nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2020‒01‒20
forty papers chosen by

  1. New Tech v. New Deal: Fintech as a Systemic Phenomenon By Omarova, Saule T.; Library, Cornell
  2. Money's Past is Fintech's Future: Wildcat Crypto, the Digital Dollar, and Citizen Central Banking By Hockett, Robert C.; Library, Cornell
  3. Kontroversi Mata Uang Digital By Nizar, Muhammad Afdi
  4. Local ambassadors promote mobile banking in Northern Peru By Marcos Agurto; Habiba Djebbari; Sudipta Sarangi; Brenda Silupu; Carolina Trivelli; Javier Torres
  5. The economic forces driving FinTech adoption across countries By Jon Frost
  6. The Geography and Equity of Crowdsourced Public Participation for Active Transportation Planning By Griffin, Greg Phillip; Jiao, Junfeng
  7. Financial literacy and its influence on consumers’ internet banking behaviour By Panayiotis C. Andreou; Sofia Anyfantaki
  8. Understanding the disruptive technology ecosystem in Australian urban and housing contexts: a roadmap By Pettit, Christopher; Liu, Edgar; Rennie, Ellie; Goldenfein, Jake; Glackin, Stephen; Hayward, Richard Donald
  9. Fintech contribution to Indonesia's economic growth By Nasihin Aziz, Athoillah
  10. Mobile Money access and usage among the rural communities in Zimbabwe By Dube, Thulani; Chummun, Bibi Zaheenah
  11. Gender Differences in Equity Crowdfunding By Kovacs, Attila
  12. Darknet Usage in the Illegal Wildlife Trade By Cugniere, Laure; Wright, Joss
  13. Merger Policy in Digital Markets: An Ex-Post Assessment By Elena Argentesi; Paolo Buccirossi; Emilio Calvano; Tomaso Duso; Alessia Marrazzo; Salvatore Nava
  14. Características de la reputación online y su relación con las tarifas en los hoteles de categoría superior de la ciudad de Mar del Plata By Marisquerena, Sergio Ezequiel; Zanfrillo, Alicia Inés; Artola, María Antonia
  15. Yes, The Medium Matters: How Facebook and Twitter boost Populism in Europe By Piergiuseppe Fortunato; Marco Pecoraro
  16. Ad Clutter, Time Use and Media Diversity By Ad Clutter, Time Use and Media Diversity; Martin Peitz
  17. The competitive impacts of exclusivity and price transparency in markets with digital platforms By BELLEFLAMME, Paul,; PEITZ, Martin,
  18. Co-producing Mobility: Lessons from Ridesharing for a More Just and Sustainable Autonomous Future By Griffin, Greg Phillip
  19. “Desperately in Need of Car”: Analyzing Crowdfunding Campaigns for Car Purchases and Repairs on By Klein, Nicholas J.; Tran, Minh; Riley, Sarah
  20. Media See-saws: Winners and Losers in Platform Markets By Simon P. Anderson; Martin Peitz
  21. Inefficiencies in Digital Advertising Markets By Brett R Gordon; Kinshuk Jerath; Zsolt Katona; Sridhar Narayanan; Jiwoong Shin; Kenneth C Wilbur
  22. The potential of new technologies to disrupt housing policy By Pettit, Christopher; Crommelin, Laura; Sharam, Andrea; Hulse, Kath; Hayward, Richard Donald
  23. Regulation of AI Technologies in the Construction Industry By Vishnu Sivarudran Pillai; Kira Matus
  24. An alternative framework for a textbook analysis of the money multiplier By Zinn, Jesse Aaron
  25. India’s entrepreneurship policy: Future tasks and vision By Koshy, Perumal
  28. The Simplified Mortgage and Recorded Title ('SMART') Act of 2019 By Hockett, Robert C.; Library, Cornell
  29. The Effect of the Introduction of Online Cash Registers on Reported Turnover in Hungary By Gábor Lovics; Katalin Szõke; Csaba G. Tóth; Bálint Ván
  30. Automation, Skills and the Future of Work: What do Workers Think? By Carlos Mulas-Granados; Richard Varghese; Vizhdan Boranova; Alice deChalendar; Judith Wallenstein
  31. Rousseauvian Money By Hockett, Robert C.; Library, Cornell
  32. Ownership of personal data in the Internet of Things By Janecek, Vaclav
  33. Can a reduction in credit card processing fees offset the effect of a hike in the minimum wage? By La, Jung Joo
  34. Crowdfunding a monthly income: an analysis of the membership platform Patreon By Tobias Regner
  35. Baik-Buruk Inovasi Keuangan By Nizar, Muhammad Afdi
  36. Technological disruption in private housing markets: the case of Airbnb By Crommelin, Laura; Troy, Laurence; Martin, Chris; Parkinson, Sharon; Hayward, Richard Donald
  37. Setting the Transgender Agenda: Intermedia Agenda-Setting in the Digital News Environment By Billard, Thomas J
  38. Crowdsourcing Bike Share Station Locations: Evaluating participation and placement By Griffin, Greg Phillip; Jiao, Junfeng
  39. State of New York v. Deutsche Telecom AG. Brief of Amici Curiae Nicholas Economides, John Kwoka, Thomas Philippon, Robert Seamans, Hal Singer, Marshall Steinbaum, and Lawrence J. White in Support of Plaintiffs By Nicholas Economides; John Kwoka; Thomas Philippon; Robert Seamans; Hal Singer; Marshall Steinbaum; Lawrence J. White
  40. Artificial Intelligence in Health Care: A Report from the National Academy of Medicine By Michael E. Matheny; Danielle Whicher; Sonoo Thadaney Israni

  1. By: Omarova, Saule T.; Library, Cornell
    Abstract: 36 Yale Journal on Regulation 735 (2019). Fintech is the hottest topic in finance today. Recent advances in cryptography, data analytics, and artificial intelligence are visibly “disrupting” traditional methods of delivering financial services and conducting financial transactions. Less visibly, fintech is also changing the way we think about finance: The rise of fintech is gradually recasting our collective understanding of the financial system as simply another sphere of normatively neutral information technology and objective computer science. By making financial transactions faster, cheaper, and more easily accessible, fintech seems to promise a micro-level “win-win” solution to the financial system’s many ills. This Article challenges such narratives and presents an alternative account of fintech as a systemic, macro-level phenomenon. Grounding the analysis of evolving fintech trends in a broader institutional context, the Article exposes the normative and political significance of the current fintech moment. It argues that the arrival of fintech enables a potentially decisive shift in the underlying public-private balance of powers, competencies, and roles in the financial system. In developing this argument, the Article makes three principal scholarly contributions. First, it introduces the concept of the New Deal settlement in finance: a fundamental political arrangement, in force for nearly a century, pursuant to which profit-seeking private actors retain control over allocating capital and generating financial risks, while the sovereign public bears responsibility for maintaining systemic financial stability. Second, the Article advances a novel conceptual framework for understanding the deep-seated financial dynamics that have eroded the New Deal settlement in recent decades. In particular, it offers a working taxonomy of principal mechanisms that both (a) enable private market actors to continuously synthesize tradable financial assets and scale up trading activities, and (b) undermine the public’s ability to manage the resulting system-wide risks. Finally, the Article shows how and why specific fintech applications – cryptocurrencies, distributed ledger technologies, digital crowdfunding, and robo-advising – are poised to amplify the effect of these destabilizing mechanisms, and thus potentially exacerbate the tensions and imbalances in today’s financial markets and the broader economy. It is this potential that renders fintech a public policy challenge of the highest order.
    Date: 2018–07–30
  2. By: Hockett, Robert C.; Library, Cornell
    Abstract: I argue that crypto-currencies will soon go the way of the ‘wildcat’ banknotes of the mid-19th century. As central banks worldwide upgrade their payments systems, the Fed will begin issuing a ‘digital dollar’ that leaves no licit function for what I call ‘wildcat crypto.’ But the imminent change heralds far more than a shakeout in ‘fintech.’ It will also make possible a new era of what I call ‘Citizen Central Banking.’ The Fed will administer a national system of what I call ‘Citizen Accounts.’ This will not only end the problem of the ‘unbanked,’ it also will simplify monetary policy. Instead of working through private bank ‘middlemen’ that it hopes will lend QE money to borrowers during a downturn, the Fed will be able to do ‘helicopter drops’ directly into Fed Citizen Accounts. And rather than rely solely on interbank lending rate hikes or countercyclical capital buffering during periods of froth, the Fed will be able to impound money through the more ‘carrot-like’ measure of interest credited to those accounts. We are at last on the verge of establishing a true ‘Fed for the People.’
    Date: 2019–02–08
  3. By: Nizar, Muhammad Afdi
    Abstract: This paper aims to examine the main points of the emergence of controversies regarding digital currencies. By using secondary data and qualitative-descriptive analysis, it was found that digital currency cannot replace the function of money as a medium of exchange, a store of value, and a unit of account. Digital currencies also cannot be used as investment instruments because their prices are volatile and have the potential to cause speculative bubbles. The treatment of countries against these currencies also varies. Of the 251 countries that are familiar with digital currencies, around 43% of them recognize digital currency as a legal tender, while the rest recognize it as a commodity, property, and barter goods.
    Keywords: medium of exchange, cryptocurrency, digital currency, legal tender, store of value, unit of account, money,
    JEL: C81 E42 E52 E58 G13 G15 G18 O31 O33
    Date: 2018–11–30
  4. By: Marcos Agurto (Universidad de Piura); Habiba Djebbari (Aix-Mareseille Universite); Sudipta Sarangi (Virginia Tech); Brenda Silupu (Universidad de Piura); Carolina Trivelli (Instituto de Estudios Peruanos); Javier Torres (Universidad del Pacifico)
    Abstract: We experiment with a novel way to boost information acquisition that exploits existing social ties between the promoter of a new financial technology and community members. We offer information and training workshops on a new mobile-money platform in periurban and rural areas in Peru. In the treatment group, workshops are led by promoters who are personally known to the invited participants. In the control group, comparable individuals are invited to attend similar workshops, but the workshops are led by agents external to the community. Our findings suggest that lack of information impedes product adoption, which is itself limited by lack of trust in the individual who provides the information.
    Keywords: Financial inclusion, social networks, information transmission, trust
    JEL: D91 G23 I22 I31 O33
    Date: 2020–01
  5. By: Jon Frost
    Abstract: FinTech is being adopted across markets worldwide - but not evenly. Why not? This paper reviews the evidence. In some economies, especially in the developing world, adoption is being driven by an unmet demand for financial services. FinTech promises to deliver greater financial inclusion. In other economies, adoption can be related to the high cost of finance, a supportive regulatory environment, and other macroeconomic factors. Finally, demographics play an important role, as younger cohorts are more likely to trust and adopt FinTech services. Where FinTech helps to make the financial system more inclusive and efficient, this could benefit economic growth. Yet the market failures traditionally present in finance remain relevant, and may arise in new guises.
    Keywords: FinTech; digital innovation; financial inclusion; financial regulation
    JEL: E51 G23 O33
    Date: 2020–01
  6. By: Griffin, Greg Phillip (Texas A&M Transportation Institute); Jiao, Junfeng
    Abstract: Transportation planners increasingly use new forms of online public participation alongside traditional in-person approaches, including crowdsourcing tools capable of encouraging geographically specific input. Digital involvement may be particularly valuable in exploring methods to plan at a megaregional scale. Research is beginning to address digital inequalities, recognizing that broadband and smartphone access may restrict opportunities for disadvantaged groups. However, the geography and equity of participation remain pragmatic issues for practice and research. This paper reviews the geography and equity of the participation methods in Austin, Texas for active transportation (bicycling and pedestrian) through three approaches to co-produce informed plans: in-person meetings, public participation geographic information system (PPGIS), and an emerging smartphone platform that logs trips and encourages input on route quality. In addition to spatial analysis with standard deviational ellipses, we include qualitative case analysis to contextualize the geographic and equity implications of different participation approaches. Results show that both online techniques resulted in a larger geography for participation than in-person meetings, with the regional PPGIS covering the most area. However, review of the income levels in each area shows that use of the smartphone-based crowdsourcing platform was aligned with lowest-income areas. This study shows that online participation methods are not homogeneous regarding geography or equity. In some contexts, smartphone applications can help reach lower-income communities, even when compared with in-person meetings. Crowdsourcing tools can be valuable approaches to increase geography and equity of public participation in transportation planning.
    Date: 2019–01–11
  7. By: Panayiotis C. Andreou (Cyprus University of Technology and Durham University); Sofia Anyfantaki (Bank of Greece and Athens University of Economics and Business)
    Abstract: This study examines the level and antecedents of financial literacy and investigates its influence on consumers’ internet banking behaviour. The focus is on Cyprus, a country that experienced an unprecedented financial crisis in 2013 that caused an enormous shrinkage of the banking sector. Ever since then, banks have been investing in financial innovations, such as internet banking (i-banking), aiming to enhance customer service and efficiency in the age of financial digitalization. Notwithstanding, the results show that financial literacy is yet too low in Cyprus, whereby only 37.33% of the study’s survey adults have a good financial knowledge proficiency level. The results indicate that financially literate consumers show a strong preference for frequent use of i-banking, whereby the odds of using i-banking frequently are increased by more than 64% for one standard deviation increase in the respondents’ financial knowledge score. The findings highlight the crucial interplay of digital and financial sophistication, and their positive influence on consumers’ usage of digital financial services. The evidence from Cyprus also points to policy directions according to which digital financial education programs should be a central element in national financial literacy strategies.
    Keywords: financial literacy; internet banking; digital literacy; financial education; national strategy.
    JEL: D14 D91 G21
    Date: 2019–12
  8. By: Pettit, Christopher; Liu, Edgar; Rennie, Ellie; Goldenfein, Jake; Glackin, Stephen; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This research reviews different emerging digital and disruptive technologies, such as blockchain, in relation to housing, housing assistance and planning systems. While much work has been done in opening up property data assets across governments, significant work is required on data standards, privacy standards and data sharing across government, industry and the non-profit sectors.
    Date: 2018–10–24
  9. By: Nasihin Aziz, Athoillah
    Abstract: Fintech investment increased substantially in 2018 with total global investment dollars in all M&A, PE, and VC more than doubling from $ 50.8 billion in 2017 to $ 111.8 billion in 2018. In Indonesia, the financial technology industry ( fintech) is growing The rapid growth of both fintech payments and loans, this is reflected in the distribution of fintech loans which penetrated Rp33.2 trillion in May 2019, while fintech payment transactions reached Rp47.1 trillion in 2018. Indonesian fintech players are still dominant in the payment business ( 43%), loans (17%), and the remainder in the form of aggregators, crowdfunding and others. The development of fintech has increased Indonesia's GDP by Rp25.97 trillion.
    Keywords: Digital economy, financial technology (fintech), economic growth
    JEL: O10 O11
    Date: 2019–12–30
  10. By: Dube, Thulani; Chummun, Bibi Zaheenah
    Abstract: The study sought to determine the level of mobile money access and usage among the rural households in Zimbabwe. A descriptive research design was employed in a mixed method research approach. The study population comprised of all rural districts in the Midlands Province and the target population was 8258 rural households. A sample size of 367 household heads was determined in the Kwekwe Rural District. A questionnaire was used as a data collecting instrument. The results of the study revealed a moderate use of mobile money by rural households. The widely used service was the funds transfer services (sending and receiving) with a mean score of 1.81. Mobile money was used as a vehicle of remitting funds. More over mobile money had improved access to financial services as indicated by the reduced distances walked to access the nearest mobile money agents. Majority of the users were walking distances of less than 10km to access the service. When assessing the demographic influences on the use of mobile money, an association between education and mobile money use was supported by a Pearson Chi-Square value of 62.803 at p value 0.000.
    Keywords: Mobile money, low-income rural households, access, usage
    JEL: O1
    Date: 2019–12–03
  11. By: Kovacs, Attila
    Abstract: Online peer-to-peer investment platforms are increasingly popular venues for entrepreneurs and investors to engage in financial transactions without the involvement of banks and loan managers. Despite their purported transparency and lack of bias, it is unclear whether social inequalities present in traditional capital markets transfer to these platforms as well, impeding their hoped revolutionary potential. In this paper we analyze nearly four years’ worth of data from one of the leading UK-based equity crowdfunding platforms. Specifically, we investigate gender-related differences in patterns of entrepreneurship, investment, and success. In agreement with offline trends, men have more activity on the platform. Yet, women entrepreneurs benefit of higher success rates in fundraising, a finding that mimics trends seen on some rewardsbased crowdfunding platforms. Surprisingly, we also find that female investors tend to choose campaigns that have lower success rates. Our findings contribute to a better understanding of gender-related discrepancies in success on the online capital market and point to differences in activity that are key factors in the apparent patterns of gender inequality.
    Date: 2018–11–07
  12. By: Cugniere, Laure; Wright, Joss (University of Oxford)
    Abstract: The darknet is a network of websites that can be accessed only via special software that hides the details of the user’s connection, and also allows websites to be hosted without revealing their location or operator. Today, large-scale darknet marketplaces exist for illegal drugs, firearms, hacking tools, stolen identity documents, and a wide variety of other illicit goods. The darknet has not, to date, proven to be a particularly attractive platform for the buying and selling of illegal wildlife products. Despite this, the darknet provides a 'marketplace of last resort' that becomes increasingly attractive over other, more accessible, online services as law enforcement and platform operators enforce policies against trading in illegal wildlife products. This makes the ongoing study of darknet markets an important avenue for research as other policies against online illegal wildlife trading emerge.
    Date: 2019–02–05
  13. By: Elena Argentesi; Paolo Buccirossi; Emilio Calvano; Tomaso Duso; Alessia Marrazzo; Salvatore Nava
    Abstract: This paper presents a broad retrospective evaluation of mergers and merger decisions in the digital sector. We first discuss the most crucial features of digital markets such as network effects, multi-sidedness, big data, and rapid innovation that create important challenges for competition policy. We show that these features have been key determinants of the theories of harm in major merger cases in the past few years. We then analyse the characteristics of almost 300 acquisitions carried out by three major digital companies –Amazon, Facebook, and Google –between 2008 and 2018. We cluster target companies on their area of economic activity and show that they span a wide range of economic sectors. In most cases, their products and services appear to be complementary to those supplied by the acquirers. Moreover, target companies seem to be particularly young, being four-years-old or younger in nearly 60% of cases at the time of the acquisition. Finally, we examine two important merger cases, Facebook/Instagram and Google/Waze, providing a systematic assessment of the theories of harm considered by the UK competition authorities as well as evidence on the evolution of the market after the transactions were approved. We discuss whether the CAs performed complete and careful analyses to foresee the competitive consequences of the investigated mergers and whether a more effective merger control regime can be achieved within the current legal framework.
    Keywords: digital markets, mergers, network effects, big data, platforms, ex-post, antitrust
    JEL: L40 K21
    Date: 2019
  14. By: Marisquerena, Sergio Ezequiel; Zanfrillo, Alicia Inés; Artola, María Antonia
    Abstract: Con la amplia difusión de las herramientas de la web 2.0, el desenvolvimiento del sector hotelero es afectado en forma creciente por las opiniones y valoraciones consignadas en las plataformas de turismo y redes sociales, donde los usuarios recomiendan y advierten a otros, por los servicios recibidos en los hoteles donde se hospedaron. Esta investigación tiene como propósito caracterizar la reputación online de los hoteles marplatenses en TripAdvisor, describiendo el perfil de usuario que realiza mayores valoraciones; y la relación entre el índice de popularidad y la tarifa base doble -habitación para dos personas adultas-; a fin de ofrecer lineamientos para la definición de estrategias que permitan mejorar la competitividad del negocio. El estudio se realizó a través de la captación y análisis descriptivo-correlacional de los perfiles en TripAdvisor de los hoteles de tres, cuatro y cinco estrellas de la ciudad de Mar del Plata. Los resultados muestran que los hoteles más valorados son los que poseen categorías más altas, siendo los perfiles de usuarios que más participan en TripAdvisor aquellos huéspedes que se alojan en la categoría de parejas. Se advierte una relación leveentre el índice de popularidad y los precios fijados para todas las categorías de hoteles.
    Keywords: Hoteles; Tarifas; Clientes; Opinión; World Wide Web;
    Date: 2019
  15. By: Piergiuseppe Fortunato; Marco Pecoraro
    Abstract: This paper examines how socio-economic characteristics, changes in the technology of political communication and their interactions affect the sentiments of the electorate and favor the spread of populist ideas in Europe. Using both European-wide and national surveys we find a significant association between exposure to online political activity and diffusion of populist ideas such as Euroscepticism only among less educated and economically vulnerable individuals. We also show that it is not the use of the internet per se that matters but the specific use of social networks for political activity.
    Keywords: Populism, Euroscepticism, Internet, Social Networks, Education
    JEL: D72 N34 L82 L86 Z13
    Date: 2020–01
  16. By: Ad Clutter, Time Use and Media Diversity; Martin Peitz
    Abstract: We introduce advertising congestion along with a time-use model of consumer choice among media. Both consumers and advertisers multi-home. Higher equilibrium advertising levels ensue on less popular media platforms because platforms treat consumer attention as a common property resource: smaller platforms internalize less the congestion from advertising and so advertise more. Platform entry raises the ad nuisance “price” to consumers and diminishes the quality of the consumption experience on all platforms. With symmetric platforms, entry still leads to higher consumer benefits. However, entry of less attractive platforms can increase ad nuisance levels so much that consumers are worse off.
    Keywords: media economics, advertising clutter, limited attention, information congestion, two-sided markets
    JEL: D43 L13
    Date: 2019–12
  17. By: BELLEFLAMME, Paul, (Université catholique de Louvain, CORE, Belgium); PEITZ, Martin, (Universität Mannheim)
    Abstract: Two-sided digital platforms not only decide about the price structure, but often have non-price instruments at their disposal. Our objective in this article is to review recent work that aims at better understanding the possible pro- or anti-competitive effects of two specific non-price strategies: exclusivity as the contractual obligation to singlehome and price transparency as the disclosure of information about otherwise unobserved prices paid by users on the other side. Regarding the incentives that platforms may have to restrict users from visiting more than one platform at a time, one finding is that when platforms find it profitable to impose exclusivity on one side, users on the other side always suffer. Regarding price transparency in situations in which users on one side may not observe the prices that platforms set on the other side, we find that a monopoly platform is willing to remedy this problem by being transparent about all prices, whereas competing platform would in general prefer more opaqueness. From our findings we derive lessons for competition authorities.
    JEL: H20 H31 H50
    Date: 2019–11–18
  18. By: Griffin, Greg Phillip (Texas A&M Transportation Institute)
    Abstract: Big changes in technology create big opportunities for sustainability. Decreasing the number of cars on the road through carpooling can mitigate many problems related to transportation, including traffic congestion, emissions, and safety. Mobile information and communication technologies (ICTs) provide communicative and financial capabilities, termed affordances; to make carpooling much more convenient. However, research has yet to distinguish the role of affordances in reaching a critical mass of drivers. This chapter showcases empirical results from an in-depth study of a carpooling app, coupled with an innovative policy pilot to provide toll road discounts for carpool trips registered with the program. Results from the pilot countered with a for-profit model suggest drivers require sufficient reimbursement for travel costs and coordination time, to reach a critical mass needed to support a competitive travel option. However, recruitment tactics such as paid and organic media coverage, face-to-face events and incentives, and driver-focused outreach support growth of the carpool system registration, and use. Additional studies are needed to evaluate different combinations of ridesharing affordances and transportation policies to determine whether communities can realize the benefits of a critical mass of ICT-supported carpooling.
    Date: 2018–12–06
  19. By: Klein, Nicholas J. (Conrell University); Tran, Minh; Riley, Sarah
    Abstract: Our study explores the phenomenon of using the crowdfunding website to raise money to purchase and or repair a personal vehicle. We use both text mining and qualitative analysis methods to ask three research questions about GoFundMe campaigns from the United States created in 2018 and 2019. First, how do campaigners on GoFundMe describe their need for personal vehicles? Second, what precipitating events led them to seek crowdfunding for a car purchase or repair? Third, what are broader contexts for these requests for financial assistance? We find that many campaigns describe several interrelated crises, complications, or challenges that the campaigners faced, such as medical conditions, loss of employment, and housing crises. Most campaigners are without a functioning car because of an unexpected event—a car crash, a breakdown, or repairs piling up—combined with their inability to pay for the repairs or replacement. Finally, we find that the cars are desired to ease travel to work and school, to chauffeur children, and, in a surprisingly large number of campaigns, to access medical care.
    Date: 2019–12–10
  20. By: Simon P. Anderson; Martin Peitz
    Abstract: e customize the aggregative game approach to oligopoly to study media platforms which may differ by popularity. Advertiser, platform, and consumer surplus are tied together by a simple summary statistic. When media are ad-financed and ads are a nuisance to consumers we establish see-saws between consumers and advertisers. Entry increases consumer surplus, but decreases advertiser surplus if total platform profits decrease with entry. Merger decreases consumer surplus, but advertiser surplus tends to increase. By contrast, when platforms use two-sided pricing or consumers like advertising, advertiser and consumer interests are often aligned. We show see-saws under alternative homing assumptions.
    Keywords: two-sided markets, media economics, mergers, entry, advertising, aggregative games, single-homing, multi-homing, competitive bottleneck
    JEL: D43 L13
    Date: 2019–12
  21. By: Brett R Gordon; Kinshuk Jerath; Zsolt Katona; Sridhar Narayanan; Jiwoong Shin; Kenneth C Wilbur
    Abstract: Digital advertising markets are growing and attracting increased scrutiny. This paper explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking and ad fraud. These topics are not unique to digital advertising, but each manifests in new ways in markets for digital ads. We focus on relevant findings in the academic literature, recent developments in practice, and promising topics for future research.
    Date: 2019–12
  22. By: Pettit, Christopher; Crommelin, Laura; Sharam, Andrea; Hulse, Kath; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This study examined disruptive digital technologies, investigating their potential for reshaping housing markets and reconfiguring housing policy. It provides housing policy makers and practitioners with a nuanced understanding of how technology is already restructuring housing markets and affecting housing assistance programs, as well as insights into likely future developments.
    Date: 2018–12–03
  23. By: Vishnu Sivarudran Pillai (Chief Economist for Asia Pacific, NATIXIS, Department of Public Policy, The Hong Kong University of Science and Technology); Kira Matus (Associate Professor for the Division of Social Science, Associate Professor for Division of Public Policy, Department of Economics & Institute for Emerging Market Studies, the Hong Kong University of Science and Technology)
    Abstract: The development of Artificial Intelligence (AI) -based technologies for the construction industry, though not as advanced as in some areas, is progressing. The degree of automation in construction is anticipated to eventually lead to humanoid robots and autonomous back loaders or cranes operating at construction sites. The prospect of a highly automated construction industry is a medium-term future prospect. Hence it is imperative to proactively understand the regulatory gaps, to support policy interventions to mitigate potential risks. Regulation of futuristic technologies like AI is challenging in sectors where there is a lack of adequate tacit and applied knowledge. AI regulation is complicated by the massiveness of the construction industry, characterized by a broad spectrum of actors and activities. We propose a framework to understand the AI inclusion in the construction industry and identification of risks and regulatory gaps by considering the diverse stakeholders and their risk perception.
    Date: 2019–05
  24. By: Zinn, Jesse Aaron (Clayton State University)
    Abstract: In textbooks on the theory of money it is standard practice to hold both reserves and deposits fixed to study the relationship between the quantity of currency in the economy and the money multiplier. But doing so leads to a result that is contrary to the notion that if the public withdraws from their deposits in order to increase currency holdings then bank lending will decrease, causing a fall in both the money supply and the money multiplier. Specifically, when reserves are greater than deposits and both are fixed the money multiplier has a positive relationship with both currency holdings and the currency-deposit ratio. I show that these results are artifacts of implicitly assuming that the monetary authority behaves so as to keep deposits and reserves constant in response to a change in currency held by the public. Dropping these assumptions and abstracting from any response from the central bank results in an unconditionally non-positive relationship between currency holdings and the money multiplier.
    Date: 2018–11–07
  25. By: Koshy, Perumal
    Abstract: Entrepreneurs and free enterprises are crucial for economic independence. Mahatma Gandhi gave priority to revitalizing entrepreneurship from the grassroots so that there would be a strong community of entrepreneurs to rebuild India. However, after independence, Indian economy emerged as a mixed economic system, with a plethora of regulations, inspectors, rules primarily targeting the businesses and entrepreneurs. Even the reforms heralded in 1991 could not completely demolish regulatory overburden that strangles entrepreneurs. Indian entrepreneurship policy framework and startup ecosystem has evolved over the years as one with potential to facilitate new venture creation at ease. The current ecosystem and reformed regulatory framework is much more entrepreneur and small business friendly. However, much needs to happen at the ground level. This article looks at how entrepreneurial ecosystem evolved and emerged in India. How was it envisioned and how it shaped up during the decades under various Indian governments? And it concludes with a note on future task and scope.
    Keywords: Entrepreneurship; Policy; India; Startup; Ecosystem; Businesses; Reforms; Business incubators; Finance for Entrepreneurs
    JEL: L5 L51 L53 M13
    Date: 2019–12–06
  26. By: Tibahary, Abdul Rahman (Universitas Muhammadiyah Palu)
    Abstract: Information technology has a profound influence on the world economy. In relation to extend of these technologies, especially telecommunications, multimedia and information technology (telematics) can eventually change the order of the organization and social relationships. In this study question the fulfillment about statements of the tax payable on the E-Commerce transaction which of course will not be apart from the tax law concerning on the E-Commerce transaction, statements against the tax payable on the E-Commerce transaction and legal certainty in conducting the tax report on the E-commerce transaction. The method used in this research is descriptive analytic is a research method that aims to describe the facts in the form of the data to the primary legal materials in related to the form of laws and regulations and the secondary legal materials (doctrine, the expert opinion of the leading law) as well as tertiary legal materials. While the approach in this study used a qualitative which seeks to combine normative and empirical. In this research are expected to acquire a comprehensive describe of the tax payable statement on the E-Commerce transaction. The result on the tax on E-Commerce transactions equal to the ordinary transactions in accordance with the explanation in Article 11 section (1) Law Concerning Income Tax that regulated Value Added Tax and Sales Tax on Luxury Goods adheres to the accrual principle, it meaning the tax occurs in when the delivery of taxable goods or on the delivery of taxable services, although payment for such delivery has not yet fully accepted or received, or in the importation of taxable goods. When the tax payable for transactions made through the E-Commerce are subject to this article. The tax payable related to the report which is derived from the transactions on the E-Commerce it can be undertaken with the approach of harmonization and convergence so that certainty of the tax report above electronic transactions can be implement as well as possible.
    Date: 2019–02–27
  27. By: O'Neil, Meghan M. (University of Michigan Law School); Prescott, JJ
    Abstract: Ability-to-pay determinations are essential when governments use money-based alternative sanctions, like fines, to enforce laws. One longstanding difficulty in the U.S. has been the extreme lack of guidance on how courts are to determine a litigant’s ability to pay. The result has been a seat-of-the-pants approach that is inefficient and inaccurate, and, as a consequence, very socially costly. Fortunately, online platform technology presents a promising avenue for reform. In particular, platform technology offers the potential to increase litigant access, reduce costs, and ensure consistent and fair treatment—all of which should lead to more accurate sanctions. We use interviews, surveys, and case-level data to evaluate and discuss the experiences of six courts that recently adopted an online ability-to-pay assessment tool that streamlines and standardizes ability-to-pay determinations. Our findings suggest that the online tool improves accuracy and therefore the effectiveness of fines as punishments, and so it may make the use of fines as sanctions more socially attractive.
    Date: 2019–04–01
  28. By: Hockett, Robert C.; Library, Cornell
    Abstract: We design a digital home mortgage and title registry system, overseen by a new public sector entity, to provide clearing and settlement efficiencies in mortgage-related instruments comparable to those enabled by the Depository Trust Company (‘DTC’) in other investment securities. We believe such a system to be a prerequisite to the return of a safe, transparent, and liquid ‘private’ secondary market in mortgage loans.
    Date: 2019–03–08
  29. By: Gábor Lovics (Központi Statisztikai Hivatal (Hungarian Central Statistical Office)); Katalin Szõke (Magyar Nemzeti Bank (Central Bank of Hungary)); Csaba G. Tóth (KSH Népességtudományi Kutatóintézet (Hungarian Demographic Research Institute)); Bálint Ván (Pénzügyminisztérium (Ministry of Finance))
    Abstract: In order to reduce the shadow economy, in 2013 and 2014 the Hungarian government introduced mandatory online cash registers (OCR) in some sectors. As a result, almost 200,000 OCRs have been installed by 100,000 enterprises. In this paper we use micro data to estimate the effect of OCR introduction on reported turnover in the most affected sectors: retail, and accommodation and food services (AFS). We assume that OCR installation does not change a company’s operating model, so the increase in reported turnover around the installation date reflects a reduction in the shadow economy. We identify a remarkable effect of OCR introduction on reported turnover in both sectors. For small enterprises, reported turnover increased by 23 percent and 35.1 percent in the retail and AFS sector, respectively. We also find significant but smaller effects for medium-sized enterprises in both sectors. For large companies, we only observe a significant impact in the AFS sector.
    Keywords: Value Added Tax, Tax Evasion, Shadow Economy
    JEL: E26 H25 H26
    Date: 2019
  30. By: Carlos Mulas-Granados; Richard Varghese; Vizhdan Boranova; Alice deChalendar; Judith Wallenstein
    Abstract: We exploit a survey data set that contains information on how 11,000 workers across advanced and emerging market economies perceive the main forces shaping the future of work. In general, workers feel more positive than negative about automation, especially in emerging markets. We find that negative perceptions about automation are prevalent among workers who are older, poorer, more exposed to job volatility, and from countries with higher levels of robot penetration. Perceptions over automation are positively viewed by workers with higher levels of job satisfaction, higher educational attainment, and from countries with stronger labor protection. Workers with positive perceptions of automation also tend to respond that re-education and retraining will be needed to adapt to rapidly evolving skill demands. These workers expect governments to have a role in shaping the future of work through protection of labor and new forms of social benefits. The demand for protection and benefits is more significant among women and workers that have suffered job volatility.
    Date: 2019–12–20
  31. By: Hockett, Robert C.; Library, Cornell
    Abstract: I show that the intimate functional links among states, monies, and financial systems, ubiquitous across history and geography as they are, are not accidental. I do so by analytically 'deriving' first the polity, then money and finance, from a temporally extended implicit covenant that is both grounded in and facilitative of ongoing joint agency among persons. This lends to state and money alike their shared normative and, once formally systematized, legal character. I indicate throughout how this shared genesis, function, and normative character keep state, money, and ultimately finance practically ‘joined at the hip,’ and manifest how polity and economy, indeed our political and productive selves, are thus joined as well. To recognize and to ‘own’ this, I conclude, is in a sense finally to own our own selves.
    Date: 2018–11–06
  32. By: Janecek, Vaclav
    Abstract: This article analyses, defines, and refines the concepts of ownership and personal data to explore their compatibility in the context of EU law. It critically examines the traditional dividing line between personal and non-personal data and argues for a strict conceptual separation of personal data from personal information. The article also considers whether, and to what extent, the concept of ownership can be applied to personal data in the context of the Internet of Things (IoT). This consideration is framed around two main approaches shaping all ownership theories: a bottom-up and top-down approach. Via these dual lenses, the article reviews existing debates relating to four elements supporting introduction of ownership of personal data, namely the elements of control, protection, valuation, and allocation of personal data. It then explores the explanatory advantages and disadvantages of the two approaches in relation to each of these elements as well as to ownership of personal data in IoT at large. Lastly, the article outlines a revised approach to ownership of personal data in IoT that may serve as a blueprint for future work in this area and inform regulatory and policy debates.
    Date: 2018–05–24
  33. By: La, Jung Joo
    Abstract: The objective of this study is to assess whether a reduction in credit card processing fees can offset the effect of a hike in the minimum wage by examining the unique case of South Korea. To do so, this study introduces a theoretical model with money and credit as the explicit means of payment. In particular, it develops a general equilibrium model with micro-foundations for dealing with the relationship between minimum wage increases and job automation, and takes a long-run approach in the quantitative analysis. Contrary to the existing literature, the study shows that a minimum wage hike negatively and significantly affects overall employment. The calibrated results show that a 13.6% hike in the minimum wage causes a 16.46% reduction in the demand for simple labor earning the minimum wage, and also decreases the demand for non-simple labor by 0.157%. In contrast, if a policy of reducing credit card processing fees is adopted to ease the negative effect of a hike in minimum wage on employment, a 0.65% reduction in these fees (derived by shifting the burden of interest on credit card debt from seller to buyer) results in a 0.09% decrease in the labor demand.
    Keywords: Hike in minimum wage; Reduction in credit card processing fee; Job automation
    JEL: E42 J23 J38
    Date: 2019–12–31
  34. By: Tobias Regner (FSU Jena)
    Abstract: Membership platforms allow creators to crowdfund a monthly income, while campaigns on conventional reward crowdfunding portals aim to reach a specified funding target within a pre-set period. We study transaction-level data from Patreon, the biggest membership platform, to gain insights about behavioral patterns at this emerging type of crowdfunding. Our analysis shows that hundreds of creators crowdfund a sizable income (more than $2,500 monthly). We also find that measures of communication quality are determinants of project success, in line with the related literature. Funding dynamics - pledges as well as deletions - are heterogeneous across campaigns. Our analysis suggests that the option to delete the monthly pledge to a creator at any time serves as a feedback mechanism. We conclude that crowdfunding a monthly income offers the creative class a viable alternative to advertising-based business models.
    Keywords: crowdfunding, Patreon, funding dynamics, cultural goods, membership platform
    JEL: D90 G23 L26 L82 L86
    Date: 2020–01–06
  35. By: Nizar, Muhammad Afdi
    Abstract: This paper aims to describe the various constituents in financial innovation through a review of the financial innovation literature. Therefore, the approach used in this paper refers to a typical approach to the financial innovation literature that focuses on: (i) conception of financial innovation which includes features and types of financial innovation; (ii) determinants of financial innovation; and (iii) the effects of financial innovation. This paper also presents a number of perspectives relating to the regulation of financial innovation.
    Keywords: spiral effect, fintech, financial innovation, organizational innovation, product innovation, process innovation, global financial crisis, technology, information and communication
    JEL: G01 G1 G10 G18 G2 G20 G28 O3 O31 O32 O33
    Date: 2019–12–20
  36. By: Crommelin, Laura; Troy, Laurence; Martin, Chris; Parkinson, Sharon; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This study looks at how short term letting (STL) platforms like Airbnb, HomeAway and are reshaping housing opportunity in private markets. It analysed Airbnb listing data from Sydney and Melbourne to reveal insights into the extent STL is contributing to housing affordability issues and to highlight the most effective responses available to regulators.
    Date: 2018–11–07
  37. By: Billard, Thomas J (University of Southern California)
    Abstract: Transgender issues have recently emerged as highly salient topics of political contestation in the United States. This paper investigates one relevant factor in that ascent: intermedia agenda-setting between digital-native and legacy press news. Through a content analysis of the top-five digital-native and top-five legacy press online news entities from 2014 to 2015, we investigate the dynamics of intermedia agenda-setting in the context of transgender topics, both at the level of attention to transgender topics in general and at the level of attention to specific issues related to the transgender community (e.g., anti-transgender violence). Results indicate significant causal effects of digital-native coverage on legacy press coverage at the level of general attention to transgender topics. However, results also indicate that at the level of specific transgender issues, digital-native coverage drives legacy press coverage on some issues, which legacy press coverage drives digital-native coverage on others. Implications for intermedia agenda-setting in the digital news media environment and for the future of transgender political rights movements are discussed.
    Date: 2018–10–09
  38. By: Griffin, Greg Phillip (Texas A&M Transportation Institute); Jiao, Junfeng
    Abstract: Problem, research strategy, and findings: Planners increasingly involve stakeholders in co-producing vital planning information by crowdsourcing data using online map-based commenting platforms. Few studies, however, investigate the role and impact of such online platforms on planning outcomes. We evaluate the impact of participant input via a public participation geographic information system (PPGIS), a platform to suggest the placement of new bike share stations in New York City (NY) and Chicago (IL). We conducted 2 analyses to evaluate how close planners built new bike share stations to those suggested on PPGIS platforms. According to our proximity analysis, only a small percentage of built stations were within 100 feet (30 m) of suggested stations, but our geospatial analysis showed a substantial clustering of suggested and built stations in both cities that was not likely due to random distribution. We found that the PPGIS platforms have great promise for creating genuine co-production of planning knowledge and insights and that system planners did take account of the suggestions offered online. We did not, however, interview planners in either system, and both cities may be atypical, as is bike share planning; moreover, multiple factors influence where bike stations can be located, so not all suggested stations could be built. Takeaway for practice: Planners can use PPGIS and similar platforms to help stakeholders learn by doing and to increase their own local knowledge to improve planning outcomes. Planners should work to develop better online participatory systems and to allow stakeholders to provide more and better data, continuing to evaluate PPGIS efforts to improve the transparency and legitimacy of online public involvement processes.
    Date: 2018–11–05
  39. By: Nicholas Economides (Professor of Economics, NYU Stern School of Business, New York, New York 10012); John Kwoka (Neal F. Finnegan Distinguished Professor of Economics, College of Social Sciences and Humanities, Northeastern University); Thomas Philippon (Max L. Heine Professor of Finance, NYU Stern School of Business, New York, New York 10012); Robert Seamans (Associate Professor of Management and Organizations, NYU Stern School of Business, New York, New York 10012); Hal Singer (Managing Director at Econ One, Adjunct Professor at Georgetown McDonough School of Business); Marshall Steinbaum (Assistant Professor, Economics Department, University of Utah); Lawrence J. White (Robert Kavesh Professor of Economics, NYU Stern School of Business, New York, New York 10012)
    Abstract: As economists with significant experience in competition, telecommunications, and regulatory matters, we have filed the attached brief in the case of State of New York v. Deutsche Telecom supporting the plaintiffs, who have sued to prevent the merger of T-Mobile and Sprint. We explain why the proposed merger of Sprint and T-Mobile and the elimination of Sprint as a competitor, even in the presence of the U.S. Department of Justice's proposed remedy (as embodied in the DOJ's Proposed Final Judgment), would predictably inflict serious antitrust injury on consumers and competition.
    Keywords: antitrust, telecommunications, merger, Sprint, T-Mobile, AT&T, Verizon, Dish, DOJ
    JEL: L1 L4 L5 L9
    Date: 2020–01
  40. By: Michael E. Matheny; Danielle Whicher; Sonoo Thadaney Israni
    Abstract: The promise of artificial intelligence (AI) in health care offers substantial opportunities to improve patient and clinical team outcomes, reduce costs, and influence population health.
    Keywords: artificial intelligence, health care, patient, clinical, population health

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.