nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2021‒11‒08
24 papers chosen by
Bernardo Bátiz-Lazo
Northumbria University

  1. China's Transition to a Digital Currency: Does It Threaten Dollarization? By Ahmet Faruk Aysan; Nawaz Farrukh
  2. Big techs in finance: on the new nexus between data privacy and competition By Frederic Boissay; Torsten Ehlers; Leonardo Gambacorta; Hyun Song Shin
  3. Finding jobs in private households online: A comparative analysis of digitally-mediated care and domestic service work in Australia, Germany, Denmark, Spain and the United Kingdom By Molitor, Friederike; Munnes, Stefan; Wójcik, Piotr; Hipp, Lena
  4. Bitcoin selection rule and foundational game theoretic representation of mining competition By A. Mantovi
  5. Sustainability, Trust and Blockchain Applications: Best Practices and Fintech Prospects By Ahmet Faruk Aysan; Fouad Bergigui
  6. Incentivos no coercitivos para mantener el uso de plataformas de dos lados By Sergio León à lvarez Fernández
  7. Pricing and Fees in Auction Platforms with Two-Sided Entry By Marleen Marra
  8. FinTech adoption and household risk-taking By Hong, Claire Yurong; Lu, Xiaomeng; Pan, Jun
  9. FinTech Lending By Tobias Berg; Andreas Fuster; Manju Puri
  10. Toward a Global Approach to Data in the Digital Age By Mr. Yan Carriere-Swallow; Mr. Vikram Haksar; Emanuel Kopp; Gabriel Quiros; Emran Islam; Andrew Giddings; Kathleen Kao
  11. 3D printing and International Trade: What is the evidence to date? By Andrea Andrenelli; Javier López González
  12. AI and Jobs: Evidence from Online Vacancies By Daron Acemoglu; David Autor; Jonathon Hazell; Pascual Restrepo
  13. Factors Affecting Consumer Buying Behavior in E-Commerce Business during Outbreak of Covid-19: A Case Study on Top E-Commerce Websites By Jawaid, Muhammad Hassan; Karim, Emadul
  14. Media Competition and News Diets By Charles Angelucci; Julia Cage; Michael Sinkinson
  15. Gold is Old: Noble Metal in Indian Economy through Ages By Deodhar, Satish Y.
  17. France Barter : Une plateforme de troc inter-entreprises animée par une Fintech coopérative By Philippe Eynaud; Cynthia Srnec
  18. Scale-up phase in deeptech start-ups: Replication or massive learnings? By Louise Taupin; Pascal Le Masson; Blanche Segrestin
  19. The asymmetric effect of internet access on economic growth in sub-Saharan Africa By Idris A. Abdulqadir; Simplice A. Asongu
  20. Early monetary policies of the Tokugawa shogunate and merchants f coping strategies: 1695?1736 By Atsuko Suzuki
  22. The impact of trust in the developing sector of microinsurance in South Africa By Mathithibane, Mpho Steve
  23. Calendar effects and crowdfunded projects By Alexandre Garel; Benjamin Le Pendeven
  24. The global transmission of U.S. monetary policy By Riccardo Degasperi; Seokki Simon Hong; Giovanni Ricco

  1. By: Ahmet Faruk Aysan (HBKU - Hamad Bin Khalifa University); Nawaz Farrukh
    Abstract: This article provides a detailed introduction to China's launching of a digital currency. We conduct a comparative analysis concerning whether digital currency is a more stable and reliable currency than cryptocurrency and investigate whether a digital renminbi (or yuan) could replace the US dollar as a medium of exchange in international transactions. China has gained a first-mover advantage by rolling out a central bank digital currency (CBDC). But the outcome will depend on the US response as well as the future evolution of the US and Chinese economies. Most other articles on this topic focus on domestic use of the Chinese CBDC. But this study is unique in analyzing the prospects of a digital renminbi as a replacement for the US dollar in international commerce.
    Keywords: China,cryptocurrency,digital yuan,People's Bank of China,US. JEL Classifications: E42,E58,G28
    Date: 2021–10–05
  2. By: Frederic Boissay; Torsten Ehlers; Leonardo Gambacorta; Hyun Song Shin
    Abstract: The business model of big techs rests on enabling direct interactions among a large number of users on digital platforms, such as in e-commerce, search and social media. An essential by-product is their large stock of user data, which they use to offer a wide range of services and exploit natural network effects, generating further user activity. Increased user activity completes the circle, as it generates yet more data. Building on the self-reinforcing nature of the data- network-activities loop, some big techs have ventured into financial services, including payments, money management, insurance and lending. The entry of big techs into finance promises efficiency gains and greater financial inclusion. At the same time, it introduces new risks associated with market power and data privacy. The nature of the new trade-off between efficiency and privacy will depend on societal preferences, and will vary across jurisdictions. This increases the need to coordinate policies both at the domestic and international level.
    JEL: E51 G23 O31
    Date: 2021–10
  3. By: Molitor, Friederike; Munnes, Stefan; Wójcik, Piotr; Hipp, Lena
    Abstract: We study the working conditions of care and domestic workers who offer their services on digital platforms in Australia, Germany, Denmark, Spain and the United Kingdom. By drawing on survey data collected on a digital platform in 2019, we examine workers' demographics and their experiences with the online platform and with their clients.
    Keywords: Care and domestic service work,platform economy,gender
    Date: 2021
  4. By: A. Mantovi
    Abstract: The Bitcoin selection rule shapes the basic mining (rent-seeking) competition, whose unique Nash equilibrium has been thoroughly investigated in terms of best responses to the overall scale of activity and entry thresholds. It is the aim of the present contribution to deepen such game theoretic aspects of Proof-of-Work and provide a unifying perspective on approaches employing absolute and relative levels of activity, and envision a ‘map’ of strategic space that may frame and cross-fertilize more realistic refinements of mining competition and blockchain phenomenology. The additive aggragation property of the selection rule has pivotal implications for thorough investigations of best response dynamics. Potential lines of progress are briefly sketched.
    Keywords: Blockchain; Proof-of-Work; Rent Seeking; Nash Equilibrium; Additive Aggregation;Best Response Dynamics
    JEL: C72 D82 E42 O33
    Date: 2021
  5. By: Ahmet Faruk Aysan (HBKU - Hamad Bin Khalifa University); Fouad Bergigui
    Abstract: Since the adoption of the SDGs in 2015, it has been a 5-year journey of trial and error experimentations all over the world to come up with innovative solutions beyond business-as-usual and get the job done. In this paper, we assess blockchain-backed solutions beyond the hype. While the technology has a promising potential to trigger disruptive innovations to fulfill the SGDs, it is not mature yet with many gaps in terms of approaches and tools to develop blockchain use cases, monitor and evaluate blockchain experiments, mitigate associated risks and ethical considerations while managing changes within organizations leading blockchain-powered platforms. It is only by filing these gaps that blockchain can deliver its promises and may be effectively used as an SDG accelerator. Islamic finance can play a key role in shaping the transition towards a more circular economy. One promising way of doing so, is by scaling-up the use of blockchainenabled solutions in the practices of circular economy and Islamic finance. As the technology is still getting mature, more innovative and applied research is needed to capitalize on the lessons learned within various geographies and across a wide range of economic, social, and environmental spectrums.
    Keywords: Blockchain,SDGs,innovation,Islamic finance,circular economy
    Date: 2021–10–05
  6. By: Sergio León à lvarez Fernández
    Abstract: En la era digital las plataformas de dos lados hacen parte elemental del estudio de la microeconomía moderna. Actualmente, en la literatura se encuentra mucha información acerca de la competencia, determinación de precios y el poder de mercado que estas poseen; sin embargo, poco se ha escrito con respecto a los mecanismos que brinden a las plataformas distintas maneras de mantener su supervivencia, es decir, sobre cómo hacer que los usuarios de ambos lados usen la plataforma y decidan transar en esta. En este artículo se pretende mostrar, por medio de la teoría de juegos, tres mecanismos en los que el uso de las plataformas es un equilibrio de Nash, para después comparar cuál de ellos –si lo hay– produce mejores resultados sociales al momento de repetirse indefinidamente. El lector podrá observar que los incentivos no coercitivos, o zanahorias, serán mejores, en términos sociales, para garantizar la supervivencia de las plataformas en el mercado. *** In digital era, the two-sided platforms play an important role in the study of modern microeconomics. Currently, there is a lot of information in the literature about the competence, pricing, and market power that they have; nevertheless, little has been written about the mechanisms that provide platforms with different ways to maintain their survival. That is, in how to encourage users in both sides of the platform to use it and decide to transact on it. This article aims to show, by means of game theory, three mechanisms in which the use of platforms is a Nash equilibrium, and then to compare which of them -if any- produces better social outcomes when repeated indefinitely. The reader may observe that non-coercive incentives, also known as carrots, will be better to maintain the survival of platforms in the market.
    Keywords: plataformas de dos lados, diseño de mecanismos, compatibilidad de incentivos, teoría de juegos.
    JEL: C70 C72 C73 D40
    Date: 2021–10–29
  7. By: Marleen Marra (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper presents, solves, and estimates the first structural auction model with seller selection. This allows me to quantify network effects arising from endogenous bidder and seller entry into auction platforms, facilitating the estimation of theoretically ambiguous fee impacts by tracing them through the game. Relevant model primitives are identified from variation in second-highest bids and reserve prices. My estimator builds off the discrete choice literature to address the double nested fixed point characterization of the entry equilibrium. Using new wine auction data, I estimate that this platform's revenues increase up to 60% when introducing a bidder discount and simultaneously increasing seller fees. More bidders enter when the platform is populated with lower-reserve setting sellers, driving up prices. Moreover, I show that meaningful antitrust damages can be estimated in a platform setting despite this two-sidedness.
    Keywords: Auctions with entry,Two-sided markets,Nonparametric identification,Estimation,Nested fixed point
    Date: 2019–12–01
  8. By: Hong, Claire Yurong; Lu, Xiaomeng; Pan, Jun
    Abstract: Using a unique FinTech data containing monthly individual-level consumption, investments, and payments, we examine how FinTech can lower investment barriers and improve risk-taking. Seizing on the rapid expansion of offline usages of Alipay in China, we measure individuals’ FinTech adoption by the speed and intensity with which they adopt the new technology. Our hypothesis is that individuals with high FinTech adoption, through repeated usages of the Alipay app, would build familiarity and trust, reducing the psychological barriers against investing in risky assets. Measuring risk-taking by individuals’ mutual-fund investments on the FinTech platform, we find that higher FinTech adoption results in higher participation and more risk-taking. Using the distance to Hangzhou as an instrument variable to capture the exogenous variation in FinTech adoption yields results of similar economic and statistical significance. Focusing on the welfare-improving aspect of FinTech inclusion, we find that individuals with high risk tolerance, hence more risk-taking capacity, and those living in under-banked cities stand to benefit more from the advent of FinTech.
    JEL: G11 G50
    Date: 2021–10–25
  9. By: Tobias Berg (Frankfurt School of Finance & Management); Andreas Fuster (Ecole Polytechnique Fédérale de Lausanne; Swiss Finance Institute; Centre for Economic Policy Research (CEPR)); Manju Puri (Duke University - Fuqua School of Business; NBER)
    Abstract: In this paper, we review the growing literature on FinTech lending – the provision of credit facilitated by technology that improves the customer-lender interaction or lenders’ screening and monitoring of borrowers. FinTech lending has grown rapidly, though in developed economies like the U.S. it still only accounts for a small share of total credit. An increase in convenience and speed appears to have been more central to FinTech lending’s growth than improved screening or monitoring, though there is certainly potential for the latter, as is the case for increased financial inclusion. The COVID 19 pandemic has shown potential vulnerabilities of FinTech lenders, although in certain segments they have displayed rapid growth.
    Keywords: FinTech, lending, COVID-19
    JEL: G21 G23 G51
    Date: 2021–10
  10. By: Mr. Yan Carriere-Swallow; Mr. Vikram Haksar; Emanuel Kopp; Gabriel Quiros; Emran Islam; Andrew Giddings; Kathleen Kao
    Abstract: The ongoing economic and financial digitalization is making individual data a key input and source of value for companies across sectors, from bigtechs and pharmaceuticals to manufacturers and financial services providers. Data on human behavior and choices—our “likes,” purchase patterns, locations, social activities, biometrics, and financing choices—are being generated, collected, stored, and processed at an unprecedented scale.
    Keywords: Data, finance, bigtech, competition, privacy, trade, policy coordination, global principles
    Date: 2021–10–06
  11. By: Andrea Andrenelli; Javier López González
    Abstract: 3D printing technologies have attracted the attention of the trade policy community for their potential to disrupt international trade. It is argued that greater cross-border exchange in design files for local printing may lead to less trade in physical goods. New evidence presented in this paper suggests quite the opposite: that the adoption of 3D printing technologies, proxied by measures of imports of 3D printers, appears to be complementary to goods trade. On average, an increase of around USD 14 000 in imports of 3D printers is associated with a USD 3.3 million increase in the value of exports of 3D printable goods. Similar dynamics are found for imports of 3D printable goods. Overall, this implies that the wider adoption of the technology has, at present, limited implications for the ongoing debate on the renewal of the WTO Moratorium on customs duties on electronic transmissions as it is unlikely to result in loss of goods trade and traditional tariff revenue.
    Keywords: 3D printable goods, Additive manufacturing, Digital trade, Electronic transmissions, System GMM, WTO Moratorium
    JEL: F13 F14 O33
    Date: 2021–11–04
  12. By: Daron Acemoglu (MIT); David Autor (MIT); Jonathon Hazell (Princeton University and LSE); Pascual Restrepo (Boston University)
    Abstract: We study the impact of AI on labor markets, using establishment level data on vacancies with detailed occupational information comprising the near-universe of online vacancies in the US from 2010 onwards. We classify establishments as "AI exposed" when their workers engage in tasks that are compatible with current AI capabilities.We document rapid growth in AI related vacancies over 2010-2018 that is not limited to the Professional and Business Services and Information Technology sectors and is significantly greater in AI-exposed establishments. AI-exposed establishments are differentially eliminating vacancy postings that list a range of previously-posted skills while simultaneously posting skill requirements that were not previously listed.Establishment-level estimates suggest that AI-exposed establishments are reducing hiring in non-AI positions even as they expand AI hiring. However, we find no discernible impact of AI exposure on employment or wages at the occupation or industry level,implying that AI is currently substituting for humans in a subset of tasks but it is not yet having detectable aggregate labor market consequences.
    Keywords: artificial intelligence, displacement, labor, jobs, tasks, technology, wages
    JEL: J23 O33
    Date: 2020–12
  13. By: Jawaid, Muhammad Hassan; Karim, Emadul
    Abstract: This research was conducted to investigate the factors that have affected the consumer buying behavior in ecommerce business, especially during COVID-19. This research was conducted via quantitative analysis, and 200 participants were recruited for analysis. The statistical tests that were conducted in this research included demographics via frequency analysis, Cronbach’s Alpha test for the questionnaire reliability, correlation analysis to test the strength of the relationship in between variables, and regression analysis for finding the impact of consumer behavior on the dependent variables of social media campaigns, television commercials, e-paper advertisements, and word of mouth marketing. In this context, the research found that social media campaigns and television commercials had no significant impact on the consumer buying behavior, whereas e-paper advertisements and word of mouth marketing had significant impact on the buying behavior of consumers during COVID-19. Based on the findings of this research, it was recommended that e-commerce businesses must upload the articles on social media regarding the product or services that are offered by the business so that the customer attains a complete understanding of the products or services, which will attract the customers and will influence the purchasing behavior of the customers positively.
    Keywords: Ecommerce, COVID-19, Consumer Buying Behavior, Social Media Campaign, Television Commercials, E-paper Advertisement, and Word of Mouth.
    JEL: D12 L81 M3 M31
    Date: 2021–11–01
  14. By: Charles Angelucci; Julia Cage (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Michael Sinkinson
    Abstract: News media operate in two-sided markets, offering bundles of content to readers as well as selling readers' attention to advertisers. Technological innovations in content delivery, such as the advent of broadcast television or of the Internet, affect both sides of the market, threatening the basic economic model of print news operations. We examine how the entry of television affected local newspapers as well as consumer media diets in the United States. We develop a model of print media and show that entry of national television news could adversely affect the provision of local news. We construct a novel dataset of U.S. newspapers' economic performance and content choices from 1944 to 1964. Our empirical strategy exploits quasi-random variation in the timing of the entry of television in different markets. We show that the entry of television was a negative shock for newspapers, particularly evening newspapers, in both the readership and advertising markets. Further, we find a drop in the total quantity of news printed, in particular original reporting, raising concerns about the provision of local news.
    Date: 2020–02–01
  15. By: Deodhar, Satish Y.
    Abstract: For millennia, gold is considered auspicious in India and consumers have a fascination for possessing gold, gold jewellery, and gold coins. In this paper I document the sacredness associated with gold, the ancient Indian references to gold jewellery, availability and technology of extracting gold in those times, minting of gold coins and its function as a medium of exchange and store of value, and accumulation of gold stock due to favourable trade with the Occident in the common era. I draw attention to Indian obsession with gold in modern times, when none is produced domestically and it contributing negatively to India’s external account. The gargantuan stock of about 24,245 tonnes of gold in India has to be considered as accumulated hoardings and not accumulated savings. Along with increasing the propensity of flow of savings going into financial markets and not in physical gold; suggestions are made to popularize and improve implementation of gold monetization scheme (GMS). This will re-channel idle stock of gold into financial markets and reduce deficit on the external account.
    Date: 2021–11–02
  16. By: Ergo Themas; Maryna Tverdostup
    Abstract: Purchasing a car is one of the decisions that may have a sizeable negative impact on an individual or family budget if all costs associated with owning a car are not properly considered. With car leasing being easily accessible, car buyers may underestimate all the costs beyond the leasing payments when choosing a car and select a vehicle above their own budget. This paper conducts an online field experiment in a specially designed bot in the Facebook Messenger application in Estonia, to investigate whether disclosing the complete personalized total cost of ownership (TCO) leads to a better calibrated choice of cars for a test drive. The study documents that introducing better information into real-life car choices does not have a positive effect on the correspondence between cost of car and individual budget. Quite the opposite, subjects deviate from their budget even more when a personalized TCO (for one month or five years) is disclosed, and in particular, subjects generally tend to choose cars above their budget. While previous studies on car buyer behaviour with different cost information have been carried out as lab experiments with hypothetical car buyers, our study contributes to the literature by conducting a field experiment with real car buyers, finding a substantial gap with the results obtained in the lab setting.
    Keywords: Consumer behaviour; Online field experiment; Rational decision-making; Total cost of ownership
    Date: 2021
  17. By: Philippe Eynaud (IAE Paris - Sorbonne Business School); Cynthia Srnec
    Abstract: This research has benefited from the financial participation of the DARES (Ministry of Labor, Employment and Integration), as part of a research program on the collaborative economy, jointly organized by the DREES (Ministry of Solidarity and Health) and the DARES as part of the call on the topic "Forms of collaborative economy and social protection". The TAPAS program is led by Corinne Vercher-Chaptal, CEPN - Centre d'économie et de gestion (UMR CNRS 7234) of the University of Sorbonne Paris Nord. It gathered a multidisciplinary research team (management, economics, sociology and law), which includes field actors. The program benefits from a partnership with the Plateformes en Communs (PEC) group of the association La Coop des Communs. The TAPAS program aims to deepen the distinction between "platform companies" and so-called "collaborative" or "alternative" platforms. While the former are characterized by vertical governance and the appropriation of most of the value created by the platform manager, alternative platforms are organized in a more horizontal manner and distribute bundles of rights over the resources created, according to the sharing rational of the commons. They participate to a field do action that is likely to emancipate itself from purely commercial principles in order to better address the imperatives of social and environmental sustainability, by mobilizing a plurality of economic principles and by creating links with the initiatives of the digital commons and the social and solidarity economy. The empirical study is based on nine in-depth case studies: CoopCycle, France Barter, Framasoft, Mobicoop, Oiseaux de Passage, Open Food France, SoTicket, Tënk. The corresponding monographs are integrated in the TAPAS collection available on HAL. The analyses conducted by the team aim to provide information on the characteristics and conditions of development of these alternative platforms (in terms of economic models, governance and work) which, through the solutions and innovations they bring, can foreshadow the evolution of innovative practices and regulations.
    Abstract: Cette recherche a bénéficié de la participation financière de la DARES (Ministère du travail, de l'emploi et de l'insertion), dans le cadre d'un programme de recherche sur l'économie collaborative, organisé conjointement par la DREES (Ministère des Solidarités et de la Santé) et la DARES dans le cadre de l'APR Formes d'économie collaborative et protection sociale. Le programme TAPAS est piloté par Corinne Vercher-Chaptal, CEPN – Centre d'économie et de gestion (UMR CNRS 7234) de l'Université Sorbonne Paris Nord. Il a mobilisé une équipe de recherche pluridisciplinaire (gestion, économie, sociologie et droit), qui inclue des acteurs de terrain. Le programme bénéficie du partenariat avec le groupe Plateformes en Communs (PEC) de l'association La Coop des Communs. Le programme TAPAS vise à approfondir la distinction entre les « entreprises plateformes » et les plateformes dites « collaboratives » ou « alternatives ». Alors que les premières se caractérisent par une gouvernance verticale et l'appropriation de l'essentiel de la valeur créée par le gestionnaire de la plateforme, les plateformes alternatives s'organisent de manière plus horizontale et répartissent des faisceaux de droits sur les ressources créées, selon la logique de partage des communs. Elles dessinent un champ susceptible de s'émanciper des principes purement marchands afin de mieux répondre à des impératifs de soutenabilité sociale et environnementale, en mobilisant une pluralité de principes économiques et en créant des articulations avec les initiatives des communs numériques et de l'économie sociale et solidaire. L'étude empirique repose sur neuf études de cas en profondeur : CoopCycle, France Barter, Framasoft, Mobicoop, Oiseaux de Passage, Open Food France, SoTicket, Tënk. Les monographies correspondantes sont intégrées dans la collection TAPAS mise à disposition sur HAL. Les analyses menées par l'équipe vise à renseigner les caractéristiques et les conditions de développement de ces plateformes alternatives (en termes de modèles économiques, de gouvernance et de travail) qui peuvent, par les solutions et les innovations dont elles sont porteuses, préfigurer l'évolution des pratiques et des régulations novatrices.
    Keywords: Alternative Platforms,Collaborative economy,Barter,Cooperative platform,TAPAS,Plateforme alternative,Economie collaborative,Plateforme coopérative
    Date: 2021–09
  18. By: Louise Taupin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, BPIFRANCE); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Because of the possible response to main, current and global issues, a particular attention is paid to deeptech start-ups and their growth mechanisms. Nevertheless, first observations on technological start-ups point out a limited growth. As deeptech start-ups are developing by nature advanced technologies, they are intended to be deployed on different markets, revealing technological genericity. Scaling these technologies encounters unfortunately some hurdles and seems to be more complex. This article focuses on scale-up for deeptech startups and on means to achieve this development phase. Literature usually considers scale-up as a phase of business model replication, suggesting low learnings. On the contrary, our hypothesis is to regard scale-up as a more complex phase in deeptech start-ups development, through additional means and learnings that have to be determined. This research is based on 8 case studies from different fields: For each start-up, we study what should be learnt and what should be relevant design strategies to ensure scale-up. Main issue in scale-up phase appears to prove that most of activities will not change, that should refer to the concept of creation heritage, taking into account external interactions.
    Keywords: Start-up deeptech,Scale-up
    Date: 2021–07–07
  19. By: Idris A. Abdulqadir (Federal University Dutse, Dutse, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: This article investigates the asymmetric effect of internet access (index of the internet) on economic growth in 42 sub-Saharan African (SSA) countries over the period 2008-2018.The estimation procedure is obtained following a dynamic panel threshold regression technique via 1000 bootstrap replications and the 400 grids search developed by Hansen (1996, 1999, 2000). The investigation first explores the presence of inflection points in the relationship between internet access and economic growth through the application of Hansen's threshold models. The finding from the nonlinearity threshold model revealed a significant internet threshold-effect of 3.55 percent for growth. The article also examines the linear short-run effect of internet access on economic growth while controlling for the effects of private sector credit, trade openness, government regulation, and tariff regimes. The marginal effect of internet access is evaluated at the minimum, and the maximum levels of government regulation and tariffs regime are positive. On the other hand, the minimum and maximum levels of private sector credit and trade openness are negative via the interaction terms. The article advances the literature by its nonlinear transformation of the relevance of internet access on economic growth by exploring interactive mechanisms of internet access versus financial resource, internet access versus trade, internet access versus government regulation, and internet access versus the tariff regimes from end-user subscriptions. In policy terms, the statistical significance of the joint impact of government regulations and tariff regimes is relevant in the operation of the telecommunication industry in SSA countries.
    Keywords: Internet access; economic growth; government regulations; trade openness; tariff regimes; sub-Saharan Africa
    Date: 2021–01
  20. By: Atsuko Suzuki (Graduate School of Economics, Osaka University)
    Abstract: The Tokugawa monetary system was a new experience in Japanese history, and the Genroku debasement, which was necessitated by the exhaustion of gold and silver resources, was a new experiment for both the shogunate and merchants, the representatives of the townspeople. For the same reason, the shogunate had no choice but to implement a monetary policy gnominalistically, h but the merchants responded gmetallistically. h This was because the merchants valued money as bullion. The conflict between the shogunate and merchants played an important role in invigorating the Tokugawa economy. This study describes the historical economic situation.
    Keywords: commodity money, early modern Japan, fixed and floating exchange rates, Edo and Osaka, nominalistic and metallistic
    JEL: D46 E31 K42 N15 Z13
    Date: 2021–11
  21. By: Francesco Aiello (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria); Graziella Bonanno (Departimento di Economia, Università di Salerno); Francesco Foglia (Università Dante Alighieri, Reggio Calabria)
    Abstract: This note focuses on the impact of coronavirus on Italian tourism. Using a sample of 1056 travellers, we find a positive relationship between the security of destination and the probability to accommodate in hotels and B&B. Furthermore, regional contagion is negatively associated to the willingness to pay for accommodation services. The policy implications are twofold. Firstly, hotels/B&B claim for financial support to ensure social distancing and, thus, security that will attract tourists. Secondly, public finance could sustain the demand of tourist services in hotels and B&B which is lowering because of coronavirus.
    Keywords: Covid-19, Italian tourism, willingness to pay, pandemic crisis, accommodation type, hotels and B&B
    Date: 2021–10
  22. By: Mathithibane, Mpho Steve
    Abstract: The aim of this paper is to investigates the influence of trust on insurance penetration in the developing Microinsurance sector of South Africa. Legacy issues and deeply rooted structural and institutional frailties have resulted in substandard levels of financial inclusion for low-income earners in the country. This segment of consumers is highly vulnerable to social, economic and as the covid-19 pandemic has proved, health shocks. Microinsurance has often been touted as a solution to improve resilience and turn the tide of significant adverse economic outcomes for the low-income segment. This paper explores the role of trust as a key construct for business success in the microinsurance sector. The study findings indicate that creation of trust and reassurance that claims will be honored when liability occurs are the main elements valued by prospective and existing microinsurance consumers. These findings contribute to advancing knowledge within the microinsurance segment, in particular, key traits needed in constructing a successful insurance programme as well as the messaging and serving element that needs to be placed at the forefront of product design and marketing in order to build trust.
    Keywords: Microinsurance, low-income market, South Africa
    JEL: D18 G22
    Date: 2021–10–28
  23. By: Alexandre Garel (Audencia Recherche - Audencia Business School); Benjamin Le Pendeven (Audencia Recherche - Audencia Business School)
    Date: 2021–09–17
  24. By: Riccardo Degasperi; Seokki Simon Hong; Giovanni Ricco (Departement of Economics - University of Warwick - University of Warwick [Coventry])
    Abstract: We quantify global US monetary policy spillovers by employing a high-frequency identification and big data techniques, in conjunction with a large harmonised dataset covering 30 economies. We report three novel stylised facts. First, a US monetary policy tightening has large contractionary effects onto both advanced and emerging economies. Second, flexible exchange rates cannot fully insulate domestic economies, due to movements in risk premia that limit central banks' ability to control the yield curve. Third, financial channels dominate over demand and exchange rate channels in the transmission to real variables, while the transmission via oil and commodity prices determines nominal spillovers.
    Keywords: monetary policy,trilemma,exchange rates,monetary policy spillovers
    Date: 2021

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.