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on Payment Systems and Financial Technology |
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Issue of 2021‒05‒24
33 papers chosen by |
| By: | Markus Brunnermeier; Harold James; Jean-Pierre Landau |
| Abstract: | The ongoing digital revolution may lead to a radical departure from the traditional model of monetary exchange. We may see an unbundling of the separate roles of money, creating fiercer competition among specialized currencies. On the other hand, digital currencies associated with large platform ecosystems may lead to a re-bundling of money in which payment services are packaged with an array of data services, encouraging differentiation but discouraging interoperability between platforms. Digital currencies may also cause an upheaval of the international monetary system: countries that are socially or digitally integrated with their neighbors may face digital dollarization, and the prevalence of systemically important platforms could lead to the emergence of digital currency areas that transcend national borders. Central bank digital currency (CBDC) ensures that public money remains a relevant unit of account. |
| Keywords: | digital money, digital currency area, digital dollarization, currency competition |
| JEL: | E42 E52 F33 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:941&r= |
| By: | Agur, Itai; Ari, Anil; DellAriccia, Giovanni |
| Abstract: | We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC, and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of a payment instrument depend on the number of its users. A CBDC can be designed with attributes similar to cash or deposits, and can be interest bearing: a CBDC that closely competes with deposits depresses bank credit and output, while a cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades of bank intermediation against the social value of maintaining diverse payment instruments. When network effects matter, an interest-bearing CBDC alleviates the central bank's tradeoffs. |
| Keywords: | CBDC; digital currency; Financial Intermediation; Fintech; network effects |
| JEL: | E41 E58 G21 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15366&r= |
| By: | Cecchetti, Stephen G; Schoenholtz, Kermit |
| Abstract: | Technology has long had a profound impact on financial services. Today, it is changing the range of services offered, as well as their delivery, cost, and accessibility. Yet, despite the explosion of small firms applying new technologies, very few of these new fintech companies have a broad influence on financial activity. Even in some sectors with significant entry, unit costs of financial intermediation remain stubbornly high. At the same time, there are notable fintech successes, especially in the provision of payments and credit in China. Going forward, the impact of fintech is likely to be greatest where existing suppliers lack competitive incentives or sophistication. Over the next decade, the decisions of regulators will have a profound influence on the array of financial services available, on how they are delivered and to whom. In the advanced economies, regulators generally support greater fintech competition, favoring lower costs and improved access. Furthermore, as Big Tech firms and large incumbent financial institutions vie for dominance, their large fintech investments will make them increasingly alike. Over time, it is anyone's guess which of these firm types will win the race. |
| Keywords: | big tech; Central bank digital currency; digital currency; financial innovation; financial institutions; financial regulation; Financial Services; Fintech; peer-to-peer lending; Remittances |
| JEL: | G20 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15352&r= |
| By: | Ojo/Roedl, Marianne |
| Abstract: | In enhancing the role of innovative techniques which involve the use of distributed ledger technology platforms, consequences or implications of such techniques could initially focus on more obvious risks – such as those risks associated with financial stability, inadequate governance and control mechanisms in place, or cybercrime. However, consideration of climate risk related factors have increasingly made the aim of focus towards a sustainable future, a more popular and increasingly justified topic. In a recent report by the European Environmental Agency, it was highlighted that “ in comparison with alternative payment methods, Bitcoin was claimed to be 20,000 times more energy intensive than Visa – with an energy consumption for each Bitcoin transaction increasing to 635 kWh – an equivalent of electricity that could power approximately 21 US households for 1 day, based on 2019 estimates according to some analysts.” However there are also potential benefits to be derived from blockchain technology - one of which includes environmental protection, as further highlighted in the report. Notwithstanding, efforts and endeavors will still be required to address climate related impacts of engaging the use of such technologies. This paper will focus on other risks – as well as benefits to be derived through the use of innovative techniques such as smart contracts and decentralized finance in a rapidly evolving financial landscape. It will also highlight why central bankers and financial regulation have to adapt and evolve rapidly in engaging the use of supervisory techniques which will not only enhance the efficiency of the use of such innovative techniques but also facilitate an adequate and well balanced approached to regulation – one which whilst not overly regulating technology, seeks to ensure that the abuse or misuse of such technologies are appropriately regulated. |
| Keywords: | distributed ledger technologies; block chains; smart contracts, decentralized finance; central banks; embedded regulation; legal; technical codes |
| JEL: | F3 F6 G1 G2 G3 K2 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107717&r= |
| By: | Auer, Raphael; Cornelli, Giulio; Frost, Jon |
| Abstract: | Central bank digital currencies (CBDCs) are receiving more attention than ever before. Yet the motivations for issuance vary across countries, as do the policy approaches and technical designs. We investigate the economic and institutional drivers of CBDC development and take stock of design efforts. We set out a comprehensive database of technical approaches and policy stances on issuance, relying on central bank speeches and technical reports. Most projects are found in digitised economies with a high capacity for innovation. Work on retail CBDCs is more advanced where the informal economy is larger. We next take stock of the technical design options. More and more central banks are considering retail CBDC architectures in which the CBDC is a direct cash-like claim on the central bank, but where the private sector handles all customer-facing activity. We conclude with an in-depth description of three distinct CBDC approaches by the central banks of China, Sweden and Canada. |
| Keywords: | CBDC; Central bank digital currency; central banks; digital currency; distributed ledger technology; international payments; monetary policy; Payments; technology |
| JEL: | E42 E44 E51 F31 G21 G28 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15363&r= |
| By: | Cornelli, Giulio; Frost, Jon; Gambacorta, Leonardo; Rau, Raghavendra; Wardrop, Robert; Ziegler, Tania |
| Abstract: | Fintech and big tech platforms have expanded their lending around the world. We estimate that the flow of these new forms of credit reached USD 223 billion and USD 572 billion in 2019, respectively. China, the United States and the United Kingdom are the largest markets for fintech credit. Big tech credit is growing fast in China, Japan, Korea, Southeast Asia and some countries in Africa and Latin America. Cross-country panel regressions show that such lending is more developed in countries with higher GDP per capita (at a declining rate), where banking sector mark-ups are higher and where banking regulation is less stringent. Fintech credit is larger where there are fewer bank branches per capita. We also find that fintech and big tech credit are more developed where the ease of doing business is greater, and investor protection disclosure and the efficiency of the judicial system are more advanced, the bank credit-to-deposit ratio is lower and where bond and equity markets are more developed. Overall, alternative credit seems to complement other forms of credit, rather than substitute for them. |
| Keywords: | big tech; credit; data; digital innovation; Fintech; technology |
| JEL: | E51 G23 O31 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15357&r= |
| By: | Asongu, Simplice A; Odhiambo, Nicholas M |
| Abstract: | This study complements the extant literature by assessing how enhancing supply factors of mobile technologies affect mobile money innovations for financial inclusion in developing countries. The mobile money innovation outcome variables are: mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money. The mobile technology supply factors are: unique mobile subscription rate, mobile connectivity performance, mobile connectivity coverage and telecommunications (telecom) sector regulation. The empirical evidence is based on quadratic Tobit regressions and the following findings are established. There are Kuznets or inverted shaped nexuses between three of the four supply factors and mobile money innovations from which thresholds for complementary policies are provided as follows: (i) Unique adults? mobile subscription rates of 128.500%, 121.500% and 77.750% for mobile money accounts, the mobile used to send money and the mobile used to receive money, respectively; (ii) the average share of the population covered by 2G, 3G and 4G mobile data networks of 61.250% and 51.833% for the mobile used to send money and the mobile used to receive money, respectively; and (iii) a telecom sector regulation index of 0.409, 0.283 and 0.283 for mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money, respectively. Some complementary policies are discussed, because at the attendant thresholds, the engaged supply factors of mobile money technologies become necessary, but not sufficient conditions of mobile money innovations for financial inclusion. |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:27333&r= |
| By: | Shigenori Shiratsuka (Faculty of Economics, Keio University) |
| Abstract: | Central bank digital currencies (CBDCs) are digital payment instruments provided by a central bank as its direct liability, denominated in the sovereign currency. CBDCs are classified into two main variants: "wholesale" CBDCs for limited counterparties mainly used in large-value payments between financial institutions, and "general purpose" CBDCs for a wide range of end-users, such as households and businesses. General purpose CBDCs are regarded as a payment device with high substitutability with both banknotes and bank deposits, as a key financial system infrastructure to enhance the efficiency and functioning of the payment services. General purpose CBDCs can be designed to enhance the separability between payment services and financial intermediation services. General purpose CBDCs are expected to play a key role in revitalizing the financial system by promoting market-based financial intermediation services while securing the stability of the payment system. To that end, the overall design of financial system infrastructures, such as access to central bank services, deposit insurance system, and wholesale payment and settlement system, needs to be comprehensively transformed with due consideration on the feature of financial systems, which is the strong status quo bias due to high degree of institutional complementarity. |
| Keywords: | Nonmarket valuation, Central bank digital currency, Financial system, payment services, financial intermediation services, institutional complementarity |
| JEL: | E40 E42 E58 G20 G21 G28 |
| Date: | 2021–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2021-010&r= |
| By: | Pietro Tiberi (Bank of Italy) |
| Abstract: | Reducing the environmental impact of human activities has become a strategic objective of governments, institutions, companies and individuals. In this paper, we estimate the CO2 equivalent emissions of the TARGET Instant Payment Settlement (TIPS) system and compare it with that of Bitcoin and other infrastructures. The TIPS carbon footprint in 2019 was almost 40,000 times smaller than that of Bitcoin; the difference is only partially accounted for by the lower overall volume of TIPS transactions, as the marginal increase in emissions per additional transaction is very small: the difference would therefore persist even if TIPS worked at full steam. The huge discrepancy in the carbon footprints of TIPS and Bitcoin stems from the fact that the latter uses a large amount of energy to generate trust and consensus among Bitcoin network participants, whereas in the case of TIPS this trust is provided by the Eurosystem. The comparison is then extended, using publicly available data, to other infrastructures. The over-performance of TIPS, while less marked than in the case of Bitcoin, remains nevertheless considerable. |
| Keywords: | TIPS, Carbon footprint, Bitcoin |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wpmisp:mip_005_21&r= |
| By: | Brühl, Volker |
| Abstract: | Die Distributed Ledger- bzw. Blockchain-Technologie führt zu einer zunehmenden Dezentralisierung von Finanzdienstleistungen ("Decentralised Finance"), die weitgehend ohne die Einschaltung von Finanzintermediären angeboten werden können. Dazu trägt wesentlich die sog. "Tokenisierung" von Vermögensgegenständen, Zahlungsmitteln und Rechten bei, die verschlüsselt als "Kryptowerte" in verteilten Transaktionsregistern digital abgebildet werden können. Der vorliegende Beitrag erläutert die Grundlagen und Anwendungsfelder dezentraler Finanzdienstleistungen mit Kryptowerten, die mittelfristig die gesamte Architektur des Finanzsektors verändern könnten. Dieser Trend betrifft längst nicht nur die kontrovers diskutierten Zahlungsverkehrssysteme mit Kryptowährungen wie dem Bitcoin, sondern Handelsplattformen, Kapitalmärkte oder Unternehmensfinanzierungen. Es bildet sich ein rasch wachsendes Ökosystem aus Startups, Technologieunternehmen und etablierten Finanzdienstleistern, für das jedoch noch ein verlässlicher regulatorischer Rahmen fehlt. Die derzeit auf europäischer Ebene diskutierte Initiative "MiCA (Markets in Crypto Assets)" geht in die richtige Richtung, sollte aber im Interesse der Wettbewerbsfähigkeit des europäischen Finanzsektors zeitnah umgesetzt werden. |
| JEL: | G10 G20 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:655&r= |
| By: | Böser, Florian; Gersbach, Hans |
| Abstract: | We examine how the introduction of an interest-bearing central bank digital currency (CBDC) impacts bank activities and monetary policy. Depositors can switch from bank deposits to CBDC as a safe medium of exchange at any time. As banks face digital runs, either because depositors have a preference for CBDC or fear bank insolvency, monetary policy can use collateral requirements (and default penalties) to initially increase bankers' monitoring incentives. This leads to higher aggregate productivity. However, the mass of households holding CBDC will increase over time, causing additional liquidity risk for banks. After a certain period, monetary policy with tight collateral requirements generating liquidity risk for banks and exposing bankers to default penalties would render banking non-viable and prompt the central bank to abandon such policies. Under these circumstances, bankers' monitoring incentives will revert to low levels. Accordingly, a CBDC can at best yield short-term welfare gains. |
| Keywords: | Central bank digital currency - Monetary policy - Banks - Deposits |
| JEL: | E42 E52 E58 G21 G28 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15322&r= |
| By: | Niepelt, Dirk |
| Abstract: | We analyze policy in a two-tiered monetary system. Noncompetitive banks issue deposits while the central bank issues reserves and a retail CBDC. Monies differ with respect to operating costs and liquidity. We map the framework into a baseline business cycle model with "pseudo wedges" and derive optimal policy rules: Spreads satisfy modified Friedman rules and deposits must be taxed or subsidized. We generalize the Brunnermeier and Niepelt (2019) result on the macro irrelevance of CBDC but show that a deposit based payment system requires higher taxes. The model implies annual implicit subsidies to U.S. banks of up to 0.8 percent of GDP during the period 1999-2017. |
| Keywords: | bank profits; Central bank digital currency; deposits; equivalence; Friedman Rule; monetary policy; money creation; Ramsey Policy; Reserves |
| JEL: | E42 E43 E51 E52 G21 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15457&r= |
| By: | Ojo, Marianne |
| Abstract: | What roles exist for public and private partnerships within the context of central bank digital currencies (CBDCs), in an increasingly digitalized global system? Do central bank digital currencies (CBDCs) serve as public goods rather than tools which should primarily remain within the realm and governance of private sector firms? What challenges or risks are presented through the use of CBDCs and how can such risks be mitigated through current existing structures - as well as models which have been propounded in relation to public – private partnerships? This paper aims to contribute to the literature on the topic through a consideration of several variants and models of CBDCs under which the public private partnership would function, namely the synthetic CBDC (sCBDC) and the two-tiered CBDC. Further, two other types of CBDCs, namely the wholesale CBDC and the retail CBDC will be distinguished - as well as the account based CBDC, which is contrasted to CBDCs based on digital tokens. Whilst concerns for privacy and security remain paramount and cannot be undermined, particularly from the perspectives of distributed ledger technologies (and blockchains – through which such platforms operate), such concerns need to be weighed against the need for identification since regulators will be better supported in their goals in enforcing the law, as well as identifying fraudulent operations, where sufficient identification procedures have been put in place |
| Keywords: | CBDCs; synthetic CBDCs; two tiered CBDCs; retail CBDC; distributed ledger technologies; regulation; governance; anti trust ; competition; financial stability |
| JEL: | E58 F2 F64 G3 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:107716&r= |
| By: | Tim Leung; Theodore Zhao |
| Abstract: | We study the price dynamics of cryptocurrencies using adaptive complementary ensemble empirical mode decomposition (ACE-EMD) and Hilbert spectral analysis. This is a multiscale noise-assisted approach that decomposes any time series into a number of intrinsic mode functions, along with the corresponding instantaneous amplitudes and instantaneous frequencies. The decomposition is adaptive to the time-varying volatility of each cryptocurrency price evolution. Different combinations of modes allow us to reconstruct the time series using components of different timescales. We then apply Hilbert spectral analysis to define and compute the instantaneous energy-frequency spectrum of each cryptocurrency to illustrate the properties of various timescales embedded in the original time series. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.08133&r= |
| By: | Ferrari, Massimo; Mehl, Arnaud; Stracca, Livio |
| Abstract: | We examine the open-economy implications of the introduction of a central bank digital currency (CBDC). We add a CBDC to the menu of monetary assets available in a standard two-country DSGE model and consider a broad set of alternative technical features in CBDC design. We analyse the international transmission of standard monetary policy and technology shocks in the presence and absence of a CDBC and the implications for optimal monetary policy and welfare. The presence of a CBDC amplifies the international spillovers of shocks to a significant extent, thereby increasing international linkages. But the magnitude of these effects depends crucially on CBDC design and can be significantly dampened if the CBDC possesses specific technical features. We also show that domestic issuance of a CBDC increases asymmetries in the international monetary system by reducing monetary policy autonomy in foreign economies. |
| Keywords: | Central bank digital currency; DSGE model; international monetary system; open-economy; Optimal monetary policy |
| JEL: | E50 F30 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15335&r= |
| By: | Anneke Kosse |
| Abstract: | The aim of this paper is to examine which payment instruments Canadians use for paying bills and to assess the factors driving their bill payment behaviour. I use 2019 survey data collected among over 4,000 Canadians and estimate a set of binomial and multinomial regressions to assess the factors influencing consumers' use and perception of different bill payment options. I find that there is no single dominant payment method for all consumer groups: demographics, financial situation, new technology adoption and POS payment habits play a significant role in the usage of bill payment methods as well as in consumers' stated reasons and barriers of use. Moreover, I demonstrate that consumers' bill payment behaviour strongly varies by bill type. The conclusions are useful for policy discussions on how to encourage a migration away from paper-based payment methods and how to (re)design a retail payments system to accommodate end-user needs. |
| Keywords: | Bank notes; Econometric and statistical methods; Financial services; Payment clearing and settlement systems |
| JEL: | D9 G2 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:21-23&r= |
| By: | Alejandro Norton (Universidad Nacional de Cuyo); Marcos Herrera-Gomez (Universidad Nacional de Salta/CONICET) |
| Abstract: | Usando información de hospedajes de Airbnb en la Ciudad de Buenos Aires, este trabajo analiza la relación entre las actividades delictivas y los precios de alquiler. El trabajo plantea un modelo hedónico que permite estimar el impacto de daño del delito controlando por otros factores (características del alojamiento y variables contextuales). Los principales aportes del trabajo pueden ser resumidos en tres partes. En primer lugar, se utiliza información geográfica para construir un indicador de daño del delito que pondera los tipos de delitos con respecto al daño producido por los mismos. En segundo lugar, el estudio reconoce el problema de la endogeneidad del delito y provee evidencia robusta sobre el impacto del delito en precios de Airbnb. En tercer lugar, el modelo principal incluye una corrección por dependencia espacial endógena en precios y por heteroscedasticidad espacial en el término de error. Nuestros resultados indican que los precios de los alojamientos son afectados negativamente por la actividad delictiva en el vecindario. |
| Keywords: | Precios Airbnb Índice de Daño del Delito Modelo Hedónico Espacial |
| JEL: | Z30 C21 R32 K14 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:21&r= |
| By: | Grazia Cecere (DEFI - Département Droit, Economie et Finances - IMT - Institut Mines-Télécom [Paris] - TEM - Télécom Ecole de Management - IMT-BS - Institut Mines-Télécom Business School, LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School); Thierry Pénard (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The Covid crisis has accelerated the digitalization of the economy. Many businesses have been forced to reorganize their production and distribution channels. In response to the Covid-related restrictions (curfew, lockdown, etc.), firms have increased their investment in information technology to facilitate video calling, teleworking, or online ordering and payments. New digital businesses such as Zoom have boomed with the pandemic. These digital transformations are an irreversible process which is affecting both high tech and more traditional sectors. [...] |
| Date: | 2020–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03221230&r= |
| By: | Bloch, Francis; Demange, Gabrielle |
| Abstract: | This paper analyzes the strategy of a monopolistic digital platform serving users from two jurisdictions with different corporate tax rates. We consider two profit-splitting rules, Separate Accounting (SA) and Formula Apportionment (FA) based on the number of users in the two jurisdictions. We show that, even in the absence of transfer pricing, the platform shifts profit from the high-tax to the low-tax jurisdiction exploiting network externalities under SA and manipulating the apportionment key under FA. In order to shift profit, the platform distorts prices and quantities. Under SA, the direction of the distortions depends on the sign of the externalities. We use a numerical simulation to show that the ranking of fiscal revenues under the two r\'{e}gimes differ in the two jurisdictions: the high-tax jurisdiction prefers SA to FA whereas the low-tax jurisdiction prefers FA to SA. |
| Keywords: | corporate income taxation; Digital Platforms; Formula Apportionment; multinational firms; Separate accountin |
| JEL: | H25 H32 L12 L14 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15376&r= |
| By: | Fabian Stephany; Otto K\"assi; Uma Rani; Vili Lehdonvirta |
| Abstract: | The Online Labour Index (OLI) was launched in 2016 to measure the global utilisation of online freelance work at scale. Five years after its creation, the OLI has become a point of reference for scholars and policy experts investigating the online gig economy. As the market for online freelancing work matures, a high volume of data and new analytical tools allow us to revisit half a decade of online freelance monitoring and extend the index's scope to more dimensions of the global online freelancing market. In addition to measuring the utilisation of online labour across countries and occupations by tracking the number of projects and tasks posted on major English-language platforms, the new Online Labour Index 2020 (OLI 2020) also tracks Spanish- and Russian-language platforms, reveals changes over time in the geography of labour supply, and estimates female participation in the online gig economy. The rising popularity of software and tech work and the concentration of freelancers on the Indian subcontinent are examples of the insights that the OLI 2020 provides. The OLI 2020 delivers a more detailed picture of the world of online freelancing via an interactive online visualisation updated daily. It provides easy access to downloadable open data for policymakers, labour market researchers, and the general public (www.onlinelabourobservatory.org). |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.09148&r= |
| By: | von Bismarck-Osten, Matthias |
| Abstract: | Over the last seven years, digital agricultural platforms offering a broad range of products and digital services to smallholder farmers have gained a dominant position on the African market. This paper examines the predictions of platform theory using case study evidence from six companies in Sub-Saharan Africa. The platform companies profiled in this paper are DigiFarm, FarmCrowdy, AgroMall, Twiga Foods, Tulaa and AgroCenta. While in theory platforms limit themselves to establishing linkages between user groups, the platform companies profiled in this paper have built vertical structures of control and integration into their business model, albeit to a varying degree. These include the maintenance of a field force that advises and accompanies the farmers, logistics and, above all, the direct sale of the farmers´ produce on the platform company’s own account. Thus, very different platform models are all subsumed under the term ´ digital agricultural platforms ´. With recourse to economic theory on platforms, the paper proposes categories with greater discriminatory power. In addition, it describes how platform companies make key strategic decisions as set out in economic theory. Finally, owing to varying contexts, the paper concludes that there is no silver bullet for the establishment of a digital agricultural platforms. |
| Keywords: | Agribusiness, Agricultural Finance, Farm Management, Marketing, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2021–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubonwp:310984&r= |
| By: | Ivaldi, Marc; Zhang, Jiekai |
| Abstract: | The empirical analysis of media platforms economics has often neglected the multi-homing behaviour of advertisers. Assuming away the cross-substitutability and/or complementarity between the advertising slots of dierent platforms could damage the quality and the robustness of counterfactual analysis. To evaluate the consequence of such an abstraction, we compare the simulation results of hypothetical platform mergers when the demand on the advertising side is derived from a Translog cost model which allows for multi-homing, and when it is approximated by using a simple log-linear inverse demand model that ignores the dierentiation among media platforms' advertising slots. Ignoring the existence of substitutes or complements on the advertising side would result in overpredicting the losses of the viewers' surplus and in underpredicting the gains in platforms' revenues. |
| Keywords: | Two-sided market; platform merger; advertising; TV market; competition policy |
| JEL: | K21 L10 L40 L82 M37 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:125568&r= |
| By: | Dominik Gutt (Erasmus University Rotterdam); Jürgen Neumann (University of Paderborn); Wael Jabr (Pennsylvania State University); Dennis Kundisch (University of Paderborn) |
| Abstract: | Online reviews on digital platforms are essential in building reputation. Existing reviews, however, become less informative for products whose attributes change over time. Digital platforms have explored reputation update mechanisms that adequately reflect this change. One such distinctive mechanism in the context of apps is that reputation, and thus the underlying review history, is reset with the release of a new app update. While this reputation resetting mechanism might have been intended to ensure that an app's reputation always reflects its current characteristics, it results in complete loss of app reputation irrespective of its prior quality. The implications of this loss of reputation on app market performance remains unknown. This is further complicated by settings where app updating and thus reputation resetting may be required by the hosting platform in compliance with its release of a new operating system. Exploiting an instrumental variables approach on a panel data set from the Apple App Store, we find that when reputation resetting is platform-driven, the effects are asymmetrical across reputation levels. Apps with low prior reputation enjoy a sharp increase in demand while those with high prior reputation experience a sharp decline in demand. Further, our results indicate that the effects on high prior reputation apps are longer-lived than those on low prior reputation apps. Interestingly, for developer-driven updates we find symmetrical effects. Hence, our results reveal that the reputation mechanism arguably designed to ensure accurate reputation has benefits but also substantial drawbacks, specifically for the platform's best performing apps. |
| Keywords: | Online Reviews, App Store, Update, Reputation Mechanism, Digital Platform; Online Reviews, App Store, Update, Reputation Mechanism, Digital Platform |
| JEL: | M15 M31 O32 D47 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:pdn:dispap:76&r= |
| By: | Autorité de Contrôle Prudentiel et de Résolution; Banca d’Italia; Commissione Nazionale per le Società e la Borsa; Deutsche Bundesbank; European Central Bank; Federal Reserve Board; Financial Conduct Authority; Ministero dell’Economia e delle Finanze; Prudential Regulation Authority; U.S. Treasury |
| Abstract: | This paper presents the proposal for a common categorisation of malicious cyber incidents (cyber‑attacks) and other information technology (IT) incidents formulated by ten financial authorities that are members of the G‑7 Cyber Expert Group (CEG) and that represent six of the G‑7 jurisdictions. The aim of the proposal is to promote the harmonisation of the various incident reports that authorities require from financial institutions by defining common principles and developing a common taxonomy for incident reporting. The adoption of these common principles and taxonomy should make incident reporting more robust and effective by facilitating a common understanding of incidents, the sharing of information, and the joint management of IT cross‑border crises. |
| Keywords: | it incidents, cyber incidents, operational incidents, taxonomy |
| JEL: | F50 G20 K24 L50 |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wpmisp:mip_006_21&r= |
| By: | A Fronzetti Colladon; B Guardabascio; R Innarella |
| Abstract: | Forecasting tourism demand has important implications for both policy makers and companies operating in the tourism industry. In this research, we applied methods and tools of social network and semantic analysis to study user-generated content retrieved from online communities which interacted on the TripAdvisor travel forum. We analyzed the forums of 7 major European capital cities, over a period of 10 years, collecting more than 2,660,000 posts, written by about 147,000 users. We present a new methodology of analysis of tourism-related big data and a set of variables which could be integrated into traditional forecasting models. We implemented Factor Augmented Autoregressive and Bridge models with social network and semantic variables which often led to a better forecasting performance than univariate models and models based on Google Trend data. Forum language complexity and the centralization of the communication network, i.e. the presence of eminent contributors, were the variables that contributed more to the forecasting of international airport arrivals. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.07727&r= |
| By: | Mohsen Asgari; Hossein Khasteh |
| Abstract: | AI and data driven solutions have been applied to different fields with outperforming and promising results. In this research work we apply k-Nearest Neighbours, eXtreme Gradient Boosting and Random Forest classifiers to direction detection problem of three cryptocurrency markets. Our input data includes price data and technical indicators. We use these classifiers to design a strategy to trade in those markets. Our test results on unseen data shows a great potential for this approach in helping investors with an expert system to exploit the market and gain profit. Our highest gain for an unseen 66 day span is 860 dollars per 1800 dollars investment. We also discuss limitations of these approaches and their potential impact to Efficient Market Hypothesis. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.06827&r= |
| By: | Crampes, Claude; Lefouili, Yassine |
| Abstract: | This paper investigates the trade-offs associated with the digitalization of the energy sector. Arguing that digitalization has both bright and dark sides, we study the extent to which it can help make energy systems efficient and sustainable. We first discuss how digitalization affects the responsiveness of demand, and explore its implications for spot pricing, load shedding, and priority service. In particular, we highlight the conditions under which digital technologies that allow demand to be more responsive to supply are likely to be used. We then turn to the way digitalization can contribute to the decarbonization of the energy sector, and discuss the promises and limitations of artificial intelligence in this area. Finally, we contend that policymakers should pay special attention to the privacy concerns raised by the digitalization of the energy sector and the cyberattacks that it enables. |
| Keywords: | Electricity; dynamic pricing; digitalisation; artificial Intelligence |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:125578&r= |
| By: | Milena Djourelova; Ruben Durante; Gregory J. Martin |
| Abstract: | How does competition from online platforms affect the organization, performance, and editorial choices of newspapers? And what are the implications of these changes for the information vot-ers are exposed to and for political accountability? We study these questions using the staggered introduction of Craigslist - the world’s largest online platform for classified advertising - across US counties between 1995 and 2009. This setting allows us to separate the effect of competition for classified advertising from other changes brought about by the Internet, and to compare newspapers that relied more or less heavily on classified ads ex ante. We find that, following the entry of Craigslist, local papers experienced a significant decline in the number of newsroom and management staff. Cuts in editorial staff disproportionately affected reporters covering politics. These organizational changes led to a reduction in news coverage of politics and political corrup-tion, and resulted in a decline in newspaper readership which was not compensated by increased news consumption on other media. Finally, we find some evidence that reduced news coverage of politics was associated with lower voter turnout, and more party-line voting for both citizens and politicians. |
| Keywords: | newspapers, internet, advertising, political accountability |
| JEL: | L82 L86 D72 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9090&r= |
| By: | Croitor, Evgheni; Werner, Dominick |
| Date: | 2021–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:126518&r= |
| By: | A. Fronzetti Colladon; F. Grippa; R. Innarella |
| Abstract: | This paper explores the association between brand importance and growth in museum visitors. We analyzed 10 years of online forum discussions and applied the Semantic Brand Score (SBS) to assess the brand importance of five European Museums. Our Naive Bayes and regression models indicate that variations in the combined dimensions of the SBS (prevalence, diversity and connectivity) are aligned with changes in museum visitors. Results suggest that, in order to attract more visitors, museum brand managers should focus on increasing the volume of online posting and the richness of information generated by users around the brand, rather than controlling for the posts' overall positivity or negativity. |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2105.07749&r= |
| By: | Monnet, Eric; Velde, François R. |
| Abstract: | We review developments in the history of money, banking, and financial intermediation over the last twenty years. We focus on studies of financial development, including the role of regulation and the history of central banking. We also review the literature of banking and financial crises. This area has been largely unaffected by the so-called new econometric methods that seek to prove causality in reduced form settings. We discuss why historical macroeconomics is less amenable to such methods, discuss the underlying concepts of causality, and emphasize that models remain the backbone of our historical narratives. |
| Keywords: | Banking; Causality; Financial Intermediation; historical macroeconomics; money |
| JEL: | N01 N10 N20 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:15348&r= |
| By: | Javier López González; Silvia Sorescu |
| Abstract: | Today, more parcels are crossing international borders than ever before. While this has given rise to new opportunities, not least for individuals and SMEs who are now more directly engaged in trade, it is also raising new challenges. This paper explores this complex and evolving environment, identifying the types of goods that are traded as parcels and the different actors along the parcels supply chain, as well as the policies to help ensure that parcels get to where they are needed. Empirical analysis shows that progress on digital connectivity and trade facilitation measures, such as increased transparency or automating border processes, are likely to have a greater trade-enhancing impact on parcel trade than on “traditional” trade. In contrast, greater differences in regulations across countries in transportation, courier or logistics services are associated with lower trade in parcels. Overall, enabling benefits from trade in parcels and facing forthcoming challenges requires a comprehensive policy approach across a number of areas and throughout the parcel supply chain. |
| Keywords: | COVID-19, E-commerce, Gravity estimation, Services, SMEs, Trade facilitation |
| JEL: | C54 F13 F68 L10 |
| Date: | 2021–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:249-en&r= |
| By: | Tomaso Duso; Claus Michelsen; Maximilian Schäfer; Kevin Ducbao Tran |
| Abstract: | We exploit two policy interventions in Berlin, Germany, to causally identify the impact of Airbnb on rental markets. While the first intervention significantly reduced the number of high-availability Airbnb listings bookable for most of the year, the second intervention led to the exit of mostly occasional, low-availability listings. We find that the reduction in Airbnb supply has a much larger impact on rents and long-term rental supply for the first reform. This is consistent with more professional Airbnb hosts substituting back to the long-term rental market. Accordingly, we estimate that one additional nearby high-availability Airbnb listing crowds out 0.6 long-term rentals and, consequently, increases the asked square-meter rent by 1.8 percent on average. This marginal effect tends to be smaller in districts with a higher Airbnb density. However, these district experienced a larger slowdown in rent increases following the reform due to larger reductions in Airbnb supply. |
| Keywords: | rents, housing market, short-term rental regulation, sharing economy, Airbnb |
| JEL: | R21 R31 R52 Z30 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9089&r= |