent. Despite restrictions, some sellers illegally offer their accommodations, taking advantage of a degree of anonymity proffered by the platform to hide from potential enforcement. We study the extent to which enforcement works in Manhattan, one of the most active short-term rental markets, by testing the effects of two recent enforcement events. We demonstrate that prices of entire-home listings in Manhattan increase and vacancies decrease following each enforcement event, suggesting that illegal entire-home listings are being withdrawn from the market, with these effects varying depending on neighborhood characteristics. We further demonstrate that a significant portion of withdrawn listings re-enter the market under the less-enforced listing category of private rooms.
    Keywords: enforcement; anonymity; short-term rentals; platform; illegal supply
    JEL: K42 L51 R52
    Date: 2018–09
  28. By: Kim, Sung-Yong; Kim, Taeyoung; Lee, Kyunsik
    Keywords: Food and Agricultural Marketing, Food and Agricultural Policy Analysis, Demand and Price Analysis
    Date: 2018–06–20
  29. By: Capucine Heymes; David Levinson (TransportLab, School of Civil Engineering, University of Sydney)
    Abstract: In mid-2017, dockless, (or stationless) bikesharing appeared on the streets of Sydney. The birth of dockless bikesharing, its evolution as well as its consequences, and use habits are studied with review of policies and field investigations. It is found that bicycle use in Sydney is less than hoped for, vandalism is high, regulations unfavourable, and thus, the conditions for successful bikesharing are not met.
    Keywords: Bikesharing, Dockless, Stationless, Public bicycle, Sharing Economy
    JEL: R40
    Date: 2018
  30. By: Jolaoso, Enoch; Asirvatham, Jebaraj
    Keywords: Financial Economics, International Development
    Date: 2018–01–17
  31. By: Joerg Bibow
    Abstract: This study investigates the evolution of central bank profits as fiscal revenue (or: seigniorage) before and in the aftermath of the global financial crisis of 2008-9, focusing on a select group of central banks--namely the Bank of England, the United States Federal Reserve System, the Bank of Japan, the Swiss National Bank, the European Central Bank, and the Eurosystem (specifically Deutsche Bundesbank, Banca d'Italia, and Banco de Espana)--and the impact of experimental monetary policies on central bank profits, profit distributions, and financial buffers, and the outlook for these measures going forward as monetary policies are seeing their gradual "normalization." Seigniorage exposes the connections between currency issuance and public finances, and between monetary and fiscal policies. Central banks' financial independence rests on seigniorage, and in normal times seigniorage largely derives from the note issue supplemented by "own" resources. Essentially, the central bank's income-earning assets represent fiscal wealth, a national treasure hoard that supports its central banking functionality. This analysis sheds new light on the interdependencies between monetary and fiscal policies. Just as the size and composition of central bank balance sheets experienced huge changes in the context of experimental monetary policies, this study's findings also indicate significant changes regarding central banks' profits, profit distributions, and financial buffers in the aftermath of the crisis, with considerable cross-country variation.
    Keywords: Central Bank Profits; Seigniorage; Financial Crisis; Unconventional Monetary Policy; Monetary and Fiscal Policy; Central Bank Capital; Helicopter Money; Cryptocurrencies; Bitcoin
    JEL: E41 E52 E58 E62 E65 G01
    Date: 2018–10
  32. By: Min-Sung Kim; Jinseok Kim; Boram Lee
    Abstract: Sharing economy has been growing and playing a significant role in the real world. For instance, guesthouses allow people to share their home and provide unique experiences to some travelers. However, it generates unexpected impacts on the neighborhoods.- residents as well as local shops in these cities are at risk of being forced out as property prices and rents rise due to the uncontrollable flow of tourists. This paper examines the impacts of tourism gentrification (touristification) on housing market, using a case study in Seoul. The result shows that guesthouses, including Airbnb, bring tourists, changes types of retails in the neighborhood, increases property values, and eventually kicks out residents. It has changed the land use, ultimately led displacement of local stores to new retail stores and franchises in the community. Analysis of stakeholders indicates that both residents and mom and pop shops are gentrified by new cafes and restaurants for tourists, but then these new stores also become gentrified and turn into franchise in the end. Moreover, it is found that as the real estate bubble bursts, the guesthouse is considered as profitable and the return on investment in guesthouse is higher than that of apartments and officetel in Seoul. The in-depth interviews with residents also reveal that it accelerates the relocation cycle of tenants due to the capital into the real estate market. This change of real estate investment trend demonstrates the importance of consumption-oriented activities in residential space and suggests the role of government and policy recommendations to ease rising rent in tourist areas.
    Keywords: Guesthouse; Housing Market; Sharing Economy; Touristification
    JEL: R3
    Date: 2018–01–01

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