nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2018‒12‒24
33 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. 2017 Methods-of-Payment Survey Report By Christopher Henry; Kim Huynh; Angelika Welte
  2. The Development of Digital Technology for IT, IoT, Big Data, and AI in Japan's Fourth Industrial Revolution By KIMOTO Hiroshi; SAWATANI Yuriko; SAITO Naho; IWAMOTO Koichi; TANOUE Yuta; INOUE Yusuka
  3. How Enhancing ICT has affected Inequality in Africa for Sustainable Development: An Empirical Investigation By Simplice A. Asongu; Nicholas M. Odhiambo
  4. The Initial Effects of EMV Migration on Chargebacks in the United States By Hayashi, Fumiko; Markiewicz, Zach; Minhas, Sabrina
  5. The Impact of Blockchain on the Music Industry By Sitonio, Camila; Nucciarelli, Alberto
  6. Mobile Money and Money Demand in Kenya By Elizabeth Kasekende; Eftychia Nikolaidou
  7. Consumer Credit, Digitalisation and Behavioural Economics: Are new protection rules needed? By Bouyon, Sylvain; Ayoub, Janna
  8. Should the Central Bank Issue E-money? By Charles M. Kahn; Francisco Rivadeneyra; Tsz-Nga Wong
  9. Digital Platforms in Developing Countries: "A Case-Study of Jumia Egypt" By Badran, Mona Farid
  10. Can Mobile-Linked Bank Accounts Bolster Savings? Evidence from a Randomized Controlled Trial in Sri Lanka By Suresh De Mel; Craig McIntosh; Ketki Sheth; Christopher Woodruff
  11. Speculative Eurozone Attacks and Departure Strategies By Stefan Homburg
  12. Competition policy questions in mobile network sharing By Pápai, Zoltán; Csorba, Gergely; Nagy, Péter; McLean, Aliz
  13. 2017 Methods-of-Payment Survey: Sample Calibration and Variance Estimation By Heng Chen; Marie-Hélène Felt; Christopher Henry
  14. Mobile investment and traffic per capita tend to increase with license duration By Jeanjean, Francois; Lebourges, Marc; Liang, Julienne
  15. Cyber-Bullying: Assessment of its Awareness and Threats to Social Media Development By Obidi, Ekpereamaka Miracle; Ahaiwe, Chizaram Priscilla
  16. Enabling Sustainable Savings and Investment Channels in Europe: Opportunities and Challenges By Amariei, Cosmina
  17. A retrospective on the subprime crisis and its aftermath ten years after Lehman's collapse By Cukierman, Alex
  18. The Dominium Mundi Game and the Case for Artificial Intelligence in Economics and the Law By Rodríguez Arosemena, Nicolás
  19. Do Children Benefit from Internet Access? Experimental Evidence from Peru By Ofer Malamud; Santiago Cueto; Julian Cristia; Diether W. Beuermann
  20. The Economics of Regulating Ride-Hailing and Dockless Bike Share By Rex Deighton-Smith
  21. Money and Meaning: How working-age social security benefit recipients understand and use their money By Kate Summers
  22. Perceived Fairness in the Taxation of a Digital Business Model By Greil, Stefan; Schwarz, Christian; Stein, Stefan
  23. Demanda de dinero en América Latina, 1996-2016: una aplicación de cointegración en datos de panel By Alfredo Villca; Alejandro Torres; Carlos Esteban Posada; Hermilson Velásquez
  24. My Peers are Watching me - Audience and Peer Effects in a Pay-What-You-Want Context By Elisa Hofmann; Michael E. Fiagbenu; Asri Özgümüs; Amir M. Tahamtan; Tobias Regner
  25. Germs, Social Networks and Growth By Fogli, Alessandra; Veldkamp, Laura
  26. How 'Big Data' affects competition law analysis in Online Platforms and Agriculture: does one size fit all? By Atik, Can
  27. How might we use Design Thinking for Digital Business Design and for creating Digital Business Value? By Baum, Peter
  28. Path dependencies versus efficiencies in regulation: Evidence from "old" and "new" broadband markets in the EU By Briglauer, Wolfgang; Camarda, Enrico Maria; Vogelsang, Ingo
  29. The Price of BitCoin: GARCH Evidence from High Frequency Data By Pavel Ciaian; d'Artis Kancs; Miroslava Rajcaniova
  30. The power of social media as a labour campaigning tool: lessons from OUR Walmart and the Fight for 15 By Vincent Pasquier; Alex J Wood
  31. Industry Comparison Using the Data from the "Questionnaire Survey Regarding Data Utilization" (Japanese) By TATSUMOTO Hirofumi; HIRAI Yuri; WATANABE Toshiya
  32. Measuring Venezuelan Emigration with Twitter By Ricardo Hausmann; Julian Hinz; Muhammed A. Yildirim
  33. Voluntary Provision of Public Goods and Cryptocurrency By OGURO Kazumasa; ISHIDA Ryo; YASUOKA Masaya

  1. By: Christopher Henry; Kim Huynh; Angelika Welte
    Abstract: As the sole issuer of bank notes, the Bank of Canada conducts Methods-of-Payment (MOP) surveys to obtain a detailed and representative snapshot of Canadian payment choices, with a focus on cash usage. The 2017 MOP Survey is the third iteration. This paper finds that the overall cash volume and value shares are 33 per cent and 15 per cent, respectively. These results highlight the ongoing decrease of cash usage in terms of volume and value compared with 2009 (54 per cent and 23 per cent, respectively) and 2013 (44 per cent and 23 per cent, respectively). Consumers still rate cash as an easy-to-use, low-cost, secure and widely accepted payment method, and it is commonly used among respondents who are aged 55 and above, have an income of less than $45,000, have only a high school education, or have a low rate of financial literacy. The paper also provides comprehensive details on Canadians’ adoption and use of payment innovations such as contactless credit and debit cards, as well as mobile and online payments.
    Keywords: Bank notes, Digital Currencies, Financial services
    JEL: D83 E41
    Date: 2018
  2. By: KIMOTO Hiroshi; SAWATANI Yuriko; SAITO Naho; IWAMOTO Koichi; TANOUE Yuta; INOUE Yusuka
    Abstract: This paper describes the first scientific and basic survey data which can explain the present situation of the development of digital technology for information technology (IT), Internet of Things (IoT), big data, and artificial intelligence (AI) in Japan's fourth industrial revolution. And this paper describes the result of the analysis of the survey study. Big companies are trying to develop new business using digital technology but SME's is still fall behind. The difference of each industrial sector is more clear. If this survey study shall be done every two years, the dynamic survey will be possible, which is the first purpose.
    Date: 2018–12
  3. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study examines if enhancing ICT reduces inequality in 48 countries in Africa for the period 2004-2014. Three inequality indictors are used, namely, the: Gini coefficient, Atkinson index and Palma ratio. The adopted ICT indicators include: mobile phone penetration, internet penetration and fixed broadband subscriptions. The empirical evidence is based on the Generalised Method of Moments. Enhancing internet penetration and fixed broadband subscriptions have a net effect on reducing the Gini coefficient and the Atkinson index, whereas increasing mobile phone penetration and internet penetration reduces the Palma ratio. Policy implications are discussed in the light of challenges to Sustainable Development Goals.
    Keywords: ICT; Inclusive development; Africa; Sustainable development
    JEL: G20 I10 I32 O40 O55
    Date: 2018–09
  4. By: Hayashi, Fumiko (Federal Reserve Bank of Kansas City); Markiewicz, Zach (Federal Reserve Bank of Kansas City); Minhas, Sabrina (Federal Reserve Bank of Kansas City)
    Abstract: To reduce counterfeit fraud in the card-present environment, the United States started migrating to EMV chip technology in the mid-2010s. Since October 2015, merchants have been liable for counterfeit fraud committed using EMV cards if the merchants had not adopted EMV chip-readable terminals. In particular, merchants are held liable through chargebacks. This study examines the initial effects of the EMV liability shift on fraud chargeback and merchant loss rates using data from merchant processors and PIN debit networks. Combined with gross fraud rates—overall fraud rates regardless of who incurs fraud losses—estimated in other studies, the results of our study suggest that merchants have faced a significantly higher share of fraud losses since the shift; however, this spike will decline if merchants continue to adopt EMV. Merchant fraud loss rates for signature-based transactions in the card-present channel increased sixfold, but the rates significantly vary between magnetic stripe and chip-to-chip transactions. While merchant fraud loss rates for magnetic stripe transactions are over 9 basis points in value for all merchants combined and vary across merchant categories, the rates for chip-to-chip transactions are very low, around 0.02 basis points, across all merchant categories. Because the gross fraud rates for magnetic-stripe transactions did not increase after the liability shift, our results suggest that the higher merchant fraud loss rates for magnetic-stripe transactions are mainly due to the liability shift. Compared with signature-based transactions, fraud chargeback rates for PIN debit transactions in the card-present channel are much lower. Our results suggest that both EMV and PIN are effective in reducing merchant fraud loss rates. However, we need detailed gross fraud rates to examine how effective EMV and PIN are in reducing fraud more generally in the card-present channel. Our results for card-not-present fraud chargeback and merchant loss rates are mixed. Both rates increased for some merchant categories, but the rates for all merchants combined actually decreased in our data. This decline is likely due to the underrepresentation of signature-based CNP transactions in our data. The gross fraud rates for card-not-present transactions increased over the same period, and merchants are generally liable for card-not-present fraud.
    Keywords: Chargebacks; Fraud; EMV Liability Shift; Authentication methods
    JEL: E42 L81
    Date: 2018–12–03
  5. By: Sitonio, Camila; Nucciarelli, Alberto
    Abstract: This paper explores the impact of blockchain on the music industry with a focus on the implications technology can have for artists. By investigating the industry's supply chain, we argue that the on-demand streaming platforms (e.g. Spotify and Apple Music) have allowed consumers to easily access music products but have introduced a level of intermediation between artists and customers leading to inefficiency of the royalty payments systems. The goal of this research is to identify blockchain applications that would enable the disintermediation of the industry, allowing artists to create and capture more value from their own products. This paper discusses some applications and concepts related to blockchain, including smart contracts, record keeping, revenue management, and metadata analysis. By presenting some examples, we assess the current state of the technology's development in the music industry, how companies are introducing this new model into the market, and some limitations these models may have.
    Date: 2018
  6. By: Elizabeth Kasekende (Bank of Uganda); Eftychia Nikolaidou (School of Economics, University of Cape Town)
    Abstract: Over the years, several countries have experienced a variety of financial innovations that can have implications for monetary policy. Kenya has been at the forefront of a unique type of financial innovation, mobile money (M-PESA), introduced in 2007. This paper re-estimates the Kenyan money demand including the country specific innovation, mobile money, using the ARDL approach to cointegration over the period 2000 Q1 to 2014 Q2. The results suggest that there is a positive relationship between mobile money and money demand and that the Kenyan demand for money is stable when mobile money is taken into consideration. These results are robust even with the use of alternative measures of mobile money. This finding has important implications for the effectiveness of monetary policy in Kenya and possibly in other countries that have seen developments in mobile money in recent years.
    Date: 2018
  7. By: Bouyon, Sylvain; Ayoub, Janna
    Abstract: In 2008, the Consumer Credit Directive (CCD) was significantly changed by adopting a targeted harmonisation approach that aimed at standardising information disclosure duties and imposing similar rights all around the EU. Ten years later, this new version of the CCD has increased consumer protection in some EU countries. At the same time, however, it has had limited impact on the emergence of a single market for consumer credit, as the volume of cross-border sales remains marginal. In this context, the European Commission recently launched an evaluation of the CCD to assess its interplay with other rules and whether its current provisions are still fit for purpose. Over the last decade, consumer credit markets have been transformed markedly. On the one hand, the fast digitalisation of the sector has contributed to new services, new processes and new providers. On the other hand, expanding knowledge of the behavioural biases of consumers has been slowly challenging the status quo of how authorities should design consumer protection rules. Both phenomena present opportunities that should be exploited by a possible new CCD, as well as risks that must be addressed, as summarised in the following recommendations: - Overall, a possible revision of the CCD should ensure that the new rules are anchored in the Digital Single Market Strategy. - The new CCD should contribute to unleashing the potential of digital tools in order to overcome barriers to cross-border sales of consumer loans. - The revision should place some emphasis on digital interoperability, data privacy and the extension of the scope of the CDD to new fintech business models. - In order to help mitigate the negative effects triggered by specific behavioural biases, personalised rather than standardised information disclosure should be encouraged. - Given that the digital world is likely to accelerate the average speed of consumer decisions, the right of withdrawal should be maintained. The right of early repayment should be clearly communicated, as the decision to reimburse earlier often works against some key behavioural biases.
    Date: 2018–09
  8. By: Charles M. Kahn; Francisco Rivadeneyra; Tsz-Nga Wong
    Abstract: Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves. The tradeoffs depend on i) the technological setup of the e-money system (as a token or an account; centralized or decentralized); ii) the potential improvement in the implementation and transmission of monetary policy; iii) the risks to safety and privacy from cyber attacks; and iv) the uncertain impact on banks’ efficiency and financial stability. The most compelling argument for central banks to issue e-money is to address competition problems in the banking sector.
    Keywords: Bank notes, Digital Currencies, Financial services, Payment clearing and settlement systems
    JEL: E42 E51 E58
    Date: 2018
  9. By: Badran, Mona Farid
    Abstract: Digital platforms in developing countries are gaining momentum due to the increase in the apps economy that is taking place in these countries. This paper analyzes digital platforms in developing countries using a reference framework that identifies the following: definition, business models, platform enablers, and platform dynamics. The study applies this framework to Jumia Egypt and concludes with policy recommendations to promote digital platforms in developing countries.
    Date: 2018
  10. By: Suresh De Mel; Craig McIntosh; Ketki Sheth; Christopher Woodruff
    Abstract: In developing economies, mobile-linked services have the potential to significantly reduce transaction costs and provide a truly new conduit that could be used to facilitate the flow of savings into banks. We test this premise by introducing a product that permits Sri Lankan households to deposit mobile airtime balances into a formal bank using a new mobile money interface. Using high frequency panel survey data and randomizing access and prices at the individual level, we find that there are moderate percentage increases in savings deposits with the partner institution and formal banks more generally, but no change in overall savings deposits. When the transaction costs are completely removed, only 26 percent of those offered the service use it, and 7 percent use it frequently. Overall, our results imply that transaction costs may not be a significant barrier to increasing deposits, limiting the potential gains of mobile-linked savings products for financial inclusion.
    JEL: G21 O12 O16
    Date: 2018–12
  11. By: Stefan Homburg
    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
  12. By: Pápai, Zoltán; Csorba, Gergely; Nagy, Péter; McLean, Aliz
    Abstract: Network sharing agreements have become increasingly widespread in mobile telecommunications markets. They carry undeniable advantages to operators and consumers alike, but also the potential for consumer harm. Not all NSAs are created equal: the assessment of the balance of harm and benefits to customers due to an NSA is a complex endeavour. In this paper, we present a framework for the competitive assessment of NSAs, detailing the possible concerns that may arise, the main factors that influence their seriousness, ways to mitigate the concerns and the principles of assessing efficiency benefits.
    Keywords: mobile markets,network sharing,competition,competition assessment
    Date: 2018
  13. By: Heng Chen; Marie-Hélène Felt; Christopher Henry
    Abstract: This technical report describes sampling, weighting and variance estimation for the Bank of Canada’s 2017 Methods-of-Payment Survey. Under quota sampling, a raking ratio method is implemented to generate weights with both post-stratification and nonparametric nonresponse weight adjustments. In the end, we estimate variances of weighted means and proportions using bootstrap replicate survey weights. Compared with probability sampling, we find that (i) strong assumptions are required to reduce bias when probabilities of selection are unknown, and (ii) multiple weight adjustments for bias reduction inflate variance. Therefore, it is important to focus more on bias than on variance in the context of nonprobability sampling.
    Keywords: Econometric and statistical methods
    JEL: C81 C83
    Date: 2018
  14. By: Jeanjean, Francois; Lebourges, Marc; Liang, Julienne
    Abstract: Using source WCIS (World Cellular Information Service) for the tangible investments of mobile operators and mobile spectrum licenses, we are able to build a database matching the level of investment per capita with average license duration for 14 countries (representing more than 75% of the number of mobile subscribers of the EEA area) during 15 years. The statistical analysis of the data base proves a strong positive correlation between license average duration and tangible investment per capita. More precisely, we observe an increase of 5.36 e in average investment per capita per year for each additional year of license duration. This feature also holds at operator level. Using Data traffic from Telecom Market Matrix at country level, we also observe that each additional year of license duration corresponds to about 10% additional yearly growth of data traffic.
    Date: 2018
  15. By: Obidi, Ekpereamaka Miracle; Ahaiwe, Chizaram Priscilla
    Abstract: The wake of new media has turned the world into a global village. The internet in recent times, has opened doors for users to connect with people across other parts of the globe. Few can deny the huge technological advancement that are constantly taking place in the modern world. However, this advancement have brought a dramatic shift from what it means to ‘chat’ and ‘socialise’ with other people to a whole gamut of development spinning off from cyber related contingency. This study is aimed at assessing cyber-bullying in the context of undergraduate students in Nigeria, their awareness of cyber-bullying and its threat to social media development. A further aim is to establish whether the respondents have been exposed to bullying on any of the social media platforms. Drawing 396 respondents from a population of 38,000 running across four faculties randomly selected from the fourteen faculties in Nnamdi Azikiwe, University, Awka, the study found out that a majority of the respondents own internet-enabled devices, have access to social media sites through their devices and have been exposed to cyber-bullying on these sites at one point in time. The Computer Mediated Communication theory was the basis from which this study drew its framework.
    Keywords: Cyber-Bullying; Threats; Social Media Development; Internet-Enabled Devices
    JEL: Y1 Y4 Z0
    Date: 2018–11–30
  16. By: Amariei, Cosmina
    Abstract: Notwithstanding the significant differences between member states, the overexposure to bank deposits as well as the equity underweight in the portfolios of European households represent structural issues in Europe. Both market and regulatory developments should head in the direction of increasing access to suitable retail savings/investment products with comparable cost structures and stable returns in the long run. The onus of financial education should not only be on retail investors, but also on advisers and distributors, i.e. strictly monitored, properly trained professionals, regardless of captive or open distribution models. Multiple stakeholders need to be on board in working towards building and implementing the business-financial-societal case for sustainability. The use of financial regulation as a tool to provide incentives or disincentives for retail/institutional investors should be exercised with great caution and be complemented by other appropriate sectoral policies. This is essential in order to avoid a build-up in asset bubbles and further misallocation of resources. Moving sustainability from a niche segment will require a larger pool of sustainable assets and restoring confidence in the capacity of capital markets to generate long-term value in the real economy.
    Date: 2018–07
  17. By: Cukierman, Alex
    Abstract: This paper reviews the interactions between policymaking, the financial system and the U.S. economy before, during and after the subprime crisis with particular attention to current controversies about the policy decisions that led to Lehman's downfall and their lessons for the future. The first part of the paper documents and analyzes the interactions between policy, financial markets and the economy during the acute and subsequent moderate phases of the crisis as well as during the later gradual exit from the zero lower bound and the extremely slow reduction in high powered money and bank reserves. The remaining parts develop alternative aspects of the thesis that mutual uncertainties inflicted by financial institutions on policymakers and by the latter on financial markets were at the root of the non-negligible surprises that the crisis inflicted on everybody. In particular, it discusses the political economy of bailout operations, reviews and evaluates recent controversies about the reasons for not rescuing Lehman Brothers and present informally the structure and policy lessons from a general equilibrium model of the financial sector which highlights the consequences of policy actions that have raised (Knightian) bailout uncertainty. The last section takes a brief look ahead and discusses some longer term consequences of the crisis.
    Keywords: bailouts; banks' reserves; credit; exit; financial crisis; monetary policy; uncertainty
    JEL: E51 E52 E58 E65 G1
    Date: 2018–12
  18. By: Rodríguez Arosemena, Nicolás
    Abstract: This paper presents two conjectures that are the product of the reconciliation between modern economics and the long-standing jurisprudential tradition originated in Ancient Rome, whose influence is still pervasive in most of the world's legal systems. We show how these conjectures together with the theory that supports them can provide us with a powerful normative mean to solve the world's most challenging problems such as financial crises, poverty, wars, man-made environmental catastrophes and preventable deaths. The core of our theoretical framework is represented by a class of imperfect information game built completely on primitives (self-interest, human fallibility and human sociability) that we have called the Dominium Mundi Game (DMG) for reasons that will become obvious. Given the intrinsic difficulties that arise in solving this type of models, we advocate for the use of artificial intelligence as a potentially feasible method to determine the implications of the definitions and assumptions derived from the DMG's framework.
    Keywords: Game Theory; Artificial Intelligence; Dynamic Programming Squared; Imperfect Information Games; Law and Economics
    JEL: C7 C73 D6 K0
    Date: 2018–12–15
  19. By: Ofer Malamud; Santiago Cueto; Julian Cristia; Diether W. Beuermann
    Abstract: This paper provides experimental evidence for the impact of home internet access on a broad range of child outcomes in Peru. We compare children who were randomly chosen to receive laptops with high-speed internet access to (i) those who did not receive laptops and (ii) those who only received laptops without internet. We find that providing free internet access led to improved computer and internet proficiency relative to those without laptops and improved internet proficiency compared to those with laptops only. However, there were no significant effects of internet access on math and reading achievement, cognitive skills, self-esteem, teacher perceptions, or school grades when compared to either group. We explore reasons for the absence of impacts on these key outcomes with survey questions, time-diaries, and computer logs.
    JEL: C93 I21 I25
    Date: 2018–11
  20. By: Rex Deighton-Smith
    Abstract: This paper reviews the economic case for regulating ride-hailing and dockless bikeshare. Ride-hailing has disrupted heavily regulated taxi markets and is calling much of the rationale for taxi regulation into question. It argues for light-handed regulation to enable fair, nondistorting competition across the sector. A similar approach to bikeshare is needed, though the context differs greatly. These services are creating new mobility options, while their business models are evolving rapidly. Regulators should adopt a cautious approach which minimises the risk of undermining their potential.
    Date: 2018–11–26
  21. By: Kate Summers
    Keywords: Universal Credit, benefits, working-age, unemployment, stigma, social security
    Date: 2018–12
  22. By: Greil, Stefan (University of Hamburg); Schwarz, Christian (Department of Economics of the Duesseldorf University of Applied Sciences); Stein, Stefan (Quantum Steuerberatungsgesellschaft mbH)
    Abstract: The “fair” taxation of digital business models is challenging. One of the key aspects – both policy makers and the public opinion consider as most pressuring – is the determination of intragroup transfer prices for intangibles used in digital business models. In this paper, we address the issue of a “perceived fair” taxation of the digital economy in the light of the arm’s length principle based on a survey with transfer pricing experts. The aim of the survey is not to estimate arm’s length profit allocations but rather to elicit fairness considerations in different transfer pricing related scenarios. In a digital economy framework where arm’s length profits are distributed extremely inequitably, subjects perceive this distribution of profits as most unfair compared to more balanced scenarios. Consequently, subjects propose a “fair” distribution of profits that substantially differs from the exogenously given arm’s length allocation. In scenarios with a more balanced arm’s length allocation of profits, we find that the perceived fairness for the expert groups increases while a control group of business students is almost not influenced by the arm’s length allocation of profits.
    Abstract: Die „faire“ Besteuerung digitaler Geschäftsmodelle ist herausfordernd. Einer der Schlüsselaspekte ist dabei die Ermittlung konzerninterner fremdvergleichskonformer Verrechnungspreise für immaterielle Vermögenswerte, die verstärkt in digitalen Geschäftsmodellen genutzt werden. Dieser Beitrag beschäftigt sich mit der „wahrgenommenen“ Fairness bei der Besteuerung digitaler Geschäftsmodelle vor dem Hintergrund des Fremdvergleichsgrundsatz. Grundlage hierfür ist eine Umfrage unter Verrechnungspreis-Experten (Finanzbeamte und Steuerberater). Wir finden, dass wenn der Fremdvergleichsgrundsatz zu einer sehr ungleichen Verteilung des Steuersubstrats führt, die Teilnehmer diese Gewinnverteilung im Vergleich zu ausgewogeneren Szenarien als unfair erachten. Dementsprechend zeigen unsere Ergebnisse, dass zwar der Fremdvergleichsgrundsatz als Referenzpunkt für Fairness Überlegungen dient. In Bezug auf die individuell vorgeschlagene faire Gewinnverteilung können aber erhebliche Unterschiede zur fremdvergleichskonformen Gewinnverteilung bestehen.
    Keywords: arm's length principle, corporate income tax, fairness, profit-shifting, Fremdvergleichsgrundsatz, Gewinnverlagerung, Unternehmensbesteuerung, digitale Geschäftsmodelle
    JEL: H26 H25 K34 D90 F23
  23. By: Alfredo Villca; Alejandro Torres; Carlos Esteban Posada; Hermilson Velásquez
    JEL: E41 C23
    Date: 2018–04–30
  24. By: Elisa Hofmann (Friedrich Schiller University Jena); Michael E. Fiagbenu (Friedrich Schiller University Jena); Asri Özgümüs (Georg-August University Göttingen); Amir M. Tahamtan (Sharif University of Technology, Teheran); Tobias Regner (Friedrich Schiller University Jena)
    Abstract: We experimentally investigate two relevant drivers of payments in voluntary settings: the ef- fects of audience and peers. Our 2×2 between-subjects design varies the interpersonal closeness of buyers (Strangers vs. Peers) and the observability of their payments to other buyers (Anonymous vs. Public). This allows us to enrich the research on both drivers and identify whether payment observability (audience effect), the presence of known others (peer effect), or the combination of both affects voluntary payments. Payments are, on average, higher if they are made public and if buyers feel close to each other. While the effect of audience and peers on payments is additive in total, we do not find an interaction effect, if payments are observed by peers.
    Keywords: social preferences, experiments, social image concerns, Pay-What-You-Want, interpersonal closeness
    JEL: C91 D03 L11
    Date: 2018–12–21
  25. By: Fogli, Alessandra; Veldkamp, Laura
    Abstract: Does the pattern of social connections between individuals matter for macroeconomic outcomes? If so, where do these differences come from and how large are their effects? Using network analysis tools, we explore how different social network structures affect technology diffusion and thereby a country's rate of growth. The correlation between high-diffusion networks and income is strongly positive. But when we use a model to isolate the effect of a change in social networks, the effect can be positive, negative, or zero. The reason is that networks diffuse ideas and disease. Low-diffusion networks have evolved in countries where disease is prevalent because limited connectivity protects residents from epidemics. But a low-diffusion network in a low-disease environment needlessly compromises the diffusion of good ideas. In general, social networks have evolved to fit their economic and epidemiological environment. Trying to change networks in one country to mimic those in a higher-income country may well be counterproductive.
    Keywords: Development; disease; economic networks; growth; pathogens; Social Networks; technology diffusion
    JEL: E02 I1 O1 O33
    Date: 2018–11
  26. By: Atik, Can
    Date: 2018
  27. By: Baum, Peter
    Abstract: Established organisations seek to reinvent or enhance their business models at a time when the rate of innovation accelerates and a transformation, such as the current digital transformation, drives the global economic environment. Design Thinking (DT) is a new methodology that has been hailed as a method to identify, understand and solve dynamic business issues. This paper investigates how the DT methodology supports an organization in finding new ways of creating, delivering, and capturing digital business value in dynamic environments. After determining the characteristics of business model creation in dynamic environments, we demonstrate how the Design Thinking methodology can guide an organisation through a digital transformative process to capture digital business value.
    Date: 2018
  28. By: Briglauer, Wolfgang; Camarda, Enrico Maria; Vogelsang, Ingo
    Abstract: This paper examines the determinants of sector-specific regulation imposed on broadband markets related both to efficiency objectives of regulators and to those of narrowly defined interest groups. We test hypotheses derived from the normative and positive theoretical literature employing recent panel data on 27 European Union member states taking into account endogeneity of the underlying regulation and market structure variables. Our empirical specification employs three different estimators based on instrumental variables in order to identify causal effects. We find evidence supporting both regulators pursuing normative objectives and inefficiencies related to regulatory path dependence, bureaucracy goals and an inadequate consideration of competition from mobile broadband networks. Our results call for adjustments in the institutional design of the decision making process under the current European Union regulatory framework.
    Keywords: broadband markets,"old" and "new" networks,EU regulatory framework,normative theory,positive theory,path dependence,bureaucracy,EU panel data
    Date: 2018
  29. By: Pavel Ciaian; d'Artis Kancs; Miroslava Rajcaniova
    Abstract: The present paper analyses the BitCoin price formation accounting for the both transaction demand and speculative demand. We apply a GARCH model to high frequency data for the period 2013–2018. In line with the theoretical model, our empirical results confirm that the BitCoin transaction demand and speculative demand for BitCoin have a statistically significant impact on the BitCoin price formation. The BitCoin price responds negatively to higher BitCoin velocity, whereas the BitCoin stock, interest rate and the size of the BitCoin economy exercise an upward pressure on the BitCoin price.
    Keywords: Virtual currencies, BitCoin returns, volatility, price formation, GARCH.
    JEL: E31 E42 G12
    Date: 2018–12–14
  30. By: Vincent Pasquier (CRCGM - Centre de Recherche Clermontois en Gestion et Management - Clermont Auvergne - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA - Université Clermont Auvergne); Alex J Wood (Oxford Internet Institute - University of Oxford [Oxford])
    Date: 2018
  31. By: TATSUMOTO Hirofumi; HIRAI Yuri; WATANABE Toshiya
    Abstract: It is important for Japanese industry to increase productivity and to provide high value-added products and services through data utilization. Under such circumstances, new data technologies such as IoT, big data, and artificial intelligence are expected as keys to greatly improve industrial productivity. In this study, we conducted an exploratory analysis using a survey in the form of a questionnaire based on the research question "Is there a difference between industries regarding data utilization?" As a result of comparing the values (average values) of features for each industry included in the survey, it was found that many industries were similar and there were no industries that exhibited superiority regarding the outcomes of data utilization. In addition, cluster analysis was performed on the response coefficients calculated when data and behavioral attributes were input and the outcome item was output. As a result, it was found that there was an industry group with negative response coefficients and another industry group with positive response coefficients with respect to advanced data resources and technologies. From these findings, it was suggested that there was a gap between "expected outcome of investment in data resources and technologies" and "the actual outcomes of data utilization".
    Date: 2018–12
  32. By: Ricardo Hausmann (Center for International Development at Harvard University); Julian Hinz; Muhammed A. Yildirim (Center for International Development at Harvard University)
    Abstract: Venezuela has seen an unprecedented exodus of people in recent months. In response to a dramatic economic downturn in which inflation is soaring, oil production tanking, and a humanitarian catastrophe unfolding, many Venezuelans are seeking refuge in neighboring countries. However, the lack of official numbers on emigration from the Venezuelan government, and receiving countries largely refusing to acknowledge a refugee status for affected people, it has been difficult to quantify the magnitude of this crisis. In this note we document how we use data from the social media service Twitter to measure the emigration of people from Venezuela. Using a simple statistical model that allows us to correct for a sampling bias in the data, we estimate that up to 2.9 million Venezuelans have left the country in the past year.
    Keywords: migration, social media
    JEL: F22
    Date: 2018–05
  33. By: OGURO Kazumasa; ISHIDA Ryo; YASUOKA Masaya
    Abstract: The purpose of this paper is to show how the mechanism of the reward structure for cryptocurrency mining (known as “Proof of Work†) is applicable to alleviation of the free rider problem for voluntary public goods provision. This paper presents the following results. First, if each individual reports preferences honestly, then the Samuelson condition can hold. It is possible to set an appropriate level of mining. Second, if the scheme (mechanism) offered by our manuscript is introduced, public goods can theoretically be provided at a Pareto optimal level under certain conditions because each rational individual reports true preferences to the government.
    Date: 2018–11

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