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on Payment Systems and Financial Technology |
| By: | Almosova, Anna |
| Abstract: | The recent emergence of blockchain-based cryptocurrencies has received a considerable attention. The growing acceptance of cryptocurrencies has led many to speculate that the blockchain technology can surpass a traditional centralized monetary system. However, no monetary model has yet been developed to study the economics of the blockchain. This paper builds a model of the economy with a single generally acepted blockchain-based currency. In the spirit of the search and matching literature I use a matching function to model the operation of the blockchain. The formulation of the money demand is taken from a workhorse of monetary economics - Lagos and Wright (2005). I show that in a blockchain-based monetary system money demand features a precautionary motive which is absent in the standard Lagos-Wright model. Due to this precautionary money demand the monetary equilibrium can be stable for some calibrations. I also used the developed model to study how the equilibrium return on money is dependent on the blockchain parameters such as mining costs and rewards. |
| Keywords: | Blockchain,Miners,Cryptocurrency,Matching function |
| JEL: | E40 E41 E42 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181502&r=pay |
| By: | Amit Sharma (University School of Management Studies, GGS Indraprastha University) |
| Abstract: | Digital buying behavior is now the most used method by Indian consumer for shopping. Indian consumer who was reluctant and skeptical of online purchases until half a decade ago has taken a major leap towards digital buying. India, being second most populous country in the world is definitely a huge market even if ninety percent of us may not buy products online. This ten percent digital consumers are enough to give big business to companies selling their products online and the selling platforms. Since this explosive digital buying behavior is very recent for India as a digital market, there is urgent need to understand the digital consumer behavior of Indian customer. In this context the present study was conducted to see how consumer with different types of personality and demographic differences differ on their frequency of online purchase, types of products purchased, type of websites preferred to purchase online, preferred mode of payment, attraction of online offers, and reasons to prefer online purchase over traditional go market behavior. The study was conducted on a sample of 160 respondents from various regions of India. The results of this research reveals that digital consumer behavior in India is affected by demographic factors like Gender, Age, Marital Status and Personality factors like Agreeableness, Conscientiousness and Open to Change. The paper discuss the implications of these differences with respect to Indian digital market. |
| Keywords: | Frequency of online purchase, Reasons to prefer online purchase, Age, Gender, Marital Status, Agreeableness, Conscientiousness, Open to Change. |
| JEL: | M10 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:8209701&r=pay |
| By: | Noelia Camara; Enestor Dos Santos; Francisco Grippa; Javier Sebastian; Fernando Soto; Cristina Varela |
| Abstract: | This document focuses on identifying factors affecting the implementation of a Central Bank digital currency (CBDC) in Latin American countries. The adoption of a CBDC (non-universal) for the interbank and wholesale payment system would lead to a relatively minor level of disruption in the economy. In this case, the implementation costs is an important issue. |
| Keywords: | Working Paper , Digital Regulation , Central Banks , Digital economy , Financial Markets , Financial Inclusion , Latin America |
| JEL: | O33 E43 E58 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:bbv:wpaper:1813&r=pay |
| By: | Dominique Guégan (Université Paris1 Panthéon-Sorbonne, Centre d'Economie de la Sorbonne, LabEx ReFi and Ca' Foscari University of Venezia); Christophe Hénot (Université Paris1 Panthéon-Sorbonne, PRISM, Labex ReFi) |
| Abstract: | The Fintech industry has facilitated the development of companies using blockchain technology. The use of this technology inside banking system and industry opens the route to several questions regarding the business activity, legal environment and insurance devices. In this paper, considering the creation of small companies interested to develop their business with a public blockchain, we analyse from different aspects why a company (in banking or insurance system, and industry) decides that a blockchain protocal is more legitimate than another one for the business it wants to develop looking at the legal (in case of dispute) points of view. We associate to each blockchain a probative value which permits to assure in case of dispute that a transaction has been really done. We illustrate our proposal using thirteen blockchains providing in that case a ranking between these blockchains for their use in business environment. We associate to this probative value some main characteristics of any blockchain as market capitalization and log returns volatilities that the investors need to take also into account with the new probative value for their managerial strategy |
| Keywords: | Attack; Blockchain; Crypto-currency; probative-value; evidential-value; Hash rate; immutability; Mining; Proof of work; Regulation; volatility |
| JEL: | C9 E42 G18 G32 K23 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:18022&r=pay |
| By: | Asongu, Simplice; le Roux, Sara; Nwachukwu, Jacinta; Pyke, Chris |
| Abstract: | Purpose- This study presents theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000-2012. Design/methodology/approach- The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyse the linkage between mobile phone usage and the variation in three broad governance categories — political, economic and institutional. Findings- Three key findings are established: First, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics. Originality/value- The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage. |
| Keywords: | comparative study, ICT, IT diffusion and adoption |
| JEL: | G20 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89364&r=pay |
| By: | Rex Yuxing Du; Mingyu Joo; Kenneth C. Wilbur |
| Abstract: | Little is known about how different types of advertising affect brand attitudes. We investigate the relationships between three brand attitude variables (perceived quality, perceived value and recent satisfaction) and three types of advertising (national traditional, local traditional and digital). The data represent ten million brand attitude surveys and $264 billion spent on ads by 575 regular advertisers over a five-year period, approximately 37% of all ad spend measured between 2008 and 2012. Inclusion of brand/quarter fixed effects and industry/week fixed effects brings parameter estimates closer to expectations without major reductions in estimation precision. The findings indicate that (i) national traditional ads increase perceived quality, perceived value, and recent satisfaction; (ii) local traditional ads increase perceived quality and perceived value; (iii) digital ads increase perceived value; and (iv) competitor ad effects are generally negative. |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1810.07783&r=pay |
| By: | Daniel Piazolo |
| Abstract: | Data are the new currency of our time. Various digital technologies drive the successful business models of today, but will also determine the real estate industry in the future. The paper examines the relevant digital technologies and various real estate tech startups. The underlying modes of operation can be condensed to four types:1.) Increasing transparency2.) Raising efficiency3.) Enhancing flexibility4.) Enabling new opportunities, new contents, and new insights.Based on these modes of operation it is possible to describe the successful companies, the driving forces behind real estate digitalization and thus our industry in the near future. |
| Keywords: | BIM; Digital Asset Management; Digital Modes of Operation; Digital Transformation; Structural Change |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_106&r=pay |
| By: | ITF |
| Abstract: | This report examines how advances in data science and encoding could improve transport. It investigates three linked and rapidly changing areas: First, it discusses the deployment of blockchain and other distributed ledger-based approaches, that record transactions efficiently and in a verifiable and permanent way. Secondly, the study looks at open algorithms and other alternatives to traditional data-sharing. Finally, it reviews the development of a common data syntax for encoding mobility services. |
| Date: | 2018–05–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:52-en&r=pay |
| By: | Dalton, Patricio (Tilburg University, Center For Economic Research); Pamuk, Haki (Tilburg University, Center For Economic Research); Ramrattan, R.; van Soest, Daan (Tilburg University, Center For Economic Research); Uras, Burak (Tilburg University, Center For Economic Research) |
| Abstract: | What determines the adoption of electronic-payment instruments? Do these instruments impact business outcomes, in particular access to finance? To shed light on these questions, we conducted a Randomized-Controlled-Trial with Kenyan SMEs. Our experiment released barriers to adopt a novel payment instrument. We uncover that the adoption barriers were binding for a large portion of the firms and that firms' financial transparency interacted with the decision to adopt. After sixteen months, treated businesses were more likely to feel safe and had more loans. The impact on loans was especially pronounced for smaller size establishments, which also experienced a reduction in sales-volatility. |
| Keywords: | SME Finance; Transparency; Technology adoption; Lipa Na M-Pesa |
| JEL: | D22 G00 G21 O33 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:82d89846-b515-41c7-b431-592837d9d48d&r=pay |
| By: | Chadha, Jagjit S. |
| Abstract: | We consider the role of money as a means of payment, store of value and medium of exchange. I outline a number of quantitative and qualitative experiences of monetary management. Successful regimes have sprung up in a variety of surprising places, and been sustained with state (centralised) interventions. Although the link between state and money, and its standard of identity and account may be clear, particularly in earlier stages of economic development, the extent to which the state is widely felt to hold responsibility for 'sound money' is less clear in modern democracies, where there are many other public responsibilities implying ongoing trade-offs. |
| Keywords: | money; gold standard; paper money; Samuelson. |
| JEL: | B22 E31 |
| Date: | 2018–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:90379&r=pay |
| By: | Gabriel Rissola (European Commission - JRC); Jens Sorvik |
| Abstract: | This report examines the synergetic place-based relationships of Digital Innovation Hubs (DIH) and Smart Specialisation Strategies (S3) in selected European regions, with DIHs being the policy outcome of a S3 process or an active actor participating in S3 entrepreneurial discovery processes (EDP) and implementing parts of a S3. By supporting the digitisation of the local industry DIHs also enhance the regional innovation ecosystem, either with the provision of horizontal digitalisation support or by leading a S3 priority area. One clear role of DIHs is to make available support easier to find for local SMEs and industry. DIHs work according to different business models and a targeted funding mix plus a matrix of different funding instruments for the digital transformation of SMEs are required for their sustainability. The report compiles 7 relevant examples (1 national and 6 regional). |
| Keywords: | Digital Innovation Hubs, DIH, Smart Specialisation Strategies, S3, RIS3, digital growth, digital transformation, digitisation, industry, SME, regional policy, regional cases |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc113111&r=pay |
| By: | Kommel, Karl Arnold; Sillasoo, Martin; Lublóy, Ágnes |
| Abstract: | Equity research is gaining popularity in crowd-sourced information sharing platforms. This study analyses S&P 100 companies stock recommendations and user-contributed articles published on Seeking Alpha platform over a three-year period; and investigates whether investment banks’ rating consensus or the sentiment of single-ticker articles published by Seeking Alpha contributors can predict future abnormal returns more accurately. We find that both analyst groups underperform the market. Trading strategies based on the sentiment of the opinion articles perform worse than trading strategies designed around the recommendations of security analysts. Analyst recommendations are expected to remain relevant, there is no immediate pressure from crowd-sourced equity research for changing the business model. |
| Keywords: | stock recommendation, investment bank, crowdsourced financial analysis, sentiment, stock returns |
| JEL: | C22 G11 G14 G24 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:cvh:coecwp:2018/03&r=pay |
| By: | Zhao, Jianmei |
| Keywords: | Household and Labor Economics, Agribusiness Economics and Management, Rural/Community Development |
| Date: | 2018–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea18:274178&r=pay |
| By: | Alexander Brauneis (Department of Finance and Accounting, Alpen-Adria University Klagenfurt); Roland Mestel (Institute of Banking and Finance, Karl-Franzens-University Graz); Ryan Riordan (Smith School of Management, Queens University); Erik Theissen (Institute of Banking and Finance, University of Graz; Finance Area, University of Mannheim) |
| Abstract: | We study Bitcoin (BTC) exchanges on three continents, Bitfinex, Bitstamp and GDAX. We use a high frequency dataset that contains both transactions data and snapshots of the BTC to US dollar (BTCUSD) order book. The BTCUSD market is highly liquid in terms of bid-ask spreads and order book depth. While spreads are low, we find large differences between the three exchanges in terms of transaction and posted prices. The price differences fall over our sample period meaning that markets are becoming more integrated. We show that exchanges play an increasingly important role in the transfer of BTC. At the end of 2017, exchanges processed roughly 30% of BTC transfers at the end of our sample period this increases to 90%. |
| Date: | 2018–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:grz:wpsses:2018-06&r=pay |
| By: | Carin van der Cruijsen; Joris Knoben |
| Abstract: | For stakeholders in the payment system seeking to influence the usage of specific payment instruments, it is important to know what drives consumers' choice of payment instrument. However, little is known about how the social environment influences payment behaviour. This study fills this gap by researching the relevance of peer effects for payment behaviour. We used the detailed payment diary data of Dutch consumers. Our findings show that payment behaviour is strongly influenced by the environment that people live in, especially when the environment is characterised by strong social cohesion. Hence, our study offers new insights into the diffusion of payment behaviour. |
| Keywords: | payment diaries; payment behaviour; peer effects; consumer survey |
| JEL: | A14 D12 D14 E42 E58 Z13 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:611&r=pay |
| By: | Homburg, Stefan |
| Abstract: | This paper shows that the eurozone payment system does not effectively protect member states from speculative attacks. Suspicion of a departure from the common currency induces a terminal outflow of central bank money in weaker member states. TARGET2 cannot inhibit this drain but only protects central bank assets. Evidence presented here suggests that a run on Italy is already on the way. The paper also considers departure strategies of strong and weak member states and the distributive effects of an orderly eurozone dissolution. |
| Keywords: | Currency speculation; TARGET2; eurozone; Italexit; Dexit; trilemma |
| JEL: | E52 E58 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:han:dpaper:dp-640&r=pay |
| By: | Szabolcs Majoros; Andr\'as Zempl\'eni |
| Abstract: | In this paper we extend the known methodology for fitting stable distributions to the multivariate case and apply the suggested method to the modelling of daily cryptocurrency-return data. The investigated time period is cut into 10 non-overlapping sections, thus the changes can also be observed. We apply bootstrap tests for checking the models and compare our approach to the more traditional extreme-value and copula models. |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1810.09521&r=pay |
| By: | Gesche, Tobias |
| Abstract: | Using data from a large-scale sales campaign on eBay, I show that successful auction customers punish the seller through unfavorable public feedback when they later learn discover a cheaper fixed-price offer. The probability of receiving such feedback is four times bigger for auctions than for fixed -price sales of the same item from the same seller. Remarkably, this probability is increasing in the auction price, even though auction customers actively shaped this price themselves. In line with an explanation based on ex-post reference price shifts, this price effect is concentrated in a period during which reference prices were particularly salient because customers information about them, but not about idiosyncratic transaction features (e.g. quality), could change. Consistent with the reference price explanation, the difference in unfavorable feedback between auctions and fixed-price sales is also concentrated in this period and drops to a quarter of its initial size afterwards. |
| Keywords: | customer antagonism,pricing,reference prices,online reputation,eBay |
| JEL: | D44 D91 M31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc18:181650&r=pay |
| By: | Alberto Cavallo |
| Abstract: | I study how online competition, with its algorithmic pricing technologies and the transparency of the Internet, can change the pricing behavior of large retailers and affect aggregate inflation dynamics. In particular, I show that online competition has raised both the frequency of price changes and the degree of uniform pricing across locations in the U.S. over the past 10 years. These changes make retail prices more sensitive to aggregate ``nationwide" shocks, increasing the pass-through of both gas prices and nominal exchange rate fluctuations. |
| JEL: | E31 E5 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25138&r=pay |
| By: | Patrick Lecomte |
| Abstract: | As technological innovations applied to the built environment become prevalent, real estate players (developers, owners, users) are confronted with a range of disruptions which are redefining the common understanding of what a commercial property stands for. The paper studies the role and positioning of commercial real estate in smart cities, and assesses the need for new tools to analyse this growing segment of the property market. |
| Keywords: | proptech; Real Estate; Smart Cities; Smart real estate |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_46&r=pay |
| By: | Danish Ahmad Khan (Bahria University); Tehreen Arif (Bahria University); Mariam Danish (MD Solutions) |
| Abstract: | This particular research is being conducted to identify and review the effect of social media marketing on brand equity with special reference to academic institutions. Social media marketing plays a significant role nowadays it has a huge impact on online businesses in the context of academic institutions. The nature of the research is descriptive which requires more and more relevant data through the respondents. The data collection approach is to develop a questionnaire and floated among the respondents and the data has been analyzed through the quantitative research. The area of the study is pure academic institutions customer?s i-e students, employees, and teachers.Social media is a predominant marketing tool greatly used by online businesses in order to reach out to the maximum number of people. Whereas building brand equity is one of the central point of research for several marketers for a very long period. Marketers have used various techniques in order to increase their brand equity but the most significant tool nowadays which affects the brand equity of a particular institution is the social media marketing. The aim of this study is to determine the effect of social media marketing on brand equity with special reference to academic institutions. The study further illustrates the introduction and background of the research followed by critical analysis of the literature. The nature of this study is descriptive; survey has been done through online questionnaire and data has been collected from 200 respondents. The data analysis method for this particular research is quantitative data analysis technique and the data has been analyzed with the help of SPSS software. Evident by findings, there is a significantly positive relationship between social media marketing and brand equity with special reference to academic institutions. The study adds greater value to the academic institutions in case of increasing the brand equity by establishing and employing the main characteristics of social media marketing. |
| Keywords: | Social Media marketing, Academic institutions, Brand equity; Brand association, Brand loyalty, Perceived quality, and Brand awareness, Pakistan. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:6509060&r=pay |
| By: | Engels, Barbara |
| Abstract: | Influencer-Marketing, die digitale Vermarktung über Meinungsmacher mit einer starken Community, gewinnt in der Werbelandschaft an Bedeutung. Ein beispielhafter Vergleich der Schaltungskosten zeigt: Die klassische TV-Werbung erreicht zwar für weniger Geld mehr Menschen – aber oft nicht die richtigen. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:n572018&r=pay |
| By: | Bob Thompson |
| Abstract: | An accelleration in the use of technology to automate core real estate services is likely to mean that the surveyor of the future will need a dramatically different skillset than that being taught today.Building on work undertaken for the RICS this paper examines the curricula of a sample of real estate courses around the world in the light of the findings published in ""The Impact of Emerging Technologies on the Surveying Profession"" published by the RICS in July 2017.The subjects at greatest risk of functional redundancy are highlighted and alternatives proposed, rounding up with an assessment of the likely impact upon courses and student numbers in the future. |
| Keywords: | Teaching; Technology |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_162&r=pay |
| By: | Volckart, Oliver |
| Abstract: | Research has rejected Ranke’s hypothesis that the Reformation emasculated the Holy Roman Empire and thwarted the emergence of a German nation state for centuries. However, current explanations of the Empire’s cohesion that emphasise the effects of outside pressure or political rituals are not entirely satisfactory. This article contributes to a fuller explanation by examining a factor that so far has been overlooked: monetary policies. Monetary conditions within the Empire encouraged its members to cooperate with each other and the emperor. Moreover, cross-cutting cleavages – i.e. the fact that both Catholics and Protestants were split among themselves in monetary-policy questions – allowed actors on different sides of the confessional divide to find common ground. The paper analyses the extent to which cleavages affected the negotiations about the creation of a common currency between the 1520s and the 1550s, and whether monetary policies helped bridging the religious divide, thus increasing the Empire’s political cohesion. |
| Keywords: | Holy Roman Empire; reformation; political cohesion; monetary policies. |
| JEL: | H11 H77 N13 N43 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:wpaper:90503&r=pay |
| By: | Pincheira, Pablo; Hardy, Nicolas |
| Abstract: | In this paper we show that survey-based-expectations about the future evolution of the Chilean exchange rate have the ability to predict the returns of the six primary non-ferrous metals: aluminum, copper, lead, nickel, tin and zinc. Predictability is also found for returns of the London Metal Exchange Index. Previous studies have shown that the Chilean exchange rate has the ability to predict copper returns, a world commodity index and base metal prices. Nevertheless, our results indicate that expectations about the Chilean peso have stronger predictive ability relative to the Chilean currency. This is shown both in-sample and out-of-sample. By focusing on expectations of a commodity currency, and not on the currency itself, our paper provides indirect but new and strong evidence of the ability that commodity currencies have to forecast commodity prices. Our results are also consistent with the present-value-model for exchange rate determination. |
| Keywords: | Forecasting; commodities; univariate time-series models; out-of-sample comparison; exchange rates; copper; base metals |
| JEL: | C1 C10 C2 C22 C3 C32 C49 C52 C53 C58 E0 E31 E32 E37 E4 E42 E44 E47 F31 F32 F37 F4 F44 F47 M21 Q3 Q31 Q37 |
| Date: | 2018–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89423&r=pay |
| By: | Mojmir Hampl (Czech National Bank, Na prikope 28, 115 03 Prague 1, Czech Republic); Tomas Havranek (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic; Czech National Bank, Na prikope 28, 115 03 Prague 1, Czech Republic) |
| Abstract: | We examine the use of central bank capital as an unconventional monetary policy tool. In this setting, a central bank employs digital currency to transfer digital cash to each household, thus supporting consumption directly when needed. The asset side of the central bank’s balance sheet remains unchanged, and the creation of new digital cash is offset by a decrease in central bank capital. The central bank thus incurs an immediate loss but does not take on any additional risks for its future income statements. We address several objections to this policy, paying particular attention to the claim that weakening the financial strength of the central bank endangers long-term price stability. Through a meta-analysis of 176 estimates reported previously in the literature, we find that central bank financial strength has not historically correlated with inflation performance. |
| Keywords: | Central bank capital, inflation, seigniorage, monetary policy, helicopter money, central bank digital currency |
| JEL: | E42 E52 E58 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2018_25&r=pay |
| By: | Simplice Asongu (Yaoundé/Cameroun); Nicholas Odhiambo (Pretoria, South Africa) |
| Abstract: | This study assesses linkages between social media and governance dynamics in 49 African countries for the year 2012. The empirical evidence is based on ordinary least squares and quantile regressions. Ten bundled and unbundled governance dynamics are used, notably: (i) political governance (entailing “voice & accountability” and political stability/no violence); (ii) economic governance (involving regulation quality and government effectiveness); (iii) institutional governance (comprising the rule of law and corruption-control) and (iv) general governance (entailing political, economic and institutional governance). Social media is measured with Facebook penetration. The findings show that Facebook penetration is positively associated with governance dynamics and these positive nexuses differ in terms of significance and magnitude of significance throughout the conditional distribution of the governance dynamics. |
| Keywords: | Governance; Social media; Africa |
| JEL: | G20 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:18/039&r=pay |
| By: | Kim, Jeong-yoo; Park, Jihoon |
| Abstract: | In this paper, the authors provide a rationale for why firms issue gift cards or vouchers. Mainly, issuing gift cards can be considered as a collusion-facilitating practice. A firm that issues gift cards can raise its price for several reasons. First, the discounted price by the face value of the gift card makes demands less elastic so that the resulting price will be higher. Second, it has the lock-in effect which makes price competition even less severe. Third, once a firm has sold its gift cards, selling a product to card holders does not increase its revenue, but only increases its cost. So the firm has an incentive to raise the price. Interestingly, the authors argue that the lock-in effect is not essential to the collusion-facilitating effect of gift cards in the sense that collusive prices can be sustained even when the two firms mutually honor their own gift cards, so that no lock-in effect exists. This is mainly because firms can still raise prices for the total proportions of consumers who face less elastic demands due to discounted prices. Despite the apparent additional cost of issuing gift cards, firms can benefit from issuing them if its collusive effect is higher than the increase in the cost. |
| Keywords: | Gift card,gift voucher,collusion-facilitating practice,lock-in effect,elasticity effect,cost-saving effect |
| JEL: | D43 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201876&r=pay |
| By: | Grewenig, Elisabeth (Ifo Institute for Economic Research); Lergetporer, Philipp (Ifo Institute for Economic Research); Simon, Lisa (CESifo); Werner, Katharina (Ifo Institute for Economic Research); Woessmann, Ludger (Ifo Institute for Economic Research) |
| Abstract: | A general concern with the representativeness of online surveys is that they exclude the "offline" population that does not use the internet. We run a large-scale opinion survey with (1) onliners in web mode, (2) offliners in face-to-face mode, and (3) onliners in face-to-face mode. We find marked response differences between onliners and offliners in the mixed-mode setting (1 vs. 2). Response differences between onliners and offliners in the same face-to-face mode (2 vs. 3) disappear when controlling for background characteristics, indicating mode effects rather than unobserved population differences. Differences in background characteristics of onliners in the two modes (1 vs. 3) indicate that mode effects partly reflect sampling differences. In our setting, re-weighting online-survey observations appears a pragmatic solution when aiming at representativeness for the entire population. |
| Keywords: | online survey, representativeness, mode effects, offliner, public opinion |
| JEL: | C83 D91 I20 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11799&r=pay |
| By: | Ohik Kwon (Economic Research Institute, The Bank of Korea); Jaevin Park (Department of Economics, The University of Mississippi) |
| Abstract: | This paper studies the efficiency of electronic money system by focusing on the decentralized setting of issuance. In the model competitive money issuers can create small denominated money (or e-money) backed by large denominated government bonds. Under the decentralized environment the issuers can also produce counterfeit collateral at a proportional cost. This moral hazard incentive requires the more government bonds for the issuers to provide the same amount of money. In general equilibrium the individual money issuers do not internalize the aggregate effect of money supply. Thus the equilibrium allocation is constrained inefficient with the moral hazard incentives. We suggest a pigouvian tax on money supply to correct the externality in aggregate money supply. |
| Keywords: | Limited Commitment, Moral Hazard, Externality, Open-market Operations |
| JEL: | E4 E5 |
| Date: | 2018–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:bok:wpaper:1817&r=pay |
| By: | Tréhu, Julia |
| JEL: | N0 |
| Date: | 2017–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86996&r=pay |