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on Payment Systems and Financial Technology |
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Issue of 2022‒02‒07
eighteen papers chosen by |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This study establishes economic growth needed for supply-side mobile money drivers in developing countries to be positively related to mobile money innovations in the perspectives of mobile money accounts, the mobile phone used to send money, and the mobile phone used to receive money. The empirical evidence is based on Tobit regressions. For the negative net relationships that are computed, minimum economic growth thresholds are established above which the net negative relationships become net positive relationships. The following minimum economic growth rates are required for nexuses between supply-side mobile money drivers and mobile money innovations to be positive: (i) 6.109% (6.193%) of GDP growth for mobile connectivity performance to be positively associated with the mobile phone used to send (receive) money and (ii) 4.590 % (4.259%) of GDP growth for mobile connectivity coverage to be positively associated with the mobile phone used to send (receive) money. |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| JEL: | D10 D14 D31 D60 O30 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/013&r= |
| By: | Ciotti, Fabrizio (Université catholique de Louvain, LIDAM/CORE, Belgium); Hornuf, Lars; Stenzhorn, Eliza |
| Abstract: | This article reports on an investigation of the role of lock-in exploitation and the impact of reputation portability on workers’ switching behaviors in online labor markets. Online platforms using reputation mechanisms typically prevent users from transferring their ratings to other platforms, inducing lock-in effects and high switching costs and leaving users vulnerable to platform exploitation. With a theoretical model, in which workers in online labor markets are locked-in by their reputational data, we test the effects using an online lab-in-the-field decision experiment. In addition to comparing a policy regime with and without reputation portability, we vary lock-in exploitation using platform fees to consider how switching behavior might differ according to monetary motives and fairness preferences. Theoretically, this study reveals how reputational investments can produce switching costs that platforms can exploit. Experimentally, the results suggest that reputation portability mitigates lock-in effects, making users less susceptible to lock-in exploitation. The data further show that switching is driven primarily by monetary motives, but perceiving the fee as unfair also has a significant role. |
| Keywords: | Crowdsourcing, online markets, online labor, reputation portability, switch- ing costs |
| JEL: | J24 D91 L51 |
| Date: | 2021–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2021014&r= |
| By: | Santoro, Fabrizio; Munoz, Laura; Prichard, Wilson; Mascagni, Giulia |
| Abstract: | New digital technologies are now being widely used in Africa and lower-income countries (LICs). This has had an impact on tax administration, which has been increasingly digitised. Specifically Digital Financial Services (DFS) and digital IDs can improve tax administration. They have the potential to identify taxpayers more easily, communicate with them better, enforce and monitor compliance, and reduce compliance costs. While the potential is clear, existing literature indicates some of the barriers. Take-up of digital technology is still low due to barriers. Also, when taking up the technology, taxpayers often tend to adopt various measures to minimise tax payments. Within tax administrations there are challenges to accessibility and use of quality data. Mistakes can be made when launching digitisation, and there are regulatory and political barriers for effective use of digital technology. Given this context, this paper summarises key questions that are relevant for research and policy development to make more effective use of digital technology in tax administration in Africa and LICs |
| Keywords: | Governance, |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:17113&r= |
| By: | Lilah Shema Zlatokrilov (Bank of Israel) |
| Abstract: | In this work, we propose a way to examine the development of fintech banking in the previous decade (2010â2020) through a new index that measures innovation tendency. The index is based on textual analysis of financial statement relying on a sample of 127 banks from 18 countries for the years 2012â2019. The results were compared to the expected trends in the market as may be predicted by the "disruptive innovation" model, given that "fintech" represents the phenomenon known as technologically innovative disorder. The comparison indicates that the proposed index can explain the variance between banks and countries in terms of the development of innovation in banks. The index was found to be significant positively correlated with the granting of a regulatory license to a digital bank without branches. Thus a digital bank may have the effect of innovative disruption to traditional banking in the country in which it was established. While the index reflects a past situation, it shows that banks that have identified the introduction of the innovative disruption have preceded others by using "innovative" terms in their financial statements, so tracking the development of financial statements is of material forecasting value. Based on the literature on the subject, it can be said that if banksâ propensity for innovation increases as fintech becomes more established in the country, an innovation - supporting banking regulation is an important factor in maintaining the competition in banking services a head of the entry of the large technology companies, since the tendency of a regulated market is to wait for the regulator's instructions. |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2021.20&r= |
| By: | Muhammad Najib Razali; Rohaya Abdul Jalil; Ainur Zaireen Zainudin; Norhidayah Mohd Yunus; Azlina Mohd. Yassin |
| Abstract: | Land registration requires complex sensitive data which requires a decentralised environment. Current technology only concentrates on the database storage which is less secure and can be exposed to any misconduct. This is due to the characteristics of the database having problems with unstructured data and non-relational databases. Fraud is one the major problems and is currently a serious problem within the Malaysian land registration system. The blockchain technology creates public ledgers from all complex transactions that have high potential to replace the complicated systems with one simple database. Current practice at the land office has seen the land registration process being very centralised which requires only several persons to validate and authorise the data. Therefore, the need to identify the model of the blockchain technology for land registration is essential. In addition, the foundation of the blockchain technology for the land registration system in Malaysia should be undertaken. |
| Keywords: | blockchain; Land; Malaysia; Registration; Technology |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:lre:wpaper:lares-2021-4dqe&r= |
| By: | Maya Haran Rosen (Bank of Israel); Orly Sade |
| Abstract: | We use an experiment in Israel to compare the effect of short text messages sent via mobile phones on the actions of minority groups versus the general population regarding the âSavings for Every Childâ program. Financial institutions and regulators are increasingly using digital text messages to raise awareness or encourage participation in programs and initiatives. We study the effect of these messages on individual behavior, and the size of this effect for different segments of the population. Our unique setting and proprietary data reveal that the text message had an overall positive effect, but a significantly smaller effect on minority groups. By combining our proprietary data with a dedicated survey, we provide additional insights on potential barriers (low digital literacy, low financial literacy, and low trust) that contribute to the differential effect. The research points to the importance of using specific measures that focus on minorities in order to raise the success of government initiatives. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:boi:wpaper:2021.21&r= |
| By: | Martin Cimiterra (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Lionel Nesta (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | This article investigates whether blockchain technology corresponds to Schumpeter Mark 1 or Mark 2 industrial dynamics. Using an original database of 385 job offers in three different domains, namely, blockchain, biotechnology, and storekeeping, posted by 285 companies in France and Germany in early 2019, we explore whether the usual Schumpeter Mark 1 and 2 attributes apply to blockchains. We use ordered multinomial probit models to explain the level of work experience demanded by companies. To our knowledge, this contribution is one among very few attempts to identify the main features of blockchain industrial dynamics. |
| Date: | 2021–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03162880&r= |
| By: | Annette Broocks (European Commission - JRC); Zuzanna Studnicka (School of Economics, University College Dublin) |
| Abstract: | Over the last decade, watching videos online has become one of the primary uses of the internet, with streaming services accounting for more than 60% of global internet traffic. In this paper we use a novel data set on Netflix, the largest streaming platform worldwide, to estimate the patterns of catalogue availability (extensive margin) and number of clicks per title (intensive margin) across twenty countries. This data set also gives us a unique opportunity to estimate the importance of quality in viewing patterns. Our results show evidence of the gravity framework explaining both margins of Netflix watching. In addition, we find that there is a strong preference for domestic content, better-rated titles, and Netflix Original productions. These findings suggest that as Netflix produces more content, this will interact with its streaming dominance to provide a significant advantage in reaching viewers and promoting specific content. |
| Keywords: | Netflix; subscription video on demand; gravity equation; services trade |
| JEL: | F10 L82 Z10 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:decwpa:202112&r= |
| By: | Silvia Blasi (University of Verona); Edoardo Gobbo (University of Padova); Silvia Rita Sedita (University of Padova) |
| Abstract: | Smart cities are increasingly keen to establish a fruitful conversation with their citizens, to better capture their needs, and create virtual platforms for stimulating co-creation processes between government and users, with the final objective of increasing the quality of life and well-being. Social media applications provide an opportunity for dialogic communication, where, for a relatively low cost, a large amount of information reaching a wide audience can be published and exchanged in real time, fueling opportunities for citizens’ engagement. This study is based on a social media listening method, through a twitter data mining, which enabled disentangling different components of citizen engagement (popularity, commitment and virality) for a sample of Italian municipalities. In addition, we executed a deep analysis of the types of communication artifact exchanged and, through a content analysis of the tweets published by followers of the municipalities’ accounts, we identified main areas of interests of the social media conversations. Our results are based on the analysis of online conversations engaged by followers of twitter accounts of a sample of 28 Italian municipalities, chosen among the most active and densely populated. We show that municipalities tend to use the twitter account as a channel of communication to inform the population about a variety of topics, such as transports and public works, among the others. The volume of activity and number of followers (audience) vary from one municipality to the other. There is generally a negative relationship between the density of the population of a municipality and citizens’ engagement: smaller municipalities show a higher citizens’ engagement; the biggest ones, like Roma, Milan, Turin, Naples, are laggards. We finally conducted a city profiling process, which provides a representation of key citizens’ segments in terms of engagement. Policy makers could find in our work useful tools to increase citizens’ listening capacity. |
| Keywords: | smart cities, e-government, twitter, web scraping, social media listening, we-government |
| JEL: | M10 M38 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpmmos:wp2022_01.rdf&r= |
| By: | Olayiwola Oladiran; Adesola Sunmoni; Saheed Ajayi |
| Abstract: | Purpose: This paper analyses the relationship between the potential demand for purpose-built student accommodation (PBSA) properties and their online displayed attributes. Using data from 12 major UK cities, we analyse the effect of the online displayed property information on the popularity score of a PBSA.Design/Methodology: The data used is from an online student accommodation listing platform – student.com which contains tangible and non-tangible property attributes, and the data is analysed using a hedonic regression model.Findings: The results show that PBSAs’ tangible and non-tangible attributes are important to students in their online accommodation search, although, these attributes vary in impact. The study also reveals that failure to display key information of a PBSA may reduce the attractiveness of the property. The results suggest that PBSAs’ tangible and non-tangible attributes are important to students in their online accommodation search, although, these attributes vary in impact. The study also reveals that failure to display key information of a PBSA may make the property less attractive.Practical implications: These insights are valuable in developing student accommodation investment, development and management strategies. |
| Keywords: | Hedonic Model; Investment; online search; Operational real estate; proptech; student accommodation |
| JEL: | R3 |
| Date: | 2021–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:2021-004&r= |
| By: | Nick James |
| Abstract: | This paper uses new and recently established methodologies to study the evolutionary dynamics of the cryptocurrency market, and compares the findings with that of the equity market. We begin by applying random matrix theory and principal components analysis (PCA) to correlation matrices of both collections, highlighting clear differences in the eigenspectra exhibited. We then explore the heterogeneity of both asset classes, studying the time-varying dynamics of underlying sector behaviours, and determine the collective similarity within each collection. We then turn to a study of structural break dynamics and evolutionary power spectra, where we quantify the collective affinity in structural breaks and evolutionary behaviours of underlying sector time series. Finally, we implement two algorithms simulating `portfolio choice' dynamics to compare the effectiveness of stock selection and sector allocation in cryptocurrency portfolios. There, we highlight the importance of both endeavours and comment on noteworthy implications for cryptocurrency portfolio management. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.15321&r= |
| By: | Jaeger, Lena-Christin; Höhler Julia |
| Keywords: | Consumer/Household Economics, Marketing |
| Date: | 2020–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi20:305609&r= |
| By: | Julien Prat (CNRS - Centre National de la Recherche Scientifique, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique); Benjamin Walter |
| Date: | 2021–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03506522&r= |
| By: | Dan Cristian (Dimitrie Cantemir Christian University of Bucharest, Romania) |
| Abstract: | Aggression as a mechanism for conserving the human species has been incorporated into the human survival system since ancient times. The surrounding nature, the relationship between the members of the species, the relationship between them and the existing wild animals, related to the primary needs of food and shelter of man led to the development of the feeling of danger, the feeling of threat and therefore the need for a physical response attack and defense against elements that can destabilize life. Although these beginnings seem primitive to us today, the human being gaining supremacy over the administration of the planet a few centuries ago, they are still inscribed in our genes, caused by the time difference between the period of technological progress in human history and the beginning of the species’ existence the latter spanning a larger area of time compared to the modern era. However, in the short period of human civilization, more and more advanced mechanisms have been developed to inhibit its aggressive impulses, due to the new transformation into socio-intelligent, socially identifiable beings of the species. In the last period, the appearance and development of virtual social media has allowed man to hide his identity behind nicknames he has the opportunity to choose, thus giving permission to the aggressive mechanism inscribed in his genes to reappear. The paper aims to analyze the historical factors that determined the appearance and development of aggression, the transfer between legal norms for its inhibition and how it acts in the virtual space between members of the same digital community. |
| Keywords: | aggressivity, criminal law, psychology, criminal act, internet, Social Media, inhibition, human species, social values, society, bullying phenomenon |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0123&r= |
| By: | Alberto Hidalgo (IMT School for advanced studies); Massimo Riccaboni (IMT School for advanced studies); Francisco J. Velazquez (Universidad Complutense de Madrid) |
| Abstract: | This paper investigates the impact of the arrival of Airbnb on the local consumption amenities in Madrid. We exploit the exogenous variation created by the timing and the unequal distribution of Airbnb listings across the urban geography to identify its effects on food and beverage establishments. Using an instrumental variable strategy, we find positive local effects on both the number of restaurants and their employees: an increase in ten Airbnb rooms in a given census tract translates into one more restaurant, and the same increase in a given neighborhood generates nine new tourist-related employees. The results are robust to sample composition, spatial spillovers and alternative measures of local consumption amenities. This paper contributes to the literature on the economic impacts of the platform economy on urban areas by providing evidence of positive economic externalities from short-term rentals. |
| Keywords: | Consumption amenities; Short-term rentals; Tourism |
| JEL: | R10 R23 Z32 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:1/2022&r= |
| By: | Abigail R. A. Aiken; Jennifer E. Starling; Rebecca Gomperts |
| Abstract: | People in the US have been seeking self-managed abortions outside the formal health care system using medications obtained through online telemedicine. |
| Keywords: | telemedicine, health care, abortions |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:9f673b6c7d2049388e936a42784c9036&r= |
| By: | Oliver Alexander (Accenture); Jeff Borland (Department of Economics, The University of Melbourne); Andrew Charlton (Accenture); Amit Singh (Accenture) |
| Abstract: | We investigate the labour market for Uber drivers in Australia using administrative and survey data. Uber drivers’ total hours of work and driving schedules exhibit substantial heterogeneity and week-to-week variation. We identify several pathways to driving with Uber, associated with different income and job satisfaction outcomes. Drivers for whom Uber is a supplemental source of earnings tend to have increased incomes after joining Uber and express above-average levels of job satisfaction; whereas drivers who are looking for other work have lower incomes and express below-average levels of job satisfaction. Drivers in Australia are relatively more likely to be using Uber to earn supplemental income rather than as their main source of income, similar to the United States, but different from London and France. We find that average earnings (after costs) of Uber drivers in Sydney in 2018 were $21.00 per hour. Variability in earnings between drivers depends primarily on differences in the number of trips per hour – which in turn is related to job tenure, time and location of driving, and the proportion of offered trips accepted by drivers. |
| Keywords: | gig economy, Uber, working time, earnings, job satisfaction |
| JEL: | J40 M50 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2021n18&r= |
| By: | William Barnett (Department of Economics, University of Kansas and Center for Financial Stability, New York City); Taniya Ghosh (Indira Gandhi Institute of Development Research (IGIDR), Gen. A. K. Vaidya Marg, Filmcity Road, Mumbai, 400065, India); Masudul Hasan Adil (Institute Postdoctoral Fellow, Humanities and Social Sciences-Economics, Indian Institute of Technology Bombay (IITB), Mumbai 400076, India) |
| Abstract: | We revisit the issue of stable demand for money, using quarterly data for the European Monetary Union, India, Israel, Poland, the UK, and the US. We use a modern version of the same linear time-series macro-econometric modeling and specification approach that had previously cast doubt on money demand stability. Autoregressive distributed lag (ARDL) cointegration models are used in the study to establish a long-term relationship among real money balances, real output, interest rate, and real effective exchange rate. For all the countries analyzed, evidence of stable demand for money is found. Broad money in general is better at capturing a stable demand for money than narrow money. The The stability results are especially strong, when broad Divisia money is used instead of its simple sum counterpart. Our results are consistent with the large literature on the Barnett critique, which is based on a different methodological tradition that employs micro-econometric modeling of integrable consumer demand systems. That literature has never found the demand for monetary services, measured using reputable index number and aggregation theory, to be any more difficult to model or less stable than the demand for any other good or service in the economy. |
| Keywords: | Narrow money demand, broad money demand, simple-sum monetary aggregates, Divisia monetary aggregates, ARDL cointegration approach |
| JEL: | C23 E41 E52 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:kan:wpaper:202204&r= |