nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2020‒01‒27
34 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Determinant factors influencing people to use motorcycle taxi online services using the Analytical Hierarchy Process By Raco, Jozef; Raton, Yulius; Taroreh, Frankie; Muaja, Octavianus
  2. Where did reading proficiency improve over time? By Francesco Avvisati
  3. An empirical analysis of mobile banking adoption in Vietnam By Vuong, Bui Nhat; Hieu, Vo Thi; Trang, Ngo Thi Thuy
  4. Money Creation in Fiat and Digital Currency Systems By Marco Gross; Christoph Siebenbrunner
  5. Decoding First Amendment Coverage of Computer Source Code in the Age of YouTube, Facebook and the Arab Spring, 68 N.Y.U. Ann. Surv. Am. L. 319 (2012) By Roig, Jorge R.
  6. Dissecting Ethereum Blockchain Analytics: What We Learn from Topology and Geometry of Ethereum Graph By Yitao Li; Umar Islambekov; Cuneyt Akcora; Ekaterina Smirnova; Yulia R. Gel; Murat Kantarcioglu
  7. Mergers in the digital economy By GAUTIER Axel,; LAMESCH Joe,
  8. Comovement and Instability in Cryptocurrency Markets By De Pace, Pierangelo; Rao, Jayant
  9. Enhancing ICT for Insurance in Africa By Simplice A. Asongu; Nicholas M. Odhiambo
  10. inklusi keuangan By , resista
  11. Sphere By Mielberg, Egger L.
  12. Commoning the smart city: A case for a public Internet provision By Cardullo, Paolo
  14. Contributory Factors to Internet Crimes in Nigeria – A Survey By Gbenga T. Omoniyi; Shahrudin Awang Nor; Nor Iadah Yusop
  15. Hedonic Pricing of Cryptocurrency Tokens By Shorish, Jamsheed
  16. Digital Bank By Mielberg, Egger L.
  17. The Role of Fintech in Mitigating Information Friction in Supply Chain Finance By Lee, Hsiao-Hui; Yang, S. Alex; Kim, Kijin
  18. Commodity Trade Finance Platform using Distributed Ledger Technology: Token Economics in a Closed Ecosystem using Agent Based Modeling By Wang, Jianfu
  19. Sphere Real Money or Electronic Surrogate By Mielberg, Egger L.
  20. Private rental in transition: institutional change, technology and innovation in Australia By Hulse, Kath; Martin, Chris; James, Amity; Stone, Wendy; Hayward, Richard Donald
  21. Sticky Prices and Costly Credit By Liang Wang; Randall Wright; Lucy Qian Liu
  22. The Relationship Between USD/EUR Official Exchange Rates And Implied Exchange Rates From The Bitcoin Market By Hélder Sebastião; Pedro Godinho
  23. Asia Network: An API-based cyberinfrastructure for the flexible topologies of digital humanities research in Sinology By Ho, Hou Ieong; Wang, Sean H.; Belouin, Pascal; Chen, Shih-Pei
  24. Ride-Hailing Services in Germany: Potential Impacts on Public Transport, Motorized Traffic, and Social Welfare By David Ennnen
  25. Neurochain By Mielberg, Egger L.
  26. Digital Marketing Benchmarks Leveraged by Marketing Analytics Tools By Petra Leonora Cvitanović
  27. Contagion in Dealer Networks By Jean-Sébastien Fontaine; Adrian Walton
  28. The Finance Franchise By Hockett, Robert C.; Omarova, Saule T.; Library, Cornell
  29. Matching Platforms By Masaki Aoyagi; Seung Han Yoo
  30. Spatial Distribution of Supply and the Role of Market Thickness: Theory and Evidence from Ride Sharing By Soheil Ghili; Vineet Kumar
  31. Making Friends Meet: Network Formation with Introductions By Jan-Peter Siedlarek
  32. Smart metering projects: an interpretive framework for successful implementation By Di Foggia, Giacomo
  33. Big Data, artificial intelligence and the geography of entrepreneurship in the United States By Obschonka, Martin; Lee, Neil; Rodríguez-Pose, Andrés; Eichstaedt, johannes Christopher; Ebert, Tobias
  34. Collaborative peer production as an alternative to hierarchical internet based business systems By gopal, ganesh; Solanky, Debanjum Singh; Rajamanickam, Govindaraj

  1. By: Raco, Jozef; Raton, Yulius; Taroreh, Frankie; Muaja, Octavianus
    Abstract: The advancement of technology and Smartphone applications offers a lot of opportunities and challenges for companies to increase their market share. Through this technology and its application, companies such as transportation industries can make a lot of money and bring their products and services closer, faster and more easily to customers. In addition the customers can gain access to companies’ services and products on time. On the other hand the advancement of Smartphone technology disrupts the common transportation business practices. Communication and negotiation are becoming more virtual. This technology brings about huge benefits to both customers and companies. However the same technology causes a huge problem especially to other transportation companies as they might lose market if they do not use it. This technology helps many transportation industries to make business innovations such as offering lower prices, faster services and deliveries. This research focuses on transportation companies, specifically motorcycle taxis with online booking, which use a Smartphone application. In Manado Indonesia there are three popular motorcycle taxi online companies that use a Smartphone online application, which are Gojek, Grab and Uber. A lot of people use an online motorcycle taxi rather than public transportation because of its convenience, affordable price, safety and speed compared to local public transport. This study aims to find out the determinant factors that influence people to use motorcycle taxi online services. This research is going to reveal the favorite motorcycle taxi online company and its criteria based on respondents’ perspectives. This paper will use the Analytical Hierarchy Process both for data gathering and data analysis. The research findings will contribute to the local government in formulating laws and policies specifically on motorcycle taxi online service.
    Date: 2018–06–07
  2. By: Francesco Avvisati
    Abstract: Evolving technologies have changed the ways people read and exchange information, whether at home, at school or in the workplace. When PISA assessed 15-year-olds’ reading literacy for the first time, in 2000, only in two countries – Canada and Norway – did more than 50% of the population use the Internet. In 2009, about 15% of students in OECD countries, on average, reported that they did not have access to the Internet at home. By 2018, that proportion had shrunk to less than 5%. The growth in access to online services is likely to be even larger than suggested by these percentages, which hide the exponential growth in the quality of Internet services and the explosion of mobile Internet services over the past decade. In many respects, the challenges that readers encounter today, in a highly digitalised environment, are greater than those encountered in the world of printed books, manuals and newspapers. To navigate successfully the information provided in electronic text formats, people need to use complex strategies to analyse, synthesise, integrate and interpret relevant information from multiple sources when they read. But are students – and education systems – rising to the challenge of mastering reading skills for the digital age?
    Date: 2020–01–28
  3. By: Vuong, Bui Nhat; Hieu, Vo Thi; Trang, Ngo Thi Thuy
    Abstract: Mobile phones with banking technology are becoming more readily available in Vietnam. Similarly, many financial institutions and mobile phone service providers are teaming up to provide several banking services to customers via the mobile phone. However, the number of people who choose to adopt or use such technologies is still relatively low. Therefore, there is a need to assess the acceptance of such technologies to establish factors that hinder or promote customer’s intention to use mobile banking. Survey data collected from 452 consumers was analyzed to provide evidence. Results from the partial least squares structural equation modeling (PLS-SEM) using the SmartPLS 3.0 program indicated that perceived easy to use, perceived credibility, usefulness, attitude, perceived behavioral control and subjective norm are significant with respect to the customer’s intention to use mobile banking services. The results of the data analysis contribute to the body of knowledge by demonstrating that the above factors are critical in intention to use mobile banking in a developing country context. The finding of this study can also help marketers in the banking sector offer more suitable marketing strategies in their field in order to make higher attractiveness with mobile banking services.
    Date: 2019–12–21
  4. By: Marco Gross; Christoph Siebenbrunner
    Abstract: To support the understanding that banks’ debt issuance means money creation, while centralized nonbank financial institutions’ and decentralized bond market intermediary lending does not, the paper aims to convey two related points: First, the notion of money creation as a result of banks’ loan creation is compatible with the notion of liquid funding needs in a multi-bank system, in which liquid fund (reserve) transfers across banks happen naturally. Second, interest rate-based monetary policy has a bearing on macroeconomic dynamics precisely due to that multi-bank structure. It would lose its impact in the hypothetical case that only one (“singular”) commercial bank would exist. We link our discussion to the emergence and design of central bank digital currencies (CBDC), with a special focus on how loans would be granted in a CBDC world.
    Date: 2019–12–20
  5. By: Roig, Jorge R. (Charleston School of Law)
    Abstract: Computer source code is the lifeblood of the Internet. It is also the brick and mortar of cyberspace. As such, it has been argued that the degree of control that a government can wield over code can be a powerful tool for controlling new technologies. With the advent and proliferation in the Internet of social networking media and platforms for the publication and sharing of user-generated content, the ability of individuals across the world to communicate with each other has reached truly revolutionary dimensions. The influence of Facebook in the popular revolutions of the Arab Spring has been well documented. The use of YouTube in the 2008 US Presidential campaign has also left its indelible mark in the political landscape. New platforms have allowed millions of individuals to unleash their artistic and creative potentials. Tools like Google Earth have expanded the ability of entire populations to learn about their surroundings, the world at large, and their places in it. The combination of smartphones and Twitter has created new tactics for protests and redefined the way in which individuals assemble to petition their government for a redress of grievances. The time has come to reconsider the issue of whether computer source code is “speech” for First Amendment purposes, and how the government can regulate it in a manner consistent with First Amendment values. This article proposes a three-step framework for analyzing questions of First Amendment coverage consistent with Supreme Court doctrine. In applying this framework to computer source code, this article also explores the relation between the different values that have been ascribed to the First Amendment, discusses some insights regarding the speech-conduct distinction, and considers the extent of First Amendment coverage in general.
    Date: 2018–01–26
  6. By: Yitao Li; Umar Islambekov; Cuneyt Akcora; Ekaterina Smirnova; Yulia R. Gel; Murat Kantarcioglu
    Abstract: Blockchain technology and, in particular, blockchain-based cryptocurrencies offer us information that has never been seen before in the financial world. In contrast to fiat currencies, all transactions of crypto-currencies and crypto-tokens are permanently recorded on distributed ledgers and are publicly available. As a result, this allows us to construct a transaction graph and to assess not only its organization but to glean relationships between transaction graph properties and crypto price dynamics. The ultimate goal of this paper is to facilitate our understanding on horizons and limitations of what can be learned on crypto-tokens from local topology and geometry of the Ethereum transaction network whose even global network properties remain scarcely explored. By introducing novel tools based on topological data analysis and functional data depth into Blockchain Data Analytics, we show that Ethereum network (one of the most popular blockchains for creating new crypto-tokens) can provide critical insights on price strikes of crypto-tokens that are otherwise largely inaccessible with conventional data sources and traditional analytic methods.
    Date: 2019–12
  7. By: GAUTIER Axel, (Université de Liège, CORE and CESifo); LAMESCH Joe, (Université de Liège)
    Abstract: Over the period 2015-2017, the five giant technologically leading firms, Google, Amazon, Facebook, Amazon and Microsoft (GAFAM) acquired 175 companies, from small start-ups to billion dollar deals. By investigating this intense M&A, this paper ambitions a better understanding of the Big Five’s strategies. To do so, we identify 6 different user groups gravitating around these multi-sided companies along with each company’s most important market segments. We then track their mergers and acquisitions and match them with the segments. This exercise shows that these five firms use M&A activity mostly to strengthen their core market segments but rarely to expand their activities into new ones. Furthermore, most of the acquired products are shut down post acquisition, which suggests that GAFAM mainly acquire firm’s assets (functionality, technology, talent or IP) to integrate them in their ecosystem rather than the products and users themselves. For these tech giants, therefore, acquisition appears to be a substitute for in-house R&D. Finally, from our check for possible «killer acquisitions», it appears that just a single one in our sample could potentially be qualified as such.
    Keywords: mergers, GAFAM, platform, digital markets, competition policy, killer acquisition
    JEL: D43 K21 L40 L86 G34
    Date: 2020–01–01
  8. By: De Pace, Pierangelo (Pomona College); Rao, Jayant (Claremont Graduate University)
    Abstract: We analyze the correlations of daily price returns for nine major cryptocurrencies between April 2013 and November 2018 and estimate their evolution using bivariate and multivariate modelling approaches. We detect pronounced time variation and fid these correlations to be generally increasing between early 2017 and late 2018. We then adopt a right-tail variation of the Augmented Dickey-Fuller unit root test to identify and date-stamp periods of mildly explosive behavior (statistical instability) in the time series of the Network Value to Transactions (NVT) ratio (a measure of the dollar value of cryptocurrency transaction activity relative to its network value) of six cryptocurrencies. We show statistically significant evidence of mild explosiveness in all of them. At the end of 2017 and in 2018, several major cryptocurrencies experience significant (often simultaneous) instability associated with rising NVT ratios. Instability is a steady feature of cryptocurrency markets.
    Keywords: Asset Pricing, Cryptocurrencies, Comovement, Bubbles, Mild Explosiveness
    Date: 2020–01–13
  9. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study assesses how enhancing information and communication technology (ICT) affects life insurance and non-life insurance in a panel of forty-eight African countries with data for the period 2004-2014. The adopted ICT dynamics are: mobile phone penetration, internet penetration and fixed broadband subscriptions. The empirical evidence is based on Generalized Method of Moments. The results show that enhancing mobile phone penetration and fixed broadband subscriptions has a positive net effect on life insurance consumption while enhancing fixed broadband subscriptions also has a positive net impact of on non-life insurance penetration.
    Keywords: Insurance; Information technology
    JEL: I28 I30 L96 O16 O55
    Date: 2019–01
  10. By: , resista
    Abstract: Financial Inclusion is a national development strategy to encourage economic growth through equal distribution of income, poverty alleviation and financial system stability. This community-centered strategy needs to target groups experiencing barriers to accessing financial services. The inclusive financial strategy explicitly targets the groups with the greatest or unfulfilled needs for financial services namely the three categories of people (the poor, low-income, working poor / poor and the near-poor) and three cross-categories (migrant workers, women and underdeveloped regions). By 2019 Indonesia's target on the inclusive public financial index reaches 75%. Inclusive financial ratios have reached 63% of Indonesia's total population by the end of 2017. The government has established five pillars supporting SNKI to achieve the target. First, Financial Education. Second, the concrete Community Property Right has already been in the form of a land certification program. Third, Facilitating Intermediation and Financial Distribution Channels. Fourth, Consumer Protection. Fifth, Financial Services In Government Sector. To achieve an inclusive financial target of 75% by 2019, an additional 51,822,431 adult inclusive residents are required. From the survey results of the Faculty of Economics, University of Indonesia in 5 provinces, 35% of respondents do not have an account at the bank. As many as 32% of Indonesia's adult population has not saving on the basis of the World Bank Survey of Indonesia by the World Bank in 2012. Based on the same survey, 48% of Indonesian adult population save in formal financial institutions. According to World Bank (2011), Indonesian adult residents have accounts at formal financial institutions. The strategy of government, BI, and OJK, nowadays is by optimizing technology services to expand financial products and services to various community groups. An inclusive financial enhancement strategy will also involve civil service and civil registration agencies in various regions to update the data on people who do not have financial products and services. The access program for the financial sector is not only from savings, but also from credit, such as small business credit (KUR) or other small credit, especially digital technology or digitalization must be extended to 4G cellular technology. So for areas that can not signal, its range will be wider. If 4G can reach 50%, then this will help Indonesia's strategy to improve inclusive finance. The purpose of this study is to recommend a model of increasing public financial inclusion through digitizing financial inclusion. The research method is qualitative descriptive, through in depth interview with informant and systematic literature review. Based on the results of research, it is found that in the era of digital economy, the use of technology is one of the strategies that can be applied. Big Data Utilization in Private and Commercial Sector covers Finance field that is investment support, portfolio management, price forecasting, credit. In the field of Banking and Insurance namely credit and policy approval, money laundry detection. While in the field of Finance, Banking and Insurance Security is useful for fraud detection, access control, intrusion detection, virus detection. With digitalization, it is expected that more people can afford affordable financial services. More and more people who can access financial services will improve their lives and reduce poverty.
    Date: 2018–06–05
  11. By: Mielberg, Egger L.
    Abstract: A decentralization of electronic currency would allow business activity and development of a single network to be independent of other different business networks. Cost of a decentralized currency of the network can become stable as long as participants of that network are still active. We propose a solution for such a big problem of traditional economy as a “direct dependency of local prices on global ones”. We also propose an innovative mechanism that allows participants of NCN to get any service of one business network for money (hours) earned in other network (‘s). The currency is implemented by usage of two innovative technologies, “Proof of Participation protocol” (PoP) [3] and “Smart Transactions” [2].
    Date: 2018–04–06
  12. By: Cardullo, Paolo (Innovation Value Institute)
    Abstract: As cities become more involved in data-driven processes of growth and governance, critical scholarship has highlighted the formidable issues around ownership, uses and the ethics of collecting, storing, and circulating such data. However, there has been less focus on the physical infrastructure as the ‘last mile’ problem for Internet access, between a revanchist perspective on the ‘broken Internet’ delivered by digital capitalism and the liberal rhetoric of the Internet as a human right. Through two case studies, the paper plots a pragmatic trajectory in the adoption of the Internet for people and ‘things’, in which city and users take different roles and responsibilities. It highlights benefits and challenges around the long-term sustainability and maintenance of the Internet as an infrastructure of the commons. An attention to ‘commoning’, instead, reveals the exclusionary or enabling practices the smart city might foster. Thus, the paper advocates for the direct involvement of the city and its citizens in maintaining and reproducing connectivity networks in the smart city.
    Date: 2018–09–02
  13. By: Reghunadhan, Ramnath (Indian Institute of Technology Madras)
    Abstract: The phrase "Internet of Things" (IoT) as a conceptual paradigm was introduced by consumer sensor expert and innovator Kevin Aston during a presentation to the company Procter and Gamble (P&G) in 1999. (Marr, 2015) He believes that unlike the twentieth century computers that "were brains without senses," in the twenty-first century,, and can "sense things for themselves." (Gabbai, 2015) The European Union Agency for Network and Information Security (ENISA) describes IoT as an "ecosystem where interconnected devices and services collect, exchange and process data... to adapt dynamically to a context... [and] is [linked]... to cyber-physical systems... [enables]... Smart Infrastructures by enhancing their quality of service provisioning." (ENISA, 2017)
    Date: 2018–04–08
  14. By: Gbenga T. Omoniyi (University Utara Malaysia); Shahrudin Awang Nor (University Utara Malaysia); Nor Iadah Yusop (University Utara Malaysia)
    Abstract: Internet crimes, also known as Cyber-crimes are act punishable by law. Nigeria government, in order to curb excessiveness of Internet crimes enacted different regulatory and prohibitory laws in support of views of some theorists who claimed that social factors increase users’ vulnerability to computer and Internet attacks. Social factors such as security policy severity, security policy certainty, attitude and attachment have little or no significant relationship with the level of Internet crimes in Nigeria; involvement as a social factor has the strongest significant relationship with the level of Internet crimes in Nigeria; this is followed by commitment, belief and knowledge. Internet users can be tricked, conned and sometimes forcefully compelled to compromise and breach security metrics; security metrics are easily breached if users do not understand or employ security mechanism. Presented in this paper is the survey of the contributory factors to Internet crimes in Nigeria. Data used were gathered by questionnaire.
    Keywords: social factors, internet crimes, cyber-crimes, security, questionnaire, Nigeria
    Date: 2019–11
  15. By: Shorish, Jamsheed (Shorish Research)
    Abstract: A cryptocurrency token offers a method of incentivizing behavior in a way that supports trusted interaction (through its blockchain-based infrastructure). It also acts as a multipurpose instrument that may fulfill a variety of roles, such as facilitating digital use cases or acting as a store of value. Understanding how to value such an instrument is complicated by these multiple roles because the relative valuation of one role cannot be disentangled from another role—a token is a ‘bundled’ good. In this work a general pricing model for cryptocurrency tokens is derived, based upon and extending the hedonic pricing framework of Rosen (1974) in a partial equilibrium framework. It is shown that individual roles (or characteristics) of a token may be priced by inverting in a special way the relationship between the token’s aggregate quantity and its provision of characteristics. Interaction between a monopolistic token seller and a representative buyer results in an equilibrium that clears both the aggregate token market and the characteristic market. Particular attention is given to the case in which a token possesses a security role, as this has been a focus of existing discussions regarding the regulation of the cryptocurrency market. JEL Codes: D46, C60.
    Date: 2018–09–23
  16. By: Mielberg, Egger L.
    Abstract: Decentralization of BANK services would allow its users, first, to primarily earn money, second, to extremely reduce document routines, third, to make their activity more transparent and secure. We propose a new concept of BANK, a digital BANK that never can be a bankrupt and has professional skills and degree of activity of its customers as a main capital.
    Date: 2018–04–06
  17. By: Lee, Hsiao-Hui (National Chengchi University); Yang, S. Alex (London Business School); Kim, Kijin (Asian Development Bank)
    Abstract: Micro, small, and medium-sized enterprises in developing countries face severe financing difficulties, especially when trying to expand internationally. “Information friction” is a significant cause of this financing gap. Recent financial technologies (fintech) can improve supply chain finance efficiency. This paper therefore proposes a conceptual and analytical framework to study how fintech can close the financing gap by reducing information friction. We classify fintech into two categories: information processing technology (Type-A) and information collecting technology (Type-B) and find that both help close the financing gap by lowering the probability of misclassification of good firms as bad. Banks’ optimal Type-A investment increases in the bank’s size, profit margin, and the fraction of good firms in the market. They invest in Type-B if and only if the investment is sufficiently small. Due to “double marginalization,” a bank’s optimal fintech investment is lower than a socially optimal level, calling for mechanisms to incentivize or complement banks’ investment in fintech.
    Keywords: artificial intelligence; digitization; fintech; information friction; supply chain finance
    JEL: O14 O24 O31
    Date: 2019–12–11
  18. By: Wang, Jianfu
    Abstract: Distributed Ledger Technology (DLT) creates a decentralized system for trust and transaction validation using executable smart contracts to update information across a distributed database. This type of ecosystem can be applied to Commodity Trade Finance to alleviate critical issues of information asymmetry and the cost of transacting which are the leading causes of the Trade Finance Gap (ie. the lack of supply of capital to meet total trade finance demand). The possibility of scaling up such ecosystems with a number of Institutional Investors and micro small medium enterprises (MSME) would be advantageous, however, it brings up its own set of challenges including the stability of the system design. Agent-based modeling (ABM) is a powerful method to assess the financial ecosystem dynamics. DLT ecosystems model well under ABM, as the agents present a clearly defined taxonomy. In this study, we use ABM to assess the Aquifer Institute Platform - a DLT-based Commodity Trade Finance system, in which a growing number of participating parties is closely related to the circulation of utility tokens and transaction flows. We study the system dynamics of the platform and propose an appropriate setup for different transaction loads.
    Date: 2018–04–02
  19. By: Mielberg, Egger L.
    Abstract: Decentralized nature of Sphere electronic currency introduces several new properties that the traditional one does not have. Here, we shortly review all functions and properties of real (fiat) money and propose new features that belong to Sphere.
    Date: 2018–08–26
  20. By: Hulse, Kath; Martin, Chris; James, Amity; Stone, Wendy; Hayward, Richard Donald (Australian Housing and Urban Research Institute (AHURI))
    Abstract: This study is a comprehensive analysis of the Australian private rental sector and its institutions. It explores the interplay between regulation; organisations and structures; and social norms and practices of prevailing policies. It also explores the impact of innovation and digital technology.
    Date: 2018–04–03
  21. By: Liang Wang (University of Hawaii at Manoa); Randall Wright (University of Wisconsin - Madison, Zhejiang University, and FRB Minneapolis); Lucy Qian Liu (International Monetary Fund)
    Abstract: We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Agents use cash and credit because the former (latter) is subject to the inflation tax (transaction costs). Frictions that make the choice of payment method interesting also imply equilibrium price dispersion. We derive closed- form solutions for money demand, and show how to simultaneously account for the price-change facts, cash-credit shares in micro data, and money-interest correlations in macro data. The effects of inflation on welfare, price dispersion and markups are discussed, as are nonstationary equilibria with dynamics in the price distribution.
    Keywords: Money, Credit, Inflation, Price Dispersion, Sticky Prices
    JEL: E31 E42 E51 E52
    Date: 2020–01
  22. By: Hélder Sebastião (Centre for Business and Economics CeBER and Faculty of Economics, University of Coimbra); Pedro Godinho (Centre for Business and Economics CeBER and Faculty of Economics, University of Coimbra)
    Abstract: We examine the long- and short-run relationships between USD/EUR official rates and implicit exchange rates, through Bitcoin as a currency vehicle, over the period from March 07, 2016 to November 22, 2019. The results show that the two exchange rates are cointegrated and that the cointegrating vector is not statistically different from the theoretical one that results from the law of one price. In the short-run, the implied rate Granger-causes the official reference rate. Our main conclusion is that Bitcoin USD and EUR prices incorporate fundamental information from the USD/EUR official exchange rate.
    Keywords: Bitcoin, USD/EUR, Exchange rates, Cointegration, Forecasting.
    JEL: G14 G15 G23
    Date: 2020–02
  23. By: Ho, Hou Ieong; Wang, Sean H.; Belouin, Pascal; Chen, Shih-Pei
    Abstract: Digital humanities (DH) is a burgeoning field of research in Sinology and Asian studies more broadly, and its diversity and maturity necessitate a cyberinfrastructure fit for DH-focused Sinologists’ specific needs. “Asia Network” is our solution. It is a pioneering approach for resource dissemination and emerging data analytics (such as text mining and other fair-use, consumptive research techniques) in the humanities. It is a language-agnostic software that facilitates the secure linkage between third-party research tools to different third-party textual collections (both licensed and open-access ones) via application programming interfaces (APIs). It revolutionizes how scholars can work with textual sources by promoting a flexible, networked approach to e-infrastructure development. Crucially, Asia Network is a loosely-coupled software with flexible topologies; it can enable both federated or centralized linkages, and it can even “disappear” as long as its API standards remain in place to facilitate communications among databases and tools in the back-end. Thus, unlike large-scale infrastructural projects, Asia Network actively lowers the profile of centralized infrastructure and instead promotes existing tools and resources by enabling their interoperability. As a result, it allows scholars to fully leverage the potential of material digitization and digital research tools without re-creating silos of resources in the digital realm.
    Date: 2018–06–15
  24. By: David Ennnen (Institute of Transport Economics, Muenster)
    Abstract: In the policy debate on ride-hailing services such as Uber, the impacts on traffic, emissions, and public transport are hotly discussed. The regulatory framework in Germany has so far prevented a widespread entry of ride-hailing providers. In this paper, we use a mode choice model and trip data to determine the likely impacts of ride-hailing services for a representative region in Germany. We find that the significantly lower fares compared to taxis lead to strong substitution of public transport, cycling, and walking. As a consequence, motorized traffic increases, despite the pooling of individual rides by ride-hailing providers. However, the total impact on mode choice and traffic remains modest, and a widespread displacement of public transport is not to be expected. The final welfare analysis shows that the emergence of ride-hailing services is beneficial for society as a whole. In particular, the benefits from lower fares exceed the external costs arising from additional motorized traffic.
    Keywords: Ride-hailing, Transportation Network Company, TNC, Taxi, Regulation, Germany
    JEL: L92 L98
    Date: 2020–01
  25. By: Mielberg, Egger L.
    Abstract: In a system where there are tons of information of different types it is always hard and frequently impossible to tie the effect to the cause. There is also a challenge to find relevant data quickly, especially in case of absence of classification algorithm that is capable of working with different fields of business and science in parallel. We propose a mechanism for building a network of associative chains that are decentralized to each other. The network allows its participants to build quickly an associative chain from “effect-to-cause”. This feature of the network is extremely useful for identification of a scam activity. The mechanism is based on two technologies, “Smart Transactions” [1] and “Proof of Participation Protocol” [2].
    Date: 2018–09–16
  26. By: Petra Leonora Cvitanović
    Abstract: The aim of this paper is to provide a structured overview of several useful marketing analytics tools and guidance in creation of company’s own digital marketing dashboard and benchmarks. These tools display in a clear and creative manner the trends and dynamics of the numbers (budgets, costs, investment), the percentages (shares, ratios), as well as various statistical data, rankings and KPIs. By exploiting the data from marketing analytics tools, the entire business of a company can be leveraged. Ideally, the data should be regularly monitored and benchmarked to relevant criteria and business results of the industry leaders. If some benchmarks are not available within a marketing analytics tool, a company can develop own benchmarking system and scales based on own database. Then it would be able to personalize such dashboards to great extent – to reflect own product assortment, lines of business, digital capabilities of own B2B partners, and allow scores comparison through markets and through time (MoM / YoY trends and dynamics). By combining external and internal analytics tools, a company can achieve insights of greater value in relation to its core-business, products / services and its digital marketing strategy. This paper covers detailed review of digital marketing metrics within the selected tools, by also mentioning the major advantages and disadvantages of each tool. The paper also discusses development of internal digital marketing standards, ranking scales and benchmarking criteria which can support decision-making in digital marketing practice, and it also addresses the probable direction of future development of marketing analytics tools in general.
    Keywords: digital marketing analytics tools, data-driven marketing, marketing dashboards, digital marketing benchmarks, digital marketing metrics
    JEL: M31
    Date: 2020–01–10
  27. By: Jean-Sébastien Fontaine; Adrian Walton
    Abstract: Dealers connect investors who want to buy or sell securities in financial markets. Over time, dealers and investors form trading networks to save time and resources. An emerging field of research investigates how networks form. Using detailed data on trades in Government of Canada bonds, we reconstruct dealer networks and document how they respond to the release of relevant economic information. On one hand, we find that networks handle larger volumes of transactions and become more complex. On the other hand, we document more frequent and more severe contagion of settlement fails across dealer networks following these information releases. Settlement fails are unexpected delays in a buyer receiving bonds from a seller, creating counterparty risk and potential disruption to trading. Our findings suggest a trade-off. Large, complex dealer networks effectively connect investors but are also associated with contagion and an increase in counterparty risk due to settlement fails. One way to simplify dealer networks is through a central counterparty (CCP). A CCP reduces settlement volume, making fails less likely.
    Keywords: Financial markets; Market structure and pricing; Payment clearing and settlement systems
    JEL: E4 G1 G21 L14
    Date: 2020–01
  28. By: Hockett, Robert C.; Omarova, Saule T.; Library, Cornell
    Abstract: 102 Cornell Law Review 1143 (2017) The dominant view of banks and other financial institutions is that they function primarily as intermediaries, managing flows of scarce funds from those who have accumulated them to those who have need of them and can pay for their use. This understanding pervades textbooks, scholarly writings, and policy discussions – yet it is fundamentally false as a description of how a modern financial system works. Finance today is no more primarily “intermediated” than it is pre-accumulated or scarce. This Article challenges the outdated narrative of finance as intermediated scarce private capital and maps the basic structure and dynamics of the financial system as it actually operates. We begin by developing a three-part taxonomy of ways to model financial flows – what we call the “credit-intermediation,” “credit-multiplication,” and “credit-generation” models of finance. We show that only the last model captures the core dynamic of a complex modern financial system, and that the ultimate source of credit-generation in any such system is the sovereign public, acting primarily through its central bank and treasury. We then trace the operation of this dynamic throughout the financial system, from the banking sector, through the capital and “shadow banking” markets, all the way out to the “disruptive” frontier of peer-to-peer digital finance. What emerges from this retracing of the financial system’s operative logic is a comprehensive view of modern finance as a public-private franchise arrangement. On this view, the sovereign public acts effectively as franchisor, licensing private financial institutions to earn rents as franchisees in dispensing a vital public resource: the public’s monetized full faith and credit. We conclude the Article by drawing out some of the potentially transformative analytic and normative implications of a paradigmatic shift from the orthodox theory of financial intermediation to the franchise view of finance.
    Date: 2018–01–11
  29. By: Masaki Aoyagi; Seung Han Yoo
    Abstract: A platform matches agents from two sides of a market to create a trading opportunity between them. The agents subscribe to the platform by paying subscription fees which are contingent on their reported private types, and then engage in strategic interactions with their matched partner(s). A matching mechanism of the platform specifies the subscription fees as well as the matching rule which determines the probability that each type of agent on one side is matched with each type on the other side. We characterize optimal matching mechanisms which induce truthful reporting from the agents and maximize the subscription revenue. We show that the optimal mechanisms for a one-to-one trading platform match do not necessarily entail assortative matching, and may employ an alternative matching rule that maximizes the extraction of informational rents of the higher type. We then study an auction platform that matches each seller to two agents, and show that the optimal mechanism entails the combination of negative and positive assortative matching.
    Date: 2019–12
  30. By: Soheil Ghili (Cowles Foundation & School of Management, Yale University); Vineet Kumar (School of Management, Yale University)
    Abstract: This paper develops a strategy with simple implementation and limited data requirements to identify spatial distortion of supply from demand -or, equivalently, unequal access to supply among regions- in transportation markets. We apply our method to ride-level, multi-platform data from New York City (NYC) and show that for smaller rideshare platforms, supply tends to be disproportionately concentrated in more densely populated areas. We also develop a theoretical model to argue that a smaller platform size, all else being equal, distorts the supply of drivers toward more densely populated areas due to network effects. Motivated by this, we estimate a minimum required platform size to avoid geographical supply distortions, which informs the current policy debate in NYC around whether ridesharing platforms should be downsized. We nd the minimum required size to be approximately 3.5M rides/month for NYC, implying that downsizing Lyft or Via-but not Uber{can increase geographical inequity.
    Keywords: Spatial Markets, Transportation, Geographical Inequity, Market Thickness, Ridesharing
    JEL: L13 R41 D62
    Date: 2020–01
  31. By: Jan-Peter Siedlarek
    Abstract: High levels of clustering—the tendency for two nodes in a network to share a neighbor—are ubiquitous in economic and social networks across different applications. In addition, many real-world networks show high payoffs for nodes that connect otherwise separate network regions, representing rewards for filling “structural holes” in the sense of Burt (1992) and keeping distances in networks short. This paper proposes a parsimonious model of network formation with introductions and intermediation rents that can explain both these features. Introductions make it cheaper to create connections that share a common node. They are subject to a tradeoff between gains from shorter connections with lower search cost and losses from lower intermediation rents for the central node. Stable networks are shown to have high levels of clustering at the same time that they permit substantial intermediation rents for nodes bridging structural holes.
    Keywords: networks; network formation; clustering; intermediation; introductions
    JEL: A14 D85
    Date: 2020–01–15
  32. By: Di Foggia, Giacomo
    Abstract: Purpose. We analyze a set of smart meters implementation projects and provide insights and recommendations to facilitate smart metering deployment strategies. Design/methodology/approach. Several significant projects are analyzed on different fronts: scale, technology, economics, and regulation using a common methodology to unfold patterns that constitute key components of successful smart meters diffusion. Findings. Key elements and controllable enabling patterns from Europe-wide SM implementation projects are identified together with drivers and barriers for patterns replication. Practical implications. We provide a framework considering different stakeholders that will help distribution system operators to accelerate and extend smart meters’ penetration. Originality/value. Based on the Meter-ON project (supported by the 7th Framework Program of the European Commission) we put valuable information on the same basis for comparison purposes to facilitate the large-scale deployment of smart meters in Europe.
    Date: 2018–09–01
  33. By: Obschonka, Martin; Lee, Neil; Rodríguez-Pose, Andrés; Eichstaedt, johannes Christopher; Ebert, Tobias
    Abstract: There is increasing interest in the potential of artificial intelligence and Big Data (e.g., generated via social media) to help understand economic outcomes and processes. But can artificial intelligence models, solely based on publicly available Big Data (e.g., language patterns left on social media), reliably identify geographical differences in entrepreneurial personality/culture that are associated with entrepreneurial activity? Using a machine learning model processing 1.5 billion tweets by 5.25 million users, we estimate the Big Five personality traits and an entrepreneurial personality profile for 1,772 U.S. counties. We find that these Twitter-based personality estimates show substantial relationships to county-level entrepreneurship activity, accounting for 20% (entrepreneurial personality profile) and 32% (all Big Five trait as separate predictors in one model) of the variance in local entrepreneurship and are robust to the introduction in the model of conventional economic factors that affect entrepreneurship. We conclude that artificial intelligence methods, analysing publically available social media data, are indeed able to detect entrepreneurial patterns, by measuring territorial differences in entrepreneurial personality/culture that are valid markers of actual entrepreneurial behaviour. More importantly, such social media datasets and artificial intelligence methods are able to deliver similar (or even better) results than studies based on millions of personality tests (self-report studies). Our findings have a wide range of implications for research and practice concerned with entrepreneurial regions and eco-systems, and regional economic outcomes interacting with local culture.
    Date: 2018–05–24
  34. By: gopal, ganesh; Solanky, Debanjum Singh; Rajamanickam, Govindaraj
    Abstract: As we move towards more data intensive, device centric global communication networks, our ability to usefully harvest these large datastores is degrading. The widening asym-metry in the explosive growth of data versus our ability to use it, is forcing us towards centralized analytics. This splintered concentration of data further consolidates analytical capabilities in the hands of the few and divides the network into the analysors and the analysed. The fracturing of the system into opaque datastores and analytics blocks creates a strong positive feedback loop and has a significant negative impact on the stability, transparency and freedom of the network. This paper attempted to identify problems associated with the internet, internet dependent business models and reviewing available solutions and discuss possible solutions which became necessary.
    Date: 2018–02–20

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