nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2022‒12‒19
forty-one papers chosen by

  1. Internet infrastructure and competition in digital markets By Hanspach, Philip
  2. E-Payment Technology and Business Finance : A Randomized Controlled Trial with Mobile Money (revision of CentER DP 2019-032) By Dalton, Patricio; Pamuk, H.; Ramrattan, R.; van Soest, Daan; Uras, Burak
  3. Personal Privacy Protection Problems in the Digital Age By Zhiheng Yi; Xiaoli Chen
  4. Mobile money and household consumption volatility By Ablam Estel Apeti
  5. Stablecoins and Their Risks to Financial Stability By Cameron MacDonald; Laura Zhao
  6. Breaking Down the Market for Misinformation By Gonzalo Cisternas
  7. Lending and monitoring: Big Tech vs Banks By Bouvard, Matthieu; Casamatta, Catherine; Xiong, Rui
  8. Forecasting Bitcoin volatility spikes from whale transactions and CryptoQuant data using Synthesizer Transformer models By Dorien Herremans; Kah Wee Low
  9. Social networks and resilience in emerging labor markets By Paola Tubaro
  10. Safeguarding Competition in Digital Markets: A Comparative Analysis of Emerging Policy and Regulatory Regimes By Prado, Tiago S.
  11. Information for Banking Efficiency in Africa: Evidence from Income Levels and Legal Origins By Simplice A. Asongu; Nicholas M. Odhiambo
  12. Platform Choices: Impact on Startup Performance By Ajit, Tejaswi Channagiri; Jamison, Mark A.
  13. Elementary Bitcoin economics: from production and transaction demand to values By Misha Perepelitsa
  14. Regulating Algorithmic Learning in Digital Platform Ecosystems through Data Sharing and Data Siloing: Consequences for Innovation and Welfare By Krämer, Jan; Shekhar, Shiva; Hofmann, Janina
  15. Why do elderly people feel negative about the use of self-service technology and how do they cope with the negative emotions? By Nam, Jinyoung; Kim, Seongcheol
  16. Real estate tokenization as an alternative investment solution By Berentsen, Aleksander; Markheim, Marina
  17. International Variation in Regulations Related to Initial Coin Offerings: Preliminary Findings and A Research Agenda By Kshetri, Nir
  18. Motif-aware temporal GCN for fraud detection in signed cryptocurrency trust networks By Chong Mo; Song Li; Geoffrey K. F. Tso; Jiandong Zhou; Yiyan Qi; Mingjie Zhu
  19. How Abundant Are Reserves? Evidence from the Wholesale Payment System By Gara Afonso; Darrell Duffie; Lorenzo Rigon; Hyun Song Shin
  21. The Limits of onetary Economics: On Money as a Latent Medium of Exchange By Ricardo Lagos; Shengxing Zhang
  23. Why would the users of Google's cloud services intend to switch to alternative services? By Lim, Chulmin; Kim, Seongcheol
  24. An analysis of the content-neutrality approach in European audiovisual market regulation. The case of potential harmful content for minors By Arcos, MTeresa; Feijóo, Claudio
  25. Financial and regulatory assessment of Mobile Network Sharing as a trigger of cost efficient 5G rollout in CEE By Földes, Gábor
  26. Women Online: A Study of Common Service Centers in India Using a Capability Approach By Rajeev, Meenakshi; Bhandarkar, Supriya
  27. How is mobile broadband intensity affecting CO2 emissions? – A macro analysis By Edquist, Harald; Bergmark, Pernilla
  28. Does Fintech Lending Lower Financing Costs? Evidence From An Emerging Market By Jose Renato Haas Ornelas; Alexandre Reggi Pecora
  29. Internet of Things and the challenges for cross-border network slicing in 5G-based smart networks By Knieps, Günter
  30. When survey science met web tracking: presenting an error framework for metered data By Bosch Jover, Oriol; Revilla, Melanie
  31. Consumer credit in the age of AI: Beyond anti-discrimination law By Langenbucher, Katja
  32. Digital skills for all? From computer literacy to AI skills in online job advertisements By Matteo Sostero; Songül Tolan
  33. Dollar-Yuan Battle in the World Trade Network By C\'elestin Coquid\'e; Jos\'e Lages; Dima L. Shepelyansky
  34. Investigating the relationship of disguised socialbots and disinformation threat in Taiwan By Lin, Trisha T. C.
  35. Differentiation Strategy for Firms: Online Ad versus Mass Media Ad By Fujisawa, Chieko; Kasuga, Norihiro
  36. Peer-to-peer solar and social rewards: evidence from a field experiment By Carattini, Stefano; Gillingham, Kenneth T.; Meng, Xiangyu; Yoeli, Erez
  37. My Browser is not a Billboard: Experimental Evidence on Ad-blocking Adoption and Users' Acquisition of Information By Fourberg, Niklas; Tas, Serpil; Wiewiorra, Lukas
  38. #IamLGBT: Social Networks and Coming Out By Jan Gromadzki; Przemysław Siemaszko
  39. Bilateral Remittance Inflows to Asia and the Pacific: Countercyclicality and Motivations to Remit By Kim, Kijin; Ardaniel, Zemma; Kikkawa, Aiko; Endriga, Benjamin
  40. How digital technology is reshaping the art of management By Maria Cesira Urzì Brancati; Maurizio Curtarelli; Sara Riso; Sara Baiocco
  41. Effects of Covid-19 Pandemic on Online Shopping Behavior in Iran By Ghaffari, Reza; Cheng, Kequn

  1. By: Hanspach, Philip
    Abstract: Large digital platform companies increasingly integrate vertically by building Internet infrastructure, such as edge computing facilities, content delivery networks, or submarine cables. These investments enable new services while changing their bargaining power towards the upstream supplier. I model competing investment incentives in Internet infrastructure for an upstream player (e.g., an Internet Service Provider) and a large downstream platform and its effects on competition with smaller downstream platforms without proprietary infrastructure. Investment incentives increase discontinuously both upstream and downstream when the downstream platform has the larger network. With symmetric investment costs, the downstream platform will invest more than a pure upstream player. I discuss the model implications for net neutrality, network access regulation, and efficient side payments between platform and upstream industry.
    Keywords: platforms,multi-sided markets,competition policy,net neutrality,Internet,telecommunications infrastructure
    JEL: L13 L42 L51 L63 L86
    Date: 2022
  2. By: Dalton, Patricio (Tilburg University, Center For Economic Research); Pamuk, H. (Tilburg University, Center For Economic Research); Ramrattan, R.; van Soest, Daan (Tilburg University, Center For Economic Research); Uras, Burak (Tilburg University, Center For Economic Research)
    Keywords: SME Finance; financial integration; Mobile-Money; E-Payments
    Date: 2022
  3. By: Zhiheng Yi; Xiaoli Chen
    Abstract: With the development of Internet technology, the issue of privacy leakage has attracted more and more attention from the public. In our daily life, mobile phone applications and identity documents that we use may bring the risk of privacy leakage, which had increasingly aroused public concern. The path of privacy protection in the digital age remains to be explored. To explore the source of this risk and how it can be reduced, we conducted this study by using personal experience, collecting data and applying the theory.
    Date: 2022–11
  4. By: Ablam Estel Apeti (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)
    Abstract: Access to financial services plays an important role in household welfare, as it provides access to investment opportunities, savings, consumption smoothing, and insurance against unexpected shocks. In developing economies where formal financial services exclude nearly half of the population, the development of mobile cellular offers an exciting avenue to provide poor households with access to basic financial services through mobile money. In this study, we analyze the effect of this financial innovation, i.e., mobile money, on household consumption volatility. Our results show that mobile money reduces household consumption volatility. Finally, we identify financial inclusion and migrant remittances as potential major transmission channels.
    Abstract: L'accès aux services financiers joue un rôle important dans le bien-être des ménages, car il permet d'accéder à des opportunités d'investissement, d'épargne, de lissage de la consommation et d'assurance contre des événements inattendus. Dans les économies en développement où les services financiers formels excluent près de la moitié de la population, le développement de la téléphonie mobile donne une opportunité aux ménages pauvres d'accéder aux services financiers de base par le mobile money. Dans cette étude, nous analysons l'effet de cette innovation financière, c'est-à-dire le mobile money, sur la volatilité de la consommation des ménages. Nos résultats soulignent qu'elle réduit cette volatilité. Pour expliquer ce résultat, nous identifions l'inclusion financière et les transferts des migrants comme de potentiels canaux de transmission majeurs.
    Keywords: Mobile money services,Mobile money,Volatilité,Pays en dévelopement,Consommation des ménages
    Date: 2022–11–10
  5. By: Cameron MacDonald; Laura Zhao
    Abstract: The market for fiat-referenced cryptoassets, commonly known as stablecoins, has expanded rapidly in recent years alongside the growth of the cryptoasset ecosystem. In fact, the market capitalization of stablecoins increased by more than 30 times since the beginning of 2020. What risks could stablecoins pose to the financial system? We examine price stabilization mechanisms of stablecoins as well as the current and potential use cases of stablecoins. We then analyze the risks stemming from both. We argue that the price stabilization mechanisms of current stablecoins could lead to the risk of confidence runs, which can propagate to broader cryptoasset markets and the traditional financial sector. We also argue that stablecoins can contribute to risks to financial stability by facilitating the buildup of leverage and liquidity mismatches in decentralized finance. Such risks cannot be addressed by regulating the safety and soundness of stablecoins alone without adequately regulating broader activities in the crypto ecosystem. Finally, we explore the potential implications of the substitution of cash and bank deposits for stablecoins in payments and the financial system more broadly, particularly the current system of bank-intermediated credit and for monetary policy.
    Keywords: Digital currencies and fintech; Financial institutions; Financial markets; Financial stability; Financial system regulation and policies
    JEL: E44 E58 G23
    Date: 2022–11
  6. By: Gonzalo Cisternas
    Abstract: The spread of misinformation online has been recognized as a growing social problem. In responding to the issue, social media platforms have (i) promoted the services of third-party fact-checkers; (ii) removed producers of misinformation and downgraded false content; and (iii) provided contextual information for flagged content, empowering users to determine the veracity of information for themselves. In a recent staff report, we develop a flexible model of misinformation to assess the efficacy of these types of interventions. Our analysis focuses on how well these measures incentivize users to verify the information they encounter online.
    Keywords: misinformation; social media; news verification; regulation
    Date: 2022–11–28
  7. By: Bouvard, Matthieu; Casamatta, Catherine; Xiong, Rui
    Abstract: We show that by lending to merchants and monitoring them, an e-commerce platform can price-discriminate between merchants with high and low financial constraints: the platform offers credit priced below market rates and designed to select merchants with lower capital or collateral while simultaneously increasing the platform’s access fees. The credit market then becomes endogenously segmented with banks focusing on less financially constrained borrowers. Lending by the platform expands with its monitoring efficiency but can arise even when the platform is less efficient than banks at monitoring. Platform credit benefits more financially constrained merchants as well as buyers, but can hurt less financially constrained merchants if cross-side network effects with buyers are too small. The platform’s propensity to offer credit and the financial inclusion of more constrained merchants depends on the platform’s market power.
    Keywords: Big Tech; banks; two-sided markets; financial constraints; financial inclusion;; market power
    Date: 2022–11
  8. By: Dorien Herremans; Kah Wee Low
    Abstract: The cryptocurrency market is highly volatile compared to traditional financial markets. Hence, forecasting its volatility is crucial for risk management. In this paper, we investigate CryptoQuant data (e.g. on-chain analytics, exchange and miner data) and whale-alert tweets, and explore their relationship to Bitcoin's next-day volatility, with a focus on extreme volatility spikes. We propose a deep learning Synthesizer Transformer model for forecasting volatility. Our results show that the model outperforms existing state-of-the-art models when forecasting extreme volatility spikes for Bitcoin using CryptoQuant data as well as whale-alert tweets. We analysed our model with the Captum XAI library to investigate which features are most important. We also backtested our prediction results with different baseline trading strategies and the results show that we are able to minimize drawdown while keeping steady profits. Our findings underscore that the proposed method is a useful tool for forecasting extreme volatility movements in the Bitcoin market.
    Date: 2022–10
  9. By: Paola Tubaro (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, CNRS - Centre National de la Recherche Scientifique, ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique - Ecole Nationale de la Statistique et de l'Analyse Economique, IP Paris - Institut Polytechnique de Paris)
    Abstract: The recent emergence of digital platforms as labor market intermediaries disrupts collective work practices, fostering fragmentation and individualized subcontracting. In these environments where isolation dominates, how do social networks operate, and how do they support social resilience? And how can we, as researchers, apprehend them? To address these questions, this chapter reviews insights from socioeconomic studies of networks, discusses their applicability to platforms, compares and contrasts them to existing evidence on platform work. The analysis confirms that overall, technologyenabled platform intermediation restrains sociability and limits interactions, but specific cases where networking has been possible highlight the fundamental advantages it may have for workers, and suggest directions for future research and policy action.
    Keywords: Labor markets,digital platforms,decent work,economic networks,formal/informal networks,multi-level networks
    Date: 2022–11
  10. By: Prado, Tiago S.
    Abstract: This paper presents a comparative analysis of alternative competition policy and regulatory regimes that are proposed to safeguard competition in the digital economy. We review the causes of concentration in several digital markets, and differentiate the objectives of promoting competition in, and for incumbent digital platforms. Then, we analyze five regimes currently suggested in the research literature and explored by practitioners, ranging from precautionary competition policy and traditional ex ante regulatory remedies to ex post competition policy enforcement, ex post regulation and various self-regulation mechanisms. In a time when policy imitation is widespread, our main conclusion is that policy and regulatory regimes, to be effective to promote competition and investment in digital markets, must observe country-specific conditions and challenges. No single approach fits all conditions. This analysis should help policymakers to have a clearer picture on how to design measures to promote competition in the platform economy considering their local context.
    Keywords: digital platforms,competition,policy,regulation,antitrust,innovation
    JEL: L1 L4 L5 D6 O2
    Date: 2022
  11. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: The study assesses how information sharing through mobile phones affects banking system efficiency in Africa with particular emphasis on income levels (middle-income versus low-income countries) and legal origins (English Common law versus French Civil law countries). The focus is on 53 African countries with data for the period 1996-2019, and the empirical evidence is based on Quantile regressions which enable the study to assess the nexus throughout the conditional distribution of banking system efficiency. The following findings are established: (i) mobile phone penetration promotes banking system efficiency in the 25th quantile and the median of banking system efficiency in low-income countries, while for middle-income countries, it is significant exclusively in the bottom quantile (i.e., 10th quantile). (ii) Except for the highest (i.e., 90th) quantile in which the effect of the mobile phone is not significant in English Common law countries, the impact is significant throughout the conditional distribution of banking system efficiency in Common law countries. (iii) As for French Civil law countries, the nexus is only significant in the median and highest (i.e., 90th) quantile of the conditional distribution of banking system efficiency. Policy implications are discussed.
    Keywords: Allocation efficiency; Information asymmetry; Mobile phones
    JEL: G20 G29 L96 O40 O55
    Date: 2022–01
  12. By: Ajit, Tejaswi Channagiri; Jamison, Mark A.
    Abstract: We study the impact of platform choice (iOS vs Android) for firms that build apps for smart phones. We merge app data from Sensor Tower® with financial performance data from Crunchbase®. We find that apps that begin on Android have greater average downloads per month. However, apps with the greatest average downloads per month are likely to have begun on iOS. On each platform, the categories that attracted most app-based firms had greater skewness and kurtosis in average downloads per month. When endogenizing the choice of platform using propensity-score matching, firms that prefer to launch on iOS first seem likelier than those that launch on Android first to not receive any funding at all. However, they seem to receive greater funding in USD per firm.
    Keywords: platforms,innovation,competition
    JEL: L13 L15 L51
    Date: 2022
  13. By: Misha Perepelitsa
    Abstract: In this paper we give an elementary analysis of economics of Bitcoin that combines the transaction demand by the consumers and the supply of hashrate by miners. We argue that the decreasing block reward will have no significant effect on the exchange rate (price) of Bitcoin and thus the network will be transitioning to a regime where transaction fees will play a bigger part of miners' revenue. We consider a simple model where consumers demand bitcoins for transactions, but not for hoarding bitcoins, and we analyze market equilibrium where the demand is matched with the hashrate supplied by miners. Our main conclusion is that the exchange rate of Bitcoin cannot be determined from the market equilibrium and so our arguments support the hypothesis that Bitcoin price has no economic fundamentals and is free to fluctuate according to the present demand for hoarding and speculation. We point out that increasing fees bear the risk of Bitcoin being outcompeted by its main rival Ethereum, and that decreasing revenues to miners depreciate the perception of Bitcoin as a medium for store value (hoarding demand) which will have effect its exchange rate.
    Date: 2022–11
  14. By: Krämer, Jan; Shekhar, Shiva; Hofmann, Janina
    Abstract: Algorithmic learning gives rise to a data-driven network effects, which allow a dominant platform to reinforce its dominant market position. Data-driven network effects can also spill over to related markets and thereby allow to leverage a dominant position. This has led policymakers to propose data siloing and mandated data sharing remedies for dominant data-driven platforms in order to keep digital markets open and contestable. While data siloing seeks to prevent the spillover of data-driven network effects generated by algorithmic learning to other markets, data sharing seeks to share this externality with rival firms. Using a game-theoretic model, we investigate the impacts of both types of regulation. Our results bear important policy implications, as we demonstrate that data siloing and data sharing are potentially harmful remedies, which can reduce the innovation incentives of the regulated platform, and can lead overall lower consumer surplus and total welfare.
    Keywords: Data-driven network effects,algorithmic learning,regulation,data sharing,data siloing
    Date: 2022
  15. By: Nam, Jinyoung; Kim, Seongcheol
    Abstract: While Covid-19 has accelerated the digital transformation, increasing labour costs and 52-hour workweek rules are replacing human labor with self-service technologies (SSTs). Self-service technology is increasingly implemented and is expected to become a usual phenomenon in restaurant settings. However, the elderly who have relatively lower levels of digital literacy are being excluded from the services which can alleviate the economic and social difficulties of their daily lives. This study thus aims to explain how elderly users feel about and react to the self-service technology in fast-food restaurants. We conducted an off-site survey with individuals who have experience in using self-service technology, and we analyzed the model using the PLS-SEM method by SmartPLS 3.0. The results showed that reduction, perceived ease of use of SST, and perceived time pressure were crucial predictors of viewers' emotions toward the self-service technology. Perceived physical condition and perceived crowding, however, did not have significant effects on users' emotional responses. This study empirically investigates individuals' negative feelings toward and coping strategies for the difficulties of the SST. It highlights the necessity of collaboration among government, industry, and academia for the development of a nationwide digital inclusion policy that can address the digital divide.
    Keywords: Self-service technology,Restaurants,Elderly users,Negative emotions,Coping behavior
    Date: 2022
  16. By: Berentsen, Aleksander; Markheim, Marina
    Abstract: Tokenization refers to the process of creating a virtual representation of a real asset by creating fungible tokens which enables fractional ownership. If such tokens are created on a public and permissionless blockchain such as the Ethereum blockchain, they are immediately tradeable worldwide 24/7. Established token standards and immediate settlement are further benefits of this novel technology. Tokenization has the potential to remedy the illiquidity problems of real estate investments. However, outdated regulatory frameworks and regulatory uncertainties currently still limit a broad adoption of the technology.
    Keywords: blockchain technology, smart contracts, fractional ownership, tokenization of real estate, security token, token regulation
    JEL: G19 R31 R32 R39
    Date: 2022
  17. By: Kshetri, Nir
    Abstract: As prior researchers have suggested a firm's success in an international market depends on how well its strategy fits with the nonmarket environment such as formal institutions. This paper examines the determinants of formal institutions around new areas of economic activities. Specifically, we propose a framework for understanding how the quality of formal institutions to promote entrepreneurship drives the focus of such institutions with respect to initial coin offering (ICO), which is emerging as a popular fundraising method. The paper also analyzes how nonmarket factors such as a jurisdiction's tax haven nature, regulators' perceptions of ICOs as threats to national or political interests and trade and industry associations might moderate the relations between quality of institutions and the focus of such institutions with respect to ICOs. We utilize inductive analysis. A key finding of this study is that an economy's quality of entrepreneurship-related institutions, perceived threats to national/political interests and tax haven nature lead to different policy orientations. Consequently, regulators assign different importance to promote crypto-entrepreneurship and to deal with associated risks. Regulators with main focus on promoting crypto-ventures have taken measures to enrich blockchain ecosystem and provided tax and non-tax incentives to attract such ventures. Regulators with main focus on dealing with risks of crypto-ventures are relying on regulatory sandbox and close regulatory monitoring of such ventures.
    Keywords: blockchain,crypto-currencies,crypto-ventures,initial coin offerings,regulatory sandboxes,tax havens
    Date: 2022
  18. By: Chong Mo; Song Li; Geoffrey K. F. Tso; Jiandong Zhou; Yiyan Qi; Mingjie Zhu
    Abstract: Graph convolutional networks (GCNs) is a class of artificial neural networks for processing data that can be represented as graphs. Since financial transactions can naturally be constructed as graphs, GCNs are widely applied in the financial industry, especially for financial fraud detection. In this paper, we focus on fraud detection on cryptocurrency truct networks. In the literature, most works focus on static networks. Whereas in this study, we consider the evolving nature of cryptocurrency networks, and use local structural as well as the balance theory to guide the training process. More specifically, we compute motif matrices to capture the local topological information, then use them in the GCN aggregation process. The generated embedding at each snapshot is a weighted average of embeddings within a time window, where the weights are learnable parameters. Since the trust networks is signed on each edge, balance theory is used to guide the training process. Experimental results on bitcoin-alpha and bitcoin-otc datasets show that the proposed model outperforms those in the literature.
    Date: 2022–11
  19. By: Gara Afonso; Darrell Duffie; Lorenzo Rigon; Hyun Song Shin
    Abstract: Before the era of large central bank balance sheets, banks relied on incoming payments to fund outgoing payments in order to conserve scarce liquidity. Even in the era of large central bank balance sheets, rather than funding payments with abundant reserve balances, we show that outgoing payments remain highly sensitive to incoming payments. By providing a window on liquidity constraints revealed by payment behavior, our results shed light on thresholds for the adequacy of reserve balances. Our findings are timely, given the ongoing shrinking of central bank balance sheets around the world in response to inflation.
    Keywords: real-time gross settlement; quantitative tightening; Balance sheet management; reserve balances
    JEL: E42 E44 E52 E58 G21
    Date: 2022–11–01
  20. By: Uliaaa, Uliaaa
    Abstract: The development of technology is now increasingly sophisticated, all people are familiar with the current technology which can be used to generate profits in the world of business. Including the male shirt entrepreneurs in Botekan village who are now also following the development of technology until they are vying to make a profit with the strategies of their respective entrepreneurs. The author's purpose in conducting this study is (1) to find out the strategies used by entrepreneurs to market some of their products (2) to find out the extent of the positive impact of marketing through social media (3) to convey to readers to know marketing strategies and the positive impact on marketing through social media. The method used by the author is a qualitative descriptive method which tends to use analysis by describing and defining existing objects. The results of this study are that three entrepreneurs have strategies in marketing, the three entrepreneurs use marketing strategies through social media, two of them use social media on the Shopee application and one entrepreneur uses the Tiktok application. By using this strategy, the brands owned by the company will be easier to be famous and that is one of the strategies to develop the company. With these applications, entrepreneurs can interact with consumers easily and effectively, and entrepreneurs can get many benefits.
    Date: 2022–06–19
  21. By: Ricardo Lagos (New York University); Shengxing Zhang (London School of Economics (LSE))
    Abstract: We formulate a generalization of the traditional medium-of-exchange function of money in contexts where there is imperfect competition in the intermediation of credit, settlement, or payment services used to conduct transactions. We find that the option to settle transactions with money strengthens the stance of sellers of goods and services vis-a-vis intermediaries, and show this mechanism is operative even for sellers who never exercise the option to sell for cash. These latent money demand considerations imply that in general, in contrast to current conventional wisdom in policy-oriented research in monetary economics, monetary policy remains effective through medium-of-exchange transmission channels—even in highly developed credit economies where the share of monetary transactions is negligible.
    Keywords: Cashless, credit, liquidity, money, monetary policy
    JEL: D83 E52 G12
    Date: 2021–02
  22. By: Fatih, Muhammad Danil
    Abstract: Along with the development of the era of increasingly advanced technology, technology is increasingly developed and sophisticated in the current digital age. And the internet is getting more expansive, and more and more users are even becoming a staple for all of us. So that the community, especially the millennial or youth generations, already understand the technology and the internet. In this day and age, people want the palace to be as easy as possible. And now there is such a thing as an online business at a shop. The purpose of this study was to learn about the social practice of online business at a young age in the village of Pagumenganmas. A descriptive survey was conducted to explain the social rules of online business at Shopee for the youth of the Pagumenganmas village. Qualitative and descriptive research methods. On the other hand, qualitative analysis is a research method that produces descriptive data that can be analyzed. In this study, the planting of youth social practices in Karangdadap District, Pekalongan Regency, was analyzed using Talcott Parsons' structural-functional theory. The basic assumption of Structural Functionalism theory holds that society is a system. A social system consists of interdependent and interdependent elements in a balanced way. If any element changes, the other factors will also be modified. However, societies are interdependent and capable of creating consensus and social order. Of course, like running a business or anything else in life, being successful with an online business at a young age still requires mental preparation and habit adjustments to speed up the journey to success.
    Date: 2022–06–19
  23. By: Lim, Chulmin; Kim, Seongcheol
    Abstract: As the amount of data collected by individuals increases and working and education environments are digitalized, the demand for personal cloud storage services (PCSS) has been expanded as well. Users can upload their data to the storage in the cloud service and use or share the data seamlessly through multiple devices. Global service providers such as Google and Microsoft have led this market based on their high cloud computing technology and extensive user network, providing free basic service to all users. Google, however, has changed its Google Photos from free to paid service according to the new cloud service policy. Considering diverse opinions and evaluations on the change, this study aims to analyze the users' response to Google's PCSS and service charging policy. This study examines the factors affecting cloud service users' intention to switch to alternative services based on the push-pullmooring (PPM) framework in the context of South Korea. The result of this study provides some practical and policy implications for cloud service providers, IT-related institutions, and government.
    Keywords: Google cloud service,Personal cloud storage service (PCCS),Switching intention,Push-Pull-Mooring (PPM) framework
    Date: 2022
  24. By: Arcos, MTeresa; Feijóo, Claudio
    Abstract: Boundaries set between legacy audiovisual and digital content services are blurring nowadays. However, the legal framework applicable to those services is still rather different to such an extent it is recognized as divergent, particularly regarding the liability regime of the service providers. Among the examples of these distinct regimes, the protection for minors with access to potentially harmful content regarding their moral and mental growth is used in the paper to analyse the lack of coherence in the legal treatment of audiovisual content, in the EUin particular. From the analysis, the paper concludes that the Digital Services Act, as the latest step in theevolution of the legal framework for the digital services in the EU still seems unable to restore the required level of coherence and level the playing field for audiovisual content. and, therefore, lacks content-neutrality from the perspective of technology used for the distribution of content. Therefore, the paper foresees that more legislative initiatives will be needed to avoid the negative effects of the difficulties of existing audiovisual legislative framework enforcement and perceived lack of trust in law.
    Keywords: digital services regulation,audiovisual regulation,neutrality,content-neutrality,technology-neutrality European audiovisual market,Digital Single Market,liability intermediaries,AVSMD,DSA,harmful content,minors
    Date: 2022
  25. By: Földes, Gábor
    Abstract: Telecommunication sector faces to parallel investments into both fiber and 5G, however due to monetization challenges, return on investments often lag behind normal profit expectations. Co-investment, like mobile network sharing can promote cost efficiency, however cooperation raises regulatory concerns related to competition and innovation in the EU. The purpose of this paper to assess the Czech and Hungarian mobile network sharing agreements in CEE that both show higher degree of cooperation, therefore not cleared by the competition regulations, however has been placed in unchanged form for 8 years. The research question is to assess the procompetitive and anticompetitive theoretical aspects and actual impacts of opposed cooperation in terms of net effect, whether benefits outweigh potential drawbacks in particular to foreseen 5G rollout. The research methodology covers the empirical comparison of Czech and Hungarian market data related to market shares, prices and data traffic volume, as well as network quality data on coverage and capacity in 2014-2021-time frame. The main finding is that, although live network sharing agreements have been opposed, main anticompetitive effects could not be justified, and majority of procompetitive benefits fails to be rejected, with the exemption of efficiency gains pass through customers that remains unclear. Despite of benefits may outweigh potential drawbacks even in these not recommended cases, due to lack of regulatory clearance, the 5G rollout launched without sharing, causing social welfare loss. The originality of the paper that it provides an empirical research on such a live network sharing case that is not recommended and not cleared, as sharing contains active network elements and even spectrum, highlighting that even these cases' procompetitive advantages may outweigh anticompetitive ones.
    Keywords: 5G,mobile network sharing,cost efficiency,coopetition,competition regulation
    Date: 2022
  26. By: Rajeev, Meenakshi (Asian Development Bank Institute); Bhandarkar, Supriya (Asian Development Bank Institute)
    Abstract: Income-generating activities performed by women are an effective way to reduce gender deprivations and disparities. In the constrained familial and community settings of developing economies, the online platform can be an appropriate means for women to carry out economic activities. In this context, certain important initiatives taken by the Government of India such as the creation of Common Service Centers are worth studying. We critically evaluate such revolutionary online platform-based entrepreneurial initiatives using the capability approach developed by Amartya Sen. We examine how women-run businesses use the online platform and what determines their success, inputs, capabilities, and conversion factors through a case study method. Further, enterprise-level National Sample Survey Organization data at the all-India level are analyzed to show that the states that have a higher level of gender inequality are also the regions with a lower level of information and communication technology usage by women-run enterprises.
    Keywords: common service centers; village-level entrepreneurs; capabilities; online platform; women-run enterprises
    JEL: L26
    Date: 2022–06
  27. By: Edquist, Harald; Bergmark, Pernilla
    Abstract: This paper investigates the association between relative mobile broadband penetration and carbon dioxide (CO2) emissions globally. The study is based on 181 countries for the period 2002-2020. The results indicate an initial increase in CO2 emissions for a country at an average emission level once mobile broadband is introduced. Possible explanations might be initial investment in network infrastructure and increased consumption of electricity. However, on average for the period 2002-2020 the continuous relationship between mobile broadband (defined as speeds of at least 256 kbps) and CO2 is significantly negative, i.e. emissions at a country level significantly reduce as mobile broadband penetration increase. Based on a two-stage model and controlling for fixed broadband and four addition control variables (i.e. population density, electricity consumption from fossil fuel, industry as a share of GDP and a regulation index), we are able to conclude that on average a 10 percentage points increase in mobile broadband penetration causes a 7 percent reduction of CO2 emissions per capita (given that the instrumental variable strategy, as assumed, identifies causal effects). Thus, the results show that investments in mobile infrastructure over longer periods of time can contribute to mitigating climate change.
    Keywords: Mobile broadband,carbon dioxide (CO2),climate change
    JEL: O13 O33 Q54
    Date: 2022
  28. By: Jose Renato Haas Ornelas; Alexandre Reggi Pecora
    Abstract: Using proprietary data of virtually all unsecured working capital loans to small businesses in Brazil, we find that online Peer-to-Peer (P2P) lenders focus on smaller and riskier firms already served by banks. P2P clients get lower interest rates compared to traditional banks. Once they borrow from P2Ps, they find a lower rate on subsequent bank loans, indicating that banks try to recapture runaway borrowers. In response to P2P entry, incumbent banks in oligopolistic markets decrease their lending rates by 2.5 percentage points and expand credit to older firms with difficulty accessing credit. We rationalize these findings in a structural IO model of the banking sector, where banks and P2Ps have different profit functions and compete for clients with risk heterogeneity. We use the estimated model to calculate welfare gains. P2Ps significantly increase social welfare in oligopolistic markets by offering lower interest rates to riskier borrowers and forcing the banks to do the same. Welfare gains range from 10% of the local output in municipalities with only one incumbent bank to 1% in those with five banks.
    Date: 2022–10
  29. By: Knieps, Günter
    Abstract: The transition towards 5G-based smart network industries is concomitant with a fundamental change of the traditional physical infrastructures driven by digitalization which pervades all decision-relevant components of the infrastructure value chains. The goal of this paper is to develop a network economic foundation for 5G based network slicing based on a generaliza-tion of the concept of virtual networks combining a required sequence of virtual networks in order to fulfill the necessities of smart network industries. Whereas interoperability and inter-connection between different virtual networks are not standardized significant standardization efforts via network slicing can be observed in particular from the perspective of end-to-end QoS guarantees. 5G-based big data use cases with cross-border challenges for network slic-ing, and the subsequent interoperability of virtual networks, enable tremendous potential for innovation in smart physical infrastructures. The 5G-based European Future Railway Mobile Communication System (FRMCS) and cross-border oriented, 5G-based connected, coopera-tive, and automated mobility applications (CCAM) are investigated with a large and open set of heterogeneous use cases begging for cross-border standardization of QoS-differentiated network slices.
    Date: 2022
  30. By: Bosch Jover, Oriol; Revilla, Melanie
    Abstract: Metered data, also called web-tracking data, are generally collected from a sample of participants who willingly install or configure, onto their devices, technologies that track digital traces left when people go online (e.g., URLs visited). Since metered data allow for the observation of online behaviours unobtrusively, it has been proposed as a useful tool to understand what people do online and what impacts this might have on online and offline phenomena. It is crucial, nevertheless, to understand its limitations. Although some research have explored the potential errors of metered data, a systematic categorisation and conceptualisation of these errors are missing. Inspired by the Total Survey Error, we present a Total Error framework for digital traces collected with Meters (TEM). The TEM framework (1) describes the data generation and the analysis process for metered data and (2) documents the sources of bias and variance that may arise in each step of this process. Using a case study we also show how the TEM can be applied in real life to identify, quantify and reduce metered data errors. Results suggest that metered data might indeed be affected by the error sources identified in our framework and, to some extent, biased. This framework can help improve the quality of both stand-alone metered data research projects, as well as foster the understanding of how and when survey and metered data can be combined.
    Keywords: digital trace data; error framework; metered data; passive data; total survey error; web-tracking; 849165; Wiley deal
    JEL: C1
    Date: 2022–11–06
  31. By: Langenbucher, Katja
    Abstract: Search costs for lenders when evaluating potential borrowers are driven by the quality of the underwriting model and by access to data. Both have undergone radical change over the last years, due to the advent of big data and machine learning. For some, this holds the promise of inclusion and better access to finance. Invisible prime applicants perform better under AI than under traditional metrics. Broader data and more refined models help to detect them without triggering prohibitive costs. However, not all applicants profit to the same extent. Historic training data shape algorithms, biases distort results, and data as well as model quality are not always assured. Against this background, an intense debate over algorithmic discrimination has developed. This paper takes a first step towards developing principles of fair lending in the age of AI. It submits that there are fundamental difficulties in fitting algorithmic discrimination into the traditional regime of anti-discrimination laws. Received doctrine with its focus on causation is in many cases ill-equipped to deal with algorithmic decision-making under both, disparate treatment, and disparate impact doctrine. The paper concludes with a suggestion to reorient the discussion and with the attempt to outline contours of fair lending law in the age of AI.
    Keywords: credit scoring methodology,AI enabled credit scoring,AI borrower classification,responsible lending,credit scoring regulation,financial privacy,statistical discrimination
    JEL: C18 C32 K12 K23 K33 K40 J14 O31 O33
    Date: 2022
  32. By: Matteo Sostero (European Commission – JRC); Songül Tolan (European Commission – JRC)
    Abstract: The digital transition of the economy is widely expected to change the nature of work. This may happen both through creating new digital job profiles, and by digitising existing jobs. We track the trends in demand for digital skills across occupations, using data from over 60 million online job advertisements in the United Kingdom over 2012-2020, the longest-running such data source in Europe. Although online job advertisements tend to understate the prevalence of basic digital competence (like computer literacy or office software) compared to representative surveys, they are particularly precise in tracking skills related to emerging digital technologies. We classify over 13,000 different skills required by employers in the data into clusters, through a community-detection algorithm based on the co-occurrence of skills in job advertisements. We identify several clusters that relate to advanced digital skills in emerging domains. We also find that digital skills are at the core of some “non-digital” domains, like the administrative and clerical cluster. Advanced digital skills also pay a notable wage premium: premium: skills in the AI & Big Data cluster are associated with about 10.8% higher offered wages, compared to similar advertisements. For skills in the Advanced ICT cluster, the wage premium is about 15.9% and for ICT Support the premium is about 6.3%. Overall, online job advertisements provide a unique view into the process of competence definition of emerging skill profiles.
    Keywords: Digital Transformation, Future of Work, Digital Skills, Artificial Intelligence
    Date: 2022–11
  33. By: C\'elestin Coquid\'e; Jos\'e Lages; Dima L. Shepelyansky
    Abstract: From the Bretton Woods agreement in 1944 till the present day, the US dollar has been the dominant currency in the world trade. However, the rise of the Chinese economy led recently to the emergence of trade transactions in Chinese yuan. Here, we analyze mathematically how the structure of the international trade flows would favor a country to trade whether in US dollar or in Chinese yuan. The computation of the trade currency preference is based on the world trade network built from the 2010-2020 UN Comtrade data. The preference of a country to trade in US dollar or Chinese yuan is determined by two multiplicative factors: the relative weight of trade volume exchanged by the country with its direct trade partners, and the relative weight of its trade partners in the global international trade. The performed analysis, based on Ising spin interactions on the world trade network, shows that, from 2010 to present, a transition took place, and the majority of the world countries would have now a preference to trade in Chinese yuan if one only consider the world trade network structure.
    Date: 2022–11
  34. By: Lin, Trisha T. C.
    Abstract: Taiwan has faced bot driven disinformation campaigns during elections and COVID 19 outbreaks. Although past studies suggest ill agenda socialbots accelerate and deteriorate disinformation influences, their relationship has not been examined quantitatively yet. To fill the research gap, this study aims to investigate the comp lex associations between socialbot attitude and disinformation interaction and related factors affecting disinformation threat. Disguised socialbots in this study refer to fake accounts to engage in malicious online activities via anthropomorphic social me dia interactions. A modified Theory of Planned Behavior (TPB) model is adapted to examine h ow socialbot attitudes and disinformation interaction are associated with perceived bot control and privacy concern, which influences disinformation threat. This web survey examines 750 Taiwanese socialbot users' perceptions and attitudes towards disguised socialbots in August 2021. Structural equation modeling (SEM) results show that socialbot attitude is positively associated with perceived bot control and disinform ation interaction, but is not related to privacy concern. Disinformation interaction is positively associated with perceived bot control and privacy concern. That is, negative attitudes towards malicious socialbots result in users' increasing perceived bot control and competence with disinformation interaction. Additionally, the more interaction with disinformation, the higher degree of perceived bot control and privacy concern about socialbots. Moreover, perceived bot control and privacy concern predicts disinformation threat. Implications are discussed.
    Keywords: Socialbot,disinformation,Theory of Planned Behavior,perceived bot control,privacy concern
    Date: 2022
  35. By: Fujisawa, Chieko; Kasuga, Norihiro
    Abstract: This study analyzes advertiser firms' product differentiation strategies and the relationship two media advertising effect, mass media and online media. We derive an inverse demand function from the utility function relating to the evaluation of the goods' additional information that consumers obtain from advertisements, and we analyze the advertising choices of firms using a two-stage decision-making model. The analysis results indicate that firms choose asymmetric advertising to take advantage of the interdependent effects of two advertising and differentiation and to increase profit through rivals' advertising effects. However, the profits of firms are the highest when both firms choose the discriminatory online media advertising. Social welfare is highest in symmetric choice of the discriminatory online advertising, but consumer surplus is highest in symmetric choice of the discriminatory mass media advertising.
    Keywords: Online media advertising,Mass media advertising,Targeting,Differentiation Strategy,Interaction
    Date: 2022
  36. By: Carattini, Stefano; Gillingham, Kenneth T.; Meng, Xiangyu; Yoeli, Erez
    Abstract: Observability and social rewards have been demonstrated to influence the adoption of pro-social behavior in a variety of contexts. This study implements a field experiment to examine the influence of observability and social rewards in the context of a novel pro-social behavior: peer-to-peer solar. Peer-to-peer solar offers an opportunity to households who cannot have solar on their homes to access solar energy from their neighbors. However, unlike solar installations, peer-to-peer solar is an invisible form of pro-environmental behavior. We implemented a set of randomized campaigns using Facebook ads in the Massachusetts cities of Cambridge and Somerville, in partnership with a peer-to-peer company, which agreed to offer to a subsample of customers the possibility to share “green reports” online, providing shareable information about their greenness. We find that interest in peer-to-peer solar increases by up to 30% when “green reports,” which would make otherwise invisible behavior visible, are mentioned in the ads
    Keywords: Peer to peer solar; pro-environmental behavior; social rewards; visibility; Facebook
    JEL: C93 D91 Q20
    Date: 2022–11–09
  37. By: Fourberg, Niklas; Tas, Serpil; Wiewiorra, Lukas
    Abstract: Ad-avoidance technologies such as ad-blocking devices in browsers have become mainstream tools in recent years and escaped their role as niche applications that are only for the technically savvy. While technical impacts of those tools are well researched, their effects on actual consumer behavior is not. In an experimental setting this study provides first evidence on the effect of ad-blocking on users' ability to acquire information in the form of an online reading task. We find that ad-blocking leads to more effort being exerted and increases social welfare by reducing inefficient searching. Additionally, ad-blocking induces users' visit duration on websites to be more elastic in the experienced intensity of advertisements, making the competitive environment among publishers more intense.
    Keywords: Ad-blocking,consumer behavior,lab experiment,online advertising,welfare,privacy
    JEL: L82 L86 M37 C91
    Date: 2022
  38. By: Jan Gromadzki; Przemysław Siemaszko
    Abstract: In recent decades, the number of people disclosing their LGBTQ identity has increased substantially. We investigate the role of peer effects in coming out decisions using a model of a game social learning via networks. We use newly collected data from two waves of a spontaneous Twitter coming out campaign to test the prediction that observing peers coming out increases the probability of an individual disclosing their LGBTQ identity. We combine data on users' pre-campaign networks with the information on the exact time of costly coming out actions to construct a time-varying measure of the exposure to peers coming out as LGBTQ. A one standard deviation increase in the exposure increases the probability of coming out by almost 20%. We also exploit the non-overlapping network structure of users' peers groups as an exogenous source of variation, and we confirm the baseline results. We argue that the estimated effects are due to changes in beliefs about the costs of disclosure.
    Keywords: LGBTQ; social networks; peer effects; social media; cultural change
    JEL: J15 D85 D74 P16 Z13
    Date: 2022–10
  39. By: Kim, Kijin (Asian Development Bank Institute); Ardaniel, Zemma (Asian Development Bank Institute); Kikkawa, Aiko (Asian Development Bank Institute); Endriga, Benjamin (Asian Development Bank Institute)
    Abstract: We examine the countercyclicality of remittance inflows to the countries in Asia and the Pacific. We also identify major determinants of remittances using gravity models of bilateral remittances. We find that bilateral remittance inflows are countercyclical against the business cycle of a remittance-receiving country relative to a sending country. The degree to which remittances are countercyclical is found to vary significantly by subregion: Central Asia and Southeast Asia, including many remittance-dependent countries, show stronger countercyclicality than other subregions. The estimated models suggest that migrant stock is a top determinant of remittances, and that an increase in bilateral remittances is explained by a higher occurrence of disasters caused by natural hazards in receiving countries, appreciation of a receiving country’s currency value against that of the sending country, lower interest rate differential (receiver–sender), greater capital account openness and higher political instability, and lower costs of remittances. This suggests that an altruistic motivation to remit prevails in the region. We also find that the countercyclicality of remittances rises when recipient countries experience more frequent disasters, a higher old-age dependence ratio, less stringent capital control, and stable political climate.
    Keywords: remittances; Asia and the Pacific; countercyclicality; business cycle; gravity model
    JEL: C23 F24 F44
    Date: 2022–05
  40. By: Maria Cesira Urzì Brancati (European Commission – JRC); Maurizio Curtarelli (EU-OSHA); Sara Riso (Eurofound); Sara Baiocco (European Commission - DG EMPL)
    Abstract: This study describes how the digitisation of the workplace may contribute to the emergence of data-driven management, and how this, in turn, may affect work organisation and aspects of job quality, such as occupational health and safety. It summarises and defines the technologies that enable data-driven management and provides a snapshot of their diffusion across Europe. The paper shows how some technologies are fairly widespread, while other are found only in a minority of establishments. The descriptive analysis presented in this research report shows that the use of technologies enabling data-driven management may have both positive and negative impacts on workers and working conditions. Better establishment performance, provision of training, greater job complexity and worker autonomy are among the positive impacts associated with the presence of some digital technologies for data-driven management. By contrast, lower workers’ well-being and a higher prevalence of reported psychosocial risks in the workplace are among the negative impacts at the establishment level. The paper suggests that workplaces can introduce a number of measures to mitigate the potentially negative impact of data-driven management on workers’ wellbeing.
    Keywords: data-driven management; algorithmic management; psychosocial risks; digitisation; work organisation; working conditions
    Date: 2022–11
  41. By: Ghaffari, Reza; Cheng, Kequn
    Abstract: Purpose - the main purpose of this study is to investigate the impact of Covid-19 pandemic on online shopping behavior in Iran. Design/methodology/approach - 484 customers of Digi Kala were selected by simple random sampling. The present study is applied objectively. The present study is a descriptive research in terms of how to collect data and it is a field research in terms of data collection. Structural equation modeling and SPSS 23 and SMARTPLS3 software were used to analyze the data. Findings - our results indicated that Covid-19 pandemic had a positive and significant effect on online shopping behavior in Iran. The level of health and economic fears during Covid-19 pandemic had a positive and significant effect on online shopping behavior in Iran. According to the moderating role of generational differences, Covid-19 pandemic and the level of health fears during the pandemic had a positive and significant effect on online shopping behavior in Iran. Nevertheless, the level of economic fears during Covid-19 pandemic had no significant effect on online shopping behavior in Iran according to the moderating role of generational differences. Originality/value - this work provides a guidance for the researchers and academicians in the field of marketing. Correspondingly, retailers and marketers should train themselves to survive during the global pandemics, and learn innovative approaches to supply the needs according to the changes in customers shopping behavior.
    Date: 2022–06–08

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.