nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2021‒09‒27
24 papers chosen by
Bernardo Bátiz-Lazo
Northumbria University

  1. Distrust or Speculation? The Socioeconomic Drivers of U.S. Cryptocurrency Investments By Raphael A. Auer; David Tercero-Lucas
  2. The Future of Cash By Solomon H. Tarlin
  3. A Bibliometric Analysis of Fintech and Blockchain in Islamic Finance By Aysan, Ahmet Faruk; Unal, Ibrahim Musa
  4. UTXO in Digital Currencies: Account-based or Token-based? Or Both? By Aldar C-F. Chan
  5. Cryptocurrencies and the Future of Money By Matheus R. Grasselli; Alexander Lipton
  6. Who are the arbitrageurs? Empirical evidence from Bitcoin traders in the Mt. Gox exchange platform By Pietro Saggese; Alessandro Belmonte; Nicola Dimitri; Angelo Facchini; Rainer Böhme
  7. More than ten years of Blockchain creation: How did we use the technology and which direction is the research heading? By Khalid Ahmed Al-Ansari; Ahmet Aysan
  8. Antecedents of Customer Loyalty (CL) in the Mobile Telecommunication Companies in Cameroon By Marymagdaline E. Tarkang; Ruth N. Yunji; Simplice A. Asongu; Uju V. Alola
  9. Flagship Entry in Online Marketplaces By Ginger Zhe Jin; Zhentong Lu; Xiaolu Zhou; Lu Fang
  10. The Mobile Phone in Governance for Environmental Sustainability in Sub-Saharan Africa By Simplice A. Asongu; Rexon T. Nting
  11. Platform companies: features of the business model and corporate governance By Polezhaeva Natalia
  12. The Mobile Phone Technology, Gender Inclusive Education and Public Accountability in Sub-Saharan Africa By Asongu, Simplice; Adegboye, Alex; Ejemeyovwi, Jeremiah; Umukoro, Olaoluwa
  13. Fast forward digital: A new kind of university By Vervest, P.H.M.
  14. Social representations of money : contrast between citizens and local complementary currency members By Ariane Tichit
  15. Evaluation of Dynamic Cointegration-Based Pairs Trading Strategy in the Cryptocurrency Market By Masood Tadi; Irina Kortchmeski
  16. Digitalisation: channels, impacts and implications for monetary policy in the euro area By Consolo, Agostino; Cette, Gilbert; Bergeaud, Antonin; Labhard, Vincent; Osbat, Chiara; Kosekova, Stanimira; Anyfantaki, Sofia; Basso, Gaetano; Basso, Henrique; Bobeica, Elena; Ciapanna, Emanuela; Dedola, Luca; Foroni, Claudia; Freystatter, Hanna; Gautier, Erwan; Giron, Celestino; Hartwig, Benny; Peinado, Mario Izquierdo; Jarvis, Valerie; Maqui, Eduardo; Mohr, Matthias; Morris, Richard; Motyovszki, Gergő; Nakov, Anton; Petroulakis, Filippos; Rubene, Ieva; Trezzi, Riccardo; Vivian, Lara; Weber, Henning; Wieland, Elisabeth; Neves, Pedro
  17. Nowcasting Norwegian household consumption with debit card transaction data By Knut Are Aastveit; Tuva Marie Fastbø; Eleonora Granziera; Kenneth Sæterhagen Paulsen; Kjersti Næss Torstensen
  18. Estimating Demand with Multi-Homing in Two-Sided Markets By Affeldt, P.; Argentesi, E.; Filistrucchi, Lapo
  19. Signaling in Online Credit Markets By Kei Kawai; Ken Onishi; Kosuke Uetake
  20. Geographical-Proximity Bias in P2B Crowdlending Strategies By Carole Gresse; Hugo Marin
  21. Nowcasting aggregate services trade By Alexander Jaax; Frédéric Gonzales; Annabelle Mourougane
  22. Financing online project: willingness-to-pay for an ad-free Wikipedia By Myriam Le Goff-Pronost; Nicolas Jullien; Godefroy Dang Nguyen
  23. China’s Mergers & Acquisitions Activity in the United States – The Case of TikTok By Tamás Peragovics
  24. Remittances, Natural Resource Rent and Economic Growth in Sub-Saharan Africa By Ofori, Pamela Efua; Grechyna, Daryna

  1. By: Raphael A. Auer; David Tercero-Lucas
    Abstract: Employing representative data from the U.S. Survey of Consumer Payment Choice, we disprove the hypothesis that cryptocurrency investors are motivated by distrust in fiat currencies or regulated finance. Compared with the general population, investors show no differences in their level of security concerns with either cash or commercial banking services. We find that cryptocurrency investors tend to be educated, young and digital natives. In recent years, a gap in ownership of cryptocurrencies across genders has emerged. We examine how investor characteristics vary across cryptocurrencies and show that owners of cryptocurrencies increasingly tend to hold their investment for longer periods.
    Keywords: digital currencies, cryptocurrencies, distributed ledger technology, blockchain, payments, digitalisation, banking, household finance, money, bitcoin, ether, xrp, bitcoin cash, litecoin, stellar, eos
    JEL: D14 D91 E42 G11 G12 G28 O33
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9287&r=
  2. By: Solomon H. Tarlin
    Abstract: In many advanced economies around the world, the share of transactions conducted using cash payments has been falling over the past several years. This change has likely been because of a combination of shifting consumer tastes, improvements in payment technology (specifically credit and debit cards), and the rapid growth of online transactions. As the decline in the cash share has led to some businesses choosing not to accept cash payments, many policymakers have discussed interventions to ensure access to the modern economy for consumers who prefer to pay in cash. Despite the reduced use of cash as a means of payment, currency in circulation has continued to increase in many countries, including the United States. This increase suggests that cash is still providing utility as a store of value. This paper surveys literature and data on the use of cash as a means of payment and discusses how and why the cash share is falling in the United States and around the world. Furthermore, it also discusses the opportunities and challenges of a transition away from cash for consumers, businesses, and society.
    Keywords: cashless society; cash payments; electronic payments
    JEL: E42 G20 G21
    Date: 2021–09–13
    URL: http://d.repec.org/n?u=RePEc:fip:fedpcd:93058&r=
  3. By: Aysan, Ahmet Faruk; Unal, Ibrahim Musa
    Abstract: This paper conducts a bibliometric research in the literature on Fintech and Islamic finance. The data of this study consists of relevant articles obtained from the Scopus database as of February 2021. A keywords bundle related to Islamic finance and keyword has been used for the search, resulting in 89 publishments included in this research. Results show the stunning increase in the Islamic Fintech publishments after 2017, mainly in the fields of cryptocurrencies, micro-finance, impact investing, and SRI investing, and so on. The two main centers of Islamic Fintech research are Malaysia-Indonesia Region and the GCC area. The increasing number of Islamic Fintech publishments show the potential of the field for the industry's future.
    Keywords: Fintech, Islamic, bibliometric, blockchain, cryptocurrency
    JEL: G20
    Date: 2021–09–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:109712&r=
  4. By: Aldar C-F. Chan
    Abstract: There are different interpretations of the terms "tokens" and "token-based systems" in the literature around blockchain and digital currencies although the distinction between token-based and account-based systems is well entrenched in economics. Despite the wide use of the terminologies of tokens and tokenisation in the cryptocurrency community, the underlying concept sometimes does not square well with the economic notions, or is even contrary to them. The UTXO design of Bitcoin exhibits partially characteristics of a token-based system and partially characteristics of an account-based system. A discussion on the difficulty to implement the economic notion of tokens in the digital domain, along with an exposition of the design of UTXO, is given in order to discuss why UTXO-based systems should be viewed as account-based according to the classical economic notion. Besides, a detailed comparison between UTXO-based systems and account-based systems is presented. Using the data structure of the system state representation as the defining feature to distinguish digital token-based and account-based systems is therefore suggested. This extended definition of token-based systems covers both physical and digital tokens while neatly distinguishing token-based and account-based systems.
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2109.09294&r=
  5. By: Matheus R. Grasselli; Alexander Lipton
    Abstract: We review different classes of cryptocurrencies with emphasis on their economic properties. Pure-asset coins such as Bitcoin, Ethereum and Ripple are characterized by not being a liability of any economic agent and most resemble commodities such as gold. Central bank digital currencies, at the other end of the economic spectrum, are liabilities of a Central Bank and most resemble cash. In between, there exist a range of so-called stable coins, with varying degrees of economic complexity. We use balance sheet operations to highlight the properties of each class of cryptocurrency and their potential uses. In addition, we propose the basic structure for a macroeconomic model incorporating all the different types of cryptocurrencies under consideration.
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2109.10177&r=
  6. By: Pietro Saggese; Alessandro Belmonte; Nicola Dimitri; Angelo Facchini; Rainer Böhme
    Abstract: We mine the leaked history of trades on Mt. Gox, the dominant Bitcoin exchange from 2011 to early 2014, to detect the triangular arbitrage activity conducted within the platform. The availability of user identifiers per trade allows us to focus on the historical record of 440 investors, detected as arbitrageurs, and consequently to describe their trading behavior. We begin by showing that a considerable difference appears between arbitrageurs when indicators of their expertise are taken into account. In particular, we distinguish between those who conducted arbitrage in a single or in multiple markets: using this element as a proxy for trade ability, we find that arbitrage actions performed by expert users are on average non profitable when transaction costs are accounted for, while skilled investors conduct arbitrage at a positive and statistically significant premium. Next, we show that specific trading strategies, such as splitting orders or conducting arbitrage non aggressively, are further indicators of expertise that increase the profitability of arbitrage. Most importantly, we exploit withinuser (across hours and markets) variation and document that expert users make profits on arbitrage by reacting quickly to plausible exogenous variations on the official exchange rates. We present further evidence that such differences are chiefly due to a better ability of the latter in incorporating information, both on the transactions costs and on the exchange rates volatility, eventually resulting in a better timing choice at small time scale intervals. Our results support the hypothesis that arbitrageurs are few and sophisticated users
    Keywords: Arbitrage, Bitcoin, Cryptocurrency Exchanges, Financial Econometrics, Behavior of Economic Agents
    JEL: C58 D53 G11 G40
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:usi:wpaper:860&r=
  7. By: Khalid Ahmed Al-Ansari (HBKU - Hamad Bin Khalifa University); Ahmet Aysan (HBKU - Hamad Bin Khalifa University)
    Abstract: To identify how blockchain technology affects current and future research, we carried out a bibliometric overview of the journal articles written on the blockchain. We aimed to answer some of the questions to visualize the trend of the publications regarding the advancement of blockchain utilization in fields relating to finance, economics, and social science. We used the Scopus database for the literature research, which resulted in 506 papers by 1278 authors from 79 countries. Our study showed that from 2008 till 2021, publishing about blockchain was more significant in conference papers than articles by a factor of 2. Our study also showed the importance of citation regarding published academic articles, the link to the number of publications, the authors, the universities, the affiliated organizations, and the countries of the publications. The use of authoring and citation analysis give valuable insights. On the topic of blockchain, we identified Financial Innovation as the most impactful journal on the topic, the National Natural Science Foundation of China as the leading funding sponsor on blockchain research, the USA as the highest publication production country, and Hong Kong as the highest country in the average citation per document produced. We finally identified the 20 most cited articles on the blockchain topics. Unlike other brief bibliometric studies, our study's investigation and findings could become a first stage of learning for those interested in carrying out a bibliometric study. In addition, our study could become the starting point for any future research on any blockchain projects.
    Keywords: blockchain,smart contracts,crypto,bitcoin,Bibliometric analysis
    Date: 2021–09–13
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03343048&r=
  8. By: Marymagdaline E. Tarkang (Istanbul Gelisim University, Istanbul, Turkey); Ruth N. Yunji (Eastern Mediterranean University, Turkey); Simplice A. Asongu (Yaoundé, Cameroon); Uju V. Alola (Istanbul Gelisim University, Istanbul, Turkey)
    Abstract: The mobile telecommunication (telecom) sector has become the basic source of information now-a-days especially in Cameroon. It is used to transfer and deliver information through voice, video, data, graphics, and more at perpetually increasing speeds. The quality of mobile services does not only impact the attraction of new customers but also to maintain the existing ones. The study uses relationship marketing theory and a quantitative and cross-sectional method with 200 respondents. Information was obtained from users of MTN and Orange mobile telecommunication networks. The analyses were done using SPSS version 20. Tangibility, reliability, and assurance dimensions of staff service quality showed a positive relationship with customer loyalty in mobile telecom companies in Cameroon. The findings also highlight the influence of service quality dimensions on customer loyalty in the mobile telecom companies of the country. This study complements to extant literature by examining the influence of the five service quality dimensions; tangibility, reliability, assurance, responsiveness, and empathy on consumer loyalty or retention in the mobile telecommunication companies in Cameroon.
    Keywords: Tangibility, Reliability, ICT, Empathy, Responsiveness, Assurance, customer loyalty
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:abh:wpaper:21/036&r=
  9. By: Ginger Zhe Jin; Zhentong Lu; Xiaolu Zhou; Lu Fang
    Abstract: In the world of omnichannel retail, some brands open a flagship store at online marketplaces, while others avert it. Focusing on a large e-commerce platform, we empirically study how flagship entry affects consumers, the platform, and various sellers on the platform. We find flagship entry may benefit consumers by expanding the choice set, by intensifying price competition within the entry brand, and by improving consumer perception for parts of the platform. In the meantime, flagship entry cannibalizes the sales of same-brand sellers, while other brands may gain as the buyer base expands on the platform. Counterfactual simulation suggests that flagship entry improves the gross merchandise value (GMV) of the platform but hurts existing sellers of the entry brand. On average, the effect on consumer welfare is more positive if the flagship entry is from a non-prominent brand than from a prominent brand, because consumers tend to lower their willingness to pay for individual sellers upon a prominent flagship entry. In hypothetical scenarios where flagship entry were accompanied by constraints on other same-brand sellers, the reduced competition would benefit the flagship store but hurt consumers.
    JEL: D4 L1 L8
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29239&r=
  10. By: Simplice A. Asongu (Yaounde, Cameroon); Rexon T. Nting (London, UK)
    Abstract: In this study, we assess how the mobile phone can be leveraged upon to improve the role of governance in environmental sustainability in 44 Sub-Saharan African countries. The Generalised Method of Moments is used to establish policy thresholds. A threshold is a critical mass or level of mobile phone penetration at which the net effect of governance on Carbon dioxide (CO2) emissions changes from positive to negative. Mobile phone penetration thresholds associated with negative conditional effects are: 36 (per 100 people) for political stability/no violence; 130 (per 100 people) for regulation quality; 146.66 (per 100 people) for government effectiveness; 65 (per 100 people) for corruption-control and 130 (per 100 people) for the rule of law. Practical and theoretical implications are discussed. The study provides thresholds of mobile phone penetration that are critical in complementing governance dynamics to reduce CO2 emissions.
    Keywords: CO2 emissions; ICT; Economic development; Africa
    JEL: C52 O38 O40 O55 P37
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:abh:wpaper:21/035&r=
  11. By: Polezhaeva Natalia (RANEPA)
    Abstract: Digitalization of corporate activities in Russia and the world was of great importance, and until 2020 companies seeking to be competitive in hypercompetitive markets with rapidly changing customer needs, where possible, transferred their business to digital format in different volumes and speed. The rapid transmission of COVID-19 in 2020 gave an additional impetus to digitalize the economy in the wake of the forced social distancing and isolation. Technology companies and other companies that have been able to move their businesses online have stayed afloat, though often not without significant losses. Platform companies, thanks to their inherent speed and flexibility, have come to terms more easily than traditional corporations with the conditions of the pandemic. For example, Sber and Yandex, taking advantage of the current situation, expanded their digital ecosystems, but suffered some profit losses. Wildberries and Mail. ru on the contrary have significantly increased their incomes during the crisis. This viability of the platform business in extreme conditions makes it relevant to consider this mod in more detail.
    Keywords: Russian economy, digital economy, corporate governance
    JEL: M15 M16 O31
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2021-1140&r=
  12. By: Asongu, Simplice; Adegboye, Alex; Ejemeyovwi, Jeremiah; Umukoro, Olaoluwa
    Abstract: This study assesses the relevance of mobile phone technology in complementing gender inclusive education (i.e. primary, secondary and tertiary) to promote public accountability (i.e. involving horizontal, vertical and diagonal accountability dynamics). The study utilizes the generalized method of moments (GMM) technique to establish the empirical evidence based on 48 Sub-Saharan African countries for the period 2005-2018. The following findings are documented from the linkages between mobile phone technology, inclusive education and public accountability. First, the interactions between mobile phone technology and inclusive education promote public accountability. Second, with regard to net effects, while unexpected negative signs are established, the corresponding positive interactive effects indicate that enhancing the penetration of mobile phone technology beyond some critical thresholds ensures positive net effects. Hence, policy makers should ensure that mobile phone technology penetration exceeds the established thresholds in order for gender inclusive education to positively affect public accountability.
    Keywords: Mobile phone technology, educational quality, public accountability, Africa
    JEL: E0 L96 O55
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:109847&r=
  13. By: Vervest, P.H.M.
    Abstract: The student is the centre of our universe, our only true asset, our raison d’être. Not research. Not the government. Not societal impact. The digital world has shown the devastating impact if we get this wrong. We can only succeed if we mobilise our students and alumni and reach out to all learners. We must reverse the dependency. Why not give students the money as Educoins in our educational blockchain? Let them decide. Make them co-creators in our research. In his valedictory address, Professor Peter Vervest explores the disruptive effects of digitalisation on business and extrapolates what this will mean for university education and research. He argues in favour of digitally enabled, personalised learning paths and support for students combined with modularisation of the learning portfolio and challenge-based engagement of students in the research agenda. Education and research are two sides of the same coin. In the digital world, universities can succeed if they digitally reach out to students and alumni to engage in ongoing research and learning. This requires deep investments in digital technologies and a profound transformation of the university system and metrics.
    Keywords: edtech, digital university, digital Aristotle, education, university, digital transformation, leadership, change management, ecosystem, networks, business networks, business platform, metrics
    JEL: O33
    Date: 2021–09–24
    URL: http://d.repec.org/n?u=RePEc:ems:euriar:135681&r=
  14. By: Ariane Tichit (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)
    Abstract: This article analyses the social representations of money from survey data. More specifically, it tests how organizers of a complementary currency system have a distinct perception of money compared to other citizens. The main results confirm the existence of significant differences between the two groups. The structure of their representations shows that for the local currency members money is less tied to official institutions, to the symbol of the sovereign State, to labour and to wages than for the representative population segment. This confirms a number of theoretical studies that see these social innovations as forms of protest against the standard system, questioning the sovereign State currency and close to the concept of unconditional income. Local currencies, through the different social representations of money they contain, could well be drivers of societal change.
    Keywords: Social representations of money,Survey data,Abric method,Complementary currencies
    Date: 2020–03
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03338991&r=
  15. By: Masood Tadi; Irina Kortchmeski
    Abstract: This research aims to demonstrate a dynamic cointegration-based pairs trading strategy, including an optimal look-back window framework in the cryptocurrency market, and evaluate its return and risk by applying three different scenarios. We employ the Engle-Granger methodology, the Kapetanios-Snell-Shin (KSS) test, and the Johansen test as cointegration tests in different scenarios. We calibrate the mean-reversion speed of the Ornstein-Uhlenbeck process to obtain the half-life used for the asset selection phase and look-back window estimation. By considering the main limitations in the market microstructure, our strategy exceeds the naive buy-and-hold approach in the Bitmex exchange. Another significant finding is that we implement a numerous collection of cryptocurrency coins to formulate the model's spread, which improves the risk-adjusted profitability of the pairs trading strategy. Besides, the strategy's maximum drawdown level is reasonably low, which makes it useful to be deployed. The results also indicate that a class of coins has better potential arbitrage opportunities than others. This research has some noticeable advantages, making it stand out from similar studies in the cryptocurrency market. First is the accuracy of data in which minute-binned data create the signals in the formation period. Besides, to backtest the strategy during the trading period, we simulate the trading signals using best bid/ask quotes and market trades. We exclusively take the order execution into account when the asset size is already available at its quoted price (with one or more period gaps after signal generation). This action makes the backtesting much more realistic.
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2109.10662&r=
  16. By: Consolo, Agostino; Cette, Gilbert; Bergeaud, Antonin; Labhard, Vincent; Osbat, Chiara; Kosekova, Stanimira; Anyfantaki, Sofia; Basso, Gaetano; Basso, Henrique; Bobeica, Elena; Ciapanna, Emanuela; Dedola, Luca; Foroni, Claudia; Freystatter, Hanna; Gautier, Erwan; Giron, Celestino; Hartwig, Benny; Peinado, Mario Izquierdo; Jarvis, Valerie; Maqui, Eduardo; Mohr, Matthias; Morris, Richard; Motyovszki, Gergő; Nakov, Anton; Petroulakis, Filippos; Rubene, Ieva; Trezzi, Riccardo; Vivian, Lara; Weber, Henning; Wieland, Elisabeth; Neves, Pedro
    Abstract: The digitalisation workstream report analyses the degree of digital adoption across the euro area and EU countries and the implications of digitalisation for measurement, productivity, labour markets and inflation, as well as more recent developments during the coronavirus (COVID-19) pandemic and their implications. Analysis of these key issues and variables is aimed at improving our understanding of the implications of digitalisation for monetary policy and its transmission. The degree of digital adoption differs across the euro area/EU, implying heterogeneous impacts, with most EU economies currently lagging behind the United States and Japan. Rising digitalisation has rendered price measurement more challenging, owing to, among other things, faster changes in products and product quality, but also new ways of price setting, e.g. dynamic or customised pricing, and services that were previously payable but are now “free”. Despite the spread of digital technologies, aggregate productivity growth has decreased in most advanced economies since the 1970s. However, it is likely that without the spread of digital technologies the productivity slowdown would have been even more pronounced, and the recent acceleration in digitalisation is likely to boost future productivity gains from digitalisation. Digitalisation has spurred greater automation, with temporary labour market disruptions, albeit unevenly across sectors. The long-run employment effects of digitalisation can be benign, but its effects on wages and labour share depend on the structure of the economy and its labour market institutions. The pandemic has accelerated the use of teleworking: roughly every third job in the euro area/EU is teleworkable, although there are differences across countries. ... JEL Classification: E24, E31, E32, O33, O57
    Keywords: COVID-19, inflation, labour markets, measurement, productivity
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:ecb:ecbops:2021266&r=
  17. By: Knut Are Aastveit; Tuva Marie Fastbø; Eleonora Granziera; Kenneth Sæterhagen Paulsen; Kjersti Næss Torstensen
    Abstract: We use a novel data set covering all domestic debit card transactions in physical terminals by Norwegian households, to nowcast quarterly Norwegian household consumption. These card payments data are free of sampling errors and are available weekly without delays, providing a valuable early indicator of household spending. To account for mixed-frequency data, we estimate various mixed-data sampling (MIDAS) regressions using predictors sampled at monthly and weekly frequency. We evaluate both point and density forecasting performance over the sample 2011Q4-2020Q1. Our results show that MIDAS regressions with debit card transactions data improve both point and density forecast accuracy over competitive standard benchmark models that use alternative high-frequency predictors. Finally, we illustrate the beneï¬ ts of using the card payments data by obtaining a timely and relatively accurate now cast of the ï¬ rst quarter of 2020, a quarter characterized by heightened uncertainty due to the COVID-19 pandemic.
    Keywords: debit card transaction data, nowcasting, forecast evaluation, COVID-19
    JEL: C22 C52 C53 E27
    Date: 2020–11–08
    URL: http://d.repec.org/n?u=RePEc:bno:worpap:2020_17&r=
  18. By: Affeldt, P.; Argentesi, E.; Filistrucchi, Lapo (Tilburg University, Center For Economic Research)
    Keywords: two-sided markets; plateforme; multi-homing; media; advertising
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:tiu:tiucen:1317bf39-d02e-4f61-a34f-e01f6efbefdd&r=
  19. By: Kei Kawai; Ken Onishi; Kosuke Uetake
    Abstract: We study how signaling affects equilibrium outcomes and welfare in an online credit market using detailed data on loan characteristics and borrower repayment. We build and estimate an equilibrium model in which a borrower may signal her default risk through the reserve interest rate. Comparing a market with and without signaling relative to the benchmark with no asymmetric information, we find that adverse selection destroys as much as 34% of total surplus, up to 78% of which can be restored with signaling. We also estimate backward-bending supply curves for some markets, consistent with the prediction of Stiglitz & Weiss (1981).
    JEL: D82 G21 L15
    Date: 2021–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:29268&r=
  20. By: Carole Gresse (DRM - Dauphine Recherches en Management - CNRS - Centre National de la Recherche Scientifique - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres); Hugo Marin (DRM - Dauphine Recherches en Management - CNRS - Centre National de la Recherche Scientifique - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres)
    Abstract: Using data from a peer-to-business crowdlending platform that exploits an auction-driven system to fund corporate loans, we show that non-professional investors are subject to a geographical-proximity bias. They are more likely to win the auctions of borrowers located close to their place of residence notwithstanding that they are not better informed about their creditworthiness. Unexpectedly, this behavioral bias distorts the loan rate discovery processby increasing the cost of funding for borrowers. This adverse effect results from the greaterability of local investors to submit winning bids at an early stage. This ability is gained from their experience in previous auctions of geographically close borrowers. This suggests that the familiarity feeling stemming from geographical closeness strengthens investor attention,and thereby improves lenders' knowledge about the dynamics of the order flow in local borrowers' auctions.
    Keywords: peer-to-business crowdlending,crowdfunding,behavioral finance,loan performance,price discovery process
    Date: 2021–09–08
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03338244&r=
  21. By: Alexander Jaax; Frédéric Gonzales; Annabelle Mourougane
    Abstract: The increasing importance of services trade in the global economy contrasts with the lack of timely data to monitor recent developments. The nowcasting models developed in this paper are aimed at providing insights into current changes in total services trade, as recorded in monthly statistics of the G7 countries. Combining machine-learning techniques and dynamic factor models, the methodology exploits traditional data and Google Trends search data. No single model outperforms the others, but a weighted average of the best models combining machine-learning with dynamic factor models seems to be a promising avenue. The best models improve one-step ahead predictive performance relative to a simple benchmark by 30-35% on average across G7 countries and trade flows. Nowcasting models are estimated to have captured about 67% of the fall in services exports due to the COVID-19 shock and 60% of the fall in imports on average across G7 economies.
    Keywords: Dynamic factor models, G7 economies, Machine learning
    JEL: C4 C22 F17
    Date: 2021–09–23
    URL: http://d.repec.org/n?u=RePEc:oec:traaab:253-en&r=
  22. By: Myriam Le Goff-Pronost (IMT Atlantique - LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris], MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - UBS - Université de Bretagne Sud - IMT - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - UBO - Université de Brest - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes, LaTIM - Laboratoire de Traitement de l'Information Medicale - UBO - Université de Brest - INSERM - Institut National de la Santé et de la Recherche Médicale - CHRU Brest - Centre Hospitalier Régional Universitaire de Brest - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris] - IBSAM - Institut Brestois Santé Agro Matière - UBO - Université de Brest); Nicolas Jullien (IMT Atlantique - LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris], MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - UBS - Université de Bretagne Sud - IMT - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - UBO - Université de Brest - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris]); Godefroy Dang Nguyen (IMT Atlantique - LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris], MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - UBS - Université de Bretagne Sud - IMT - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2 - UNIV-RENNES - Université de Rennes - UBO - Université de Brest - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes, LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire - IMT - Institut Mines-Télécom [Paris])
    Abstract: Background: the economic model of Wikipedia is based on donations. What would happen if these donations were to decrease and no longer covered all the costs borne by the Wikimedia Foundation? Objectives: we propose to measure, through a contingent valuation model, the willingness to pay Wikipedia users for free access without advertising (traditional economic model of online projects). What is the amount they are willing to pay and what is the profile and motivation of the donors? Method: the study is based on a survey of 16432 french-language people and a Heckman-type econometric model. Results: the results estimate that the average amount that people are willing to pay per year for Wikipedia without advertising is € 5.64 (€ 7.73, considering only those who agree to pay). The profile of those willing to pay is identical to that of other public goods, and the value of the amount paid is highly dependent on the level of income. The amount envisaged is higher than the donation campaigns proposed by Wikipedia (€ 2) but lower than the average donation received by the Wikimedia Foundation (€ 10), but these are often nonrecurring donations.
    Keywords: contingent valuation,online projects,willingness-to-pay,Wikipedia
    Date: 2021
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-03338895&r=
  23. By: Tamás Peragovics (Institute of World Economics, Centre for Economic and Regional Studies)
    Abstract: One of the protagonists of globalization in the past decade has been China. Its economic and financial footprint has deepened across the globe, and its companies are active in all industries, with few countries left untouched by such interest. A key instrument in this expansion are mergers and acquisitions (M&A) projects pursued by Chinese companies, many of which are focused on technologically advanced, and thus politically sensitive, businesses in Western countries. This expansion is fueled in large part by China’s Go Global strategy, initiated in 1999, and, more recently, the Made in China 2025 campaign. The US has drawn considerable interest from Chinese companies since the 2010s, many of which are aimed to buy into key American businesses. This working paper discusses Chinese M&A activities in the US during this period, focusing on the political obstacles and regulatory difficulties they encounter. In so doing, the study demonstrates that the American M&A market showed more receptivity towards Chinese projects in the first half of the 2010s, while it became more politically charged after 2016, in large part due to the steady deterioration of ties between Beijing and Washington. The case of TikTok and other high-profile Chinese businesses are used to illustrate these developments.
    Keywords: China, USA, mergers, acquisitions, TikTok
    JEL: G34 G11 P33 P45
    Date: 2021–04
    URL: http://d.repec.org/n?u=RePEc:iwe:workpr:264&r=
  24. By: Ofori, Pamela Efua; Grechyna, Daryna
    Abstract: Despite the established link between oil rent fluctuations and remittances received, its plausible joint effect on economic growth in Sub-Saharan Africa (SSA) remains unexplored. To fill this gap, first we determine whether natural resource rent (composed of oil rent, forest rent and natural gas rent) reduces economic growth in SSA. Second, we examine whether positive macroeconomic signals such as remittances mitigate the negative effect of oil rents on economic growth in a sample of 43 SSA countries spanning 1990-2017. We employ the pooled ordinary least squares, fixed-effects and random-effects, and generalized method of moments. The resulting empirical evidence established are; (1) There is a positive impact of forest rent on economic growth whilst oil rent and natural gas rent have a negative impact on economic growth. (2) There is a positive marginal and net effect on economic growth from the interaction between remittances and oil rent. Also, the unconditional effect of remittances on growth is positive. We further perform a threshold analysis to establish a critical ground that could also influence economic growth positively. This threshold is crucial because above these critical mass remittance inflows mitigate the negative incidence of oil rent on economic growth and below the threshold negative oil rent on growth is completely nullified. This is relevant for policy implications because policy makers are provided with actionable levels of remittances which are easily attainable in sampled countries.
    Keywords: Remittances, Natural resource rent, oil rent, Economic growth, Sub-Saharan Africa.
    JEL: F4 F43 O4
    Date: 2021–05–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:109696&r=

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