nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒01‒02
thirty papers chosen by
Bernardo Bátiz-Lazo
Northumbria University

  1. The pandemic, cash and retail payment behaviour: insights from the future of payments database By Raphael Auer; Giulio Cornelli; Jon Frost
  2. Blockchains with Chinese Characteristics By Kshetri, Nir
  3. How Can We Learn from Borrowers’ Online Behaviors? The Signal Effect of Borrowers’ Platform Involvement on Their Credit Risk By Tang, Xinyin; Feng, Chong; Zhu, Jianping; He, Minna
  4. Mieux comprendre le niveau dâadoption des cryptoactifs au Québec By Thierry Warin; Nathalie de Marcellis-Warin; Robert Normand
  5. Understanding Cryptocoins Trends Correlations By Pasquale De Rosa; Valerio Schiavoni
  7. Using crypto assets pricing methods to build technical oscillators for short-term bitcoin trading By Yang, Zixiu; Fantazzini, Dean
  8. 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
  9. The Brazilian digital platform economy: a first approach By Silva, Victo J.; Chiarini, Tulio; Ribeiro, Leonardo Costa
  10. Solid: Enabler of decentralized, digital platforms ecosystems By Verstraete, Melanie; Verbrugge, Sofie; Colle, Didier
  11. On the competition between Video OTTs Platforms vs Traditional TV: A Niche Case Study in Greece By Papathanasopoulos, Athanasios; Varoutas, Dimitris
  12. Investor base and idiosyncratic volatility of cryptocurrencies By Amin Izadyar; Shiva Zamani
  13. Privacy trade-offs in the ride-hailing services By Michał Paliński
  14. Self-preferencing and foreclosure in digital markets: Theories of harm for abuse cases By Massimo Motta
  15. A Configurational Approach to Understanding the Drivers of Mobile Phone Usage in Developing Countries By Evelyn Odonkor; Jessie Pallud
  16. AVALIAÇÃO ECONÔMICO-FINANCEIRA DE FINTECHS NO MERCADO: BRASILEIRO: O CASO INTER By Borges da Silva, Eduardo; Moreno Cordeiro de Sousa, Alexandre
  17. Money, E-money, and Consumer Welfare By Carli, Francesco; Uras, Burak
  18. "Big Data Applications with Theoretical Models and Social Media in Financial Management" By Taiga Saito; Shivam Gupta
  19. Platforms, organizations and injunctions to work By Yanita Andonova; Salma El Bourkadi; Nicolas Peirot
  20. What Should Economists Know About the Cloud? A Literature Review on Digital Economics By Leka, Enxhi
  21. Rights in the digital age: Challenges and ways forward By OECD
  22. Financial Impact of Trust and Institutional Quality around the World By Svatopluk Kapounek; Evzen Kocenda; Ludek Kouba
  23. The determinants of domestic saving in Kenya By Rodgers Musamali; Cecilia Mutia; Rose W. Ngugi
  24. The Economics of Recommender Systems: Evidence from a Field Experiment on MovieLens By Guy Aridor; Duarte Goncalves; Daniel Kluver; Ruoyan Kong; Joseph Konstan
  25. Indicador Bernardos: un nuevo indicador clave en el análisis del mercado de las criptomonedas y de la conducta humana ante lo desconocido By Fourier, Jean-Baptiste Joseph
  26. Identifying and characterising AI adopters: A novel approach based on big data By Flavio Calvino; Lea Samek; Mariagrazia Squicciarini; Cody Morris
  27. National Culture and the Demand for Physical Money During the First Year of the COVID-19 Pandemic By Radoslaw Kotkowski
  28. Online Reviews and Hospital Choices By Ian McCarthy; Kaylyn Sanbower; Leonardo Sánchez Aragón
  29. Gold and Silver as Safe Havens: A Fractional Integration and Cointegration Analysis By Guglielmo Maria Caporale; Luis A. Gil-Alana
  30. Investor monitoring, money-likeness and stability of money market funds By Järvenpää, Maija; Paavola, Aleksi

  1. By: Raphael Auer; Giulio Cornelli; Jon Frost
    Abstract: The Covid-19 pandemic has been a shock to retail payment behaviour. How have the changes differed across countries? What do they imply for the future of cash and digital payments? We assemble a new "Future of Payments" database on retail payment behaviour for up to 95 countries over September 2019 to June 2022. We compare this with measures of the severity of the Covid-19 pandemic, using variation in the timing of waves of cases, changes in mobility and lockdown measures across countries. We find that card-not-present payments, payment app downloads and the volume of cash in circulation all rose in weeks of more stringent lockdowns. Changes were less pronounced in countries with higher mobile penetration. However, recent data suggest that some effects reversed once lockdowns were eased, and mobility rebounded.
    Keywords: retail payments, cash, Covid-19 pandemic, digital innovation.
    JEL: E42 I18 O32 O33
    Date: 2022–12
  2. By: Kshetri, Nir
    Abstract: The Chinese blockchain industry and market have unique, unusual and idiosyncratic characteristics. Several established companies as well as startups in China have developed and deployed innovative solutions involving blockchain. On the other hand, some uses of blockchain such as initial coin offering for capital-raising have been banned. While blockchain is a disruptive technology with a potential to transform the economy and society, it promotes decentralized governance and thus can turn centralized political structures such as those of China upside down. This paper offers an analysis of seemingly conflicting actions of the Chinese government on the blockchain front. It analyzes how China is creating a delicate balance between encouraging the use of blockchain for the growth and modernization of the economy and making sure that the technology is not used to threaten the legitimacy of the Chinese Communist Party.
    Keywords: blockchain,China,cryptocurrency,initial coin offering,product traceability,trade finance
    Date: 2022
  3. By: Tang, Xinyin; Feng, Chong; Zhu, Jianping; He, Minna
    Abstract: A growing number of borrowers are applying for digital credit through Internet platforms due to the integration of digital credit services the Internet. However, further empirical evidence is needed to explore how a borrower’s platform behaviors affect its credit risk. As such, our study uses signaling theory as the theoretical foundation to explore the overall effects of a borrower's platform involvement intensity on its credit risk based on a large consumer credit application dataset. The main finding shows the increase in a borrower’s involvement intensity reduces its likelihood of defaulting. We attribute it to the platform's belief that borrowers with high involvement intensity have the higher value to the platform. In addition, we examine how a borrower's involvement intensity is moderated by several factors, such as the stability of its platform involvement intensity and its credit history. Due to the importance of digital credit services in microfinance, we have provided useful implications for achieving win-win outcomes in the credit market for the stakeholders.
    Date: 2022–12–01
  4. By: Thierry Warin; Nathalie de Marcellis-Warin; Robert Normand
    Abstract: → Summary of results Cryptoassets are growing exponentially within the global economy. Crypto-currencies represent the main component of cryptoassets, the best known of which is Bitcoin. Cryptoactives share many of the features of cryptocurrencies but there is usually a second layer of functionality such as smart contracts. Crypto asset technology certainly presents new opportunities but also risks. In this context, it is important for a regulator to better understand the level of adoption of cryptocurrencies by the population in order to guide information campaigns and warning messages. In this exploratory research project several data acquisition methods were used. A review of surveys from different organizations on the level of knowledge and profile of cryptoasset users in several countries was conducted. For Quebec, specific questions on cryptocurrency knowledge and adoption were added to the 2021 and 2022 CIRANO Barometer surveys that poll the Quebec population on societal issues. To refine the analysis, a sample of investors who own or have owned crypto-currencies, who are members of crypto-currency discussion groups were surveyed. Finally, an algorithmic review showed very clearly an increase in the number of academic publications on the subject, especially associated with the technology. In addition, the topic of cryptocurrencies has been increasingly covered by the mainstream media, which has generated attention and awareness among the population and especially on social networks. Analysis of Twitter conversations showed that the number of tweets, which was stable until December 2020, increased significantly and focused on the change in the price of cryptocurrencies and often with recommendations to buy and sell. → Synthèse des résultats Les cryptoactifs se développent de façon exponentielle au sein de l’économie mondiale. Les cryptomonnaies représentent la principale composante des cryptoactifs dont la plus connue est le Bitcoin. Les cryptoactifs partagent bon nombre des caractéristiques des cryptomonnaies mais il y a généralement une deuxième couche de fonctionnalités comme les contrats intelligents. La technologie liée aux cryptoactifs présente certes de nouvelles opportunités mais également des risques. Dans ce contexte, il est important, pour un régulateur de mieux comprendre le niveau d’adoption des cryptomonnaies de la population afin d’orienter les campagnes d’information et les messages de mise en garde. Dans ce projet de recherche exploratoire plusieurs méthodes d’acquisition de données ont été utilisées. Une revue des enquêtes de différentes organisations sur le niveau de connaissance et le profil des utilisateurs de cryptoactifs dans plusieurs pays a été mené. Pour le Québec, des questions spécifiques sur la connaissance et l’adoption des cryptomonnaies ont été ajoutées aux enquêtes 2021 et 2022 du Baromètre CIRANO qui sonde la population du Québec sur des enjeux de société. Afin d’affiner l’analyse, un échantillon d’investisseurs possédant ou ayant possédé des cryptomonnaies, membres de groupes de discussion sur les cryptomonnaies a été sondé. Enfin, une revue algorithmique a montré très nettement une augmentation du nombre de publications académiques sur le sujet, notamment associées à la technologie. De plus, le sujet des cryptomonnaies a été de plus en plus couvert par les médias grand public, ce qui a suscité l'attention et la sensibilisation de la population et notamment sur les réseaux sociaux. L’analyse des conversations sur Twitter a montré que le nombre de gazouillis, qui était stable jusqu’en décembre 2020, a augmenté de façon importante et a porté sur la variation du prix des cryptomonnaies et souvent avec des recommandations d’achat et de vente.
    Keywords: Cryptoassets; cryptocurrencies,Bitcoin,Ethereum,financial literacy,blockchain,questionnaire survey,algorithmic review,social networks, Cryptoactifs,cryptomonnaies,Bitcoin,Ethereum,littératie financière,chaîne de blocs,enquête par questionnaire,revue algorithmique,réseaux sociaux
    Date: 2022–12–02
  5. By: Pasquale De Rosa; Valerio Schiavoni
    Abstract: Crypto-coins (also known as cryptocurrencies) are tradable digital assets. Notable examples include Bitcoin, Ether and Litecoin. Ownerships of cryptocoins are registered on distributed ledgers (i.e., blockchains). Secure encryption techniques guarantee the security of the transactions (transfers of coins across owners), registered into the ledger. Cryptocoins are exchanged for specific trading prices. While history has shown the extreme volatility of such trading prices across all different sets of crypto-assets, it remains unclear what and if there are tight relations between the trading prices of different cryptocoins. Major coin exchanges (i.e., Coinbase) provide trend correlation indicators to coin owners, suggesting possible acquisitions or sells. However, these correlations remain largely unvalidated. In this paper, we shed lights on the trend correlations across a large variety of cryptocoins, by investigating their coin-price correlation trends over a period of two years. Our experimental results suggest strong correlation patterns between main coins (Ethereum, Bitcoin) and alt-coins. We believe our study can support forecasting techniques for time-series modeling in the context of crypto-coins. We release our dataset and code to reproduce our analysis to the research community.
    Date: 2022–11
  6. By: Levashenko Antonina (Russian Presidential Academy of National Economy and Public Administration); Girich Maria (Russian Presidential Academy of National Economy and Public Administration)
    Abstract: As part of this work, aspects of legal regulation of the listed types of online platforms were analyzed, in particular, regulatory standards within international organizations, including OECD, WTO, UNCITRAL, ILO, as well as practices of countries, including the USA, EU countries (France, Netherlands), Australia, Canada.
    Keywords: online platforms that create infrastructure for equal participants in the digital economy, p2p platforms, OECD, competition, labor legislation, investment platforms, provision of taxi services through online platforms.
    Date: 2021–01
  7. By: Yang, Zixiu; Fantazzini, Dean
    Abstract: This paper examines the trading performances of several technical oscillators created using crypto assets pricing methods for short-term bitcoin trading. Seven pricing models proposed in the professional and academic literature were transformed into oscillators, and two thresholds were introduced to create buy and sell signals. The empirical back testing analysis showed that some of these methods proved to be profitable with good Sharpe ratios and limited max drawdowns. However, the trading performances of almost all methods significantly worsened after 2017, thus indirectly confirming an increasing financial literature that showed that the introduction of bitcoin futures in 2017 improved the efficiency of bitcoin markets.
    Keywords: C32, C51; C53; C58; G11; G12; G17;
    JEL: C32 C51 C53 C58 G11 G12 G17
    Date: 2022
  8. By: Dalton, Patricio (Tilburg University, School of Economics and Management); Pamuk, H. (Tilburg University, School of Economics and Management); Ramrattan, R.; van Soest, Daan (Tilburg University, School of Economics and Management); Uras, Burak (Tilburg University, School of Economics and Management)
    Date: 2022
  9. By: Silva, Victo J. (Radboud University); Chiarini, Tulio; Ribeiro, Leonardo Costa
    Abstract: The digital platform economy has grown in the past decade and has caught the attention of policy-makers and scholars. There is evidence in the literature that this new configuration of economic activities has implications for the sovereignty of data produced within a national frontier, market concentration, competition patterns, and data privacy. Despite this relevance, empirical knowledge about the landscape of digital platforms and their main features is still scant. In general, a few cases of digital platforms draw public and scholarly attention. The lack of empirical knowledge about what constitutes, in fact, the platform economy is worrying, mainly due to the regulatory advances that have been proposed in the world and followed by Brazil. In this study, our goal is to provide a descriptive overview of the digital platform economy in Brazil by assessing aggregate characteristics of digital platform companies founded in the country, such as geographic distribution, sector and source of financing. Using Crunchbase data, we found 556 digital platform firms, demonstrating that the Brazilian national private sector followed the global trend of developing digital platforms. The gross majority of them are small companies concentrated in the “commerce and shopping” sector and centralized in the South and Southeast regions, whose epicentre is São Paulo metropolitan area.
    Date: 2022–11–30
  10. By: Verstraete, Melanie; Verbrugge, Sofie; Colle, Didier
    Abstract: This paper studies the decentralized, digital ecosystem that is enabled by the Solid specification. Solid provides the possibility to break through data silos and simultaneously allows the end-user to regain control. However, research regarding business modelling and economic viability of such ecosystems is still lacking. Therefore, the goal of this paper is to provide first insights for this research area by proposing a value network model for such ecosystems. Though evaluation of existing frameworks and roles proposed by big initiatives like International Data Spaces, a first set of business roles is described. In a second step, these are evaluated with an actual validated use case where Solid is implemented within the HR domain.
    Date: 2022
  11. By: Papathanasopoulos, Athanasios; Varoutas, Dimitris
    Abstract: The paper examines the competition between traditional TV and Video OTT platforms in Greece. The niche theory has been adopted in order to measure users' gratification fulfilled by TV and OTTs, the competition superiority of each media and the similarity of those two media across seven aspects of gratification. An online survey conducted during first months of 2022 and 355 total feedbacks has been collected. Video OTTs score higher in six dimensions of gratification than TV, except financial benefit. Regarding niche overlap, results show that those media share close levels of similarity in information, ease of use and convenience. OTT's exceed TV in five dimensions of gratification. The highest score on the overall findings of competition superiority is in relaxation, while TV exceeds in financial benefit and information.
    Keywords: media platform,media competition,niche analysis,OTT
    Date: 2022
  12. By: Amin Izadyar; Shiva Zamani
    Abstract: This paper investigates how changes in investor base is related to idiosyncratic volatility in cryptocurrency markets. For each cryptocurrency, we set change in its subreddit followers as a proxy for the change in its investor base, and find out that the latter can significantly increase cryptocurrencies idiosyncratic volatility. This finding is not subsumed by effects of size, momentum, liquidity and volume and is robust to various measures of idiosyncratic volatility.
    Date: 2022–11
  13. By: Michał Paliński (Faculty of Economic Sciences, University of Warsaw; Digital Economy Lab (DELab UW)
    Abstract: We test for users readiness for co-financing ride-hailing service with their personal data applying a Discrete Choice Experiment. We design an experiment in which respondents are asked to choose between hypothetical app-based taxi rides which offered discounts as a compensation for intruding their privacy and a regular service. Our analysis compare how awareness of rights stemming from GDPR affects respondent’s privacy preferences. Cross-group analysis indicate that reminding users about their rights stemming from the GDPR significantly increases their valuation of personal data. The results of WTA analysis suggest that there is a market for "pay with your data" business models.
    Keywords: economics of privacy, mobile apps, DCE, mixed logit, WTA
    JEL: C25 D12 L51
    Date: 2021
  14. By: Massimo Motta
    Abstract: Antitrust agencies all over the world have been investigating large digital platforms for practices which may constitute an abuse of dominance. Here I discuss practices (including "selfpreferencing" and denial or degradation of interoperability) which can be interpreted as foreclosure in vertically-related or complementary markets. I discuss in particular a few high-profile cases involving Amazon, Apple, Facebook and Google. I focus on possible theories of harm for such cases and show that both original simple models and well-established economic theories (adapted or interpreted) provide a rationale for anti-competitive foreclosure.
    Keywords: self-preferencing, abuse of dominance, monopolization, exclusionary practices, digital platforms, two-sided markets, vertical foreclosure
    JEL: D40 K21 L10 L40
    Date: 2022–12
  15. By: Evelyn Odonkor (The American University of Paris); Jessie Pallud (Humanis - Hommes et management en société / Humans and management in society - UNISTRA - Université de Strasbourg)
    Abstract: While mobile technology adoption has been largely examined by IS research, the symbolic meanings related to these technologies and the role they play in the adoption of mobile technologies in developing countries has been neglected. Thus, this study examines the effects of symbolic drivers (extended self, uniqueness, and status gain), experiential (flow), and functional drivers (ease of use, usefulness) on mobile technology usage by applying the fuzzy-set configurational approach (fsQCA). Survey responses were collected from 430 inhabitants from Ghana. The results show six configurations in which different combinations of symbolic meanings with traditional adoption factors lead to mobile phone usage. These multiple configurations reveal that there is not a single optimal feature that leads to mobile phone adoption in developing countries but rather a blend of features, depending on different combinations of symbolic, experiential, and functional variables.
    Keywords: Developing Countries,Extended Self,Fuzzy-Set Qualitative Comparative Analysis (fsQCA),Ghana,Mobile Phone Adoption,Symbolic Drivers
    Date: 2022
  16. By: Borges da Silva, Eduardo; Moreno Cordeiro de Sousa, Alexandre
    Abstract: In recent years, it was possible to observe a growing wave of public startup offerings, among them, those that focus on innovations related to the financial market. The Financial Technology industry (fintech) can be classified as a hybrid one, transiting between traditional banking operations and the technology-centered market. In this sense, this work identifies that the best way of modeling fintech’s valuation is not related to conventional valuation methodologies Starting from a relative market analysis of this company’s performance, the conclusion is that adequations on the business perspectives of Banco Inter may prompt distinct value understanding, the fact that suggests the need of incorporation uncertainty and behavioral aspects to analysis.
    Keywords: Fintech; Valuation; Banco Inter
    JEL: G18 G21 G23 G28
    Date: 2022–10–15
  17. By: Carli, Francesco; Uras, Burak (Tilburg University, School of Economics and Management)
    Date: 2022
  18. By: Taiga Saito (Faculty of Economics, The University of Tokyoy); Shivam Gupta (Faculty of Economics, The University of Tokyo)
    Abstract: This study presents big data applications with quantitative theoretical models in financial management and investigates possible incorpora- tion of social media factors into the models. Specifically, we examine three models, a revenue management model, an interest rate model with market sentiments, and a high-frequency trading equity market model, and consider possible extensions of those models to include social media. Since social media plays a substantial role in promoting prod- ucts and services, engaging with customers, and sharing sentiments among market participants, it is important to include social media fac- tors in the stochastic optimization models for financial management. Moreover, we compare the three models from a qualitative and quan- titative point of view and provide managerial implications on how these models are synthetically used along with social media in financial management with a concrete case of a hotel REIT. The contribution of this research is that we investigate the possible incorporation of social media factors into the three models whose objectives are revenue management and debt and equity financing, essential areas in finan- cial management, which helps to estimate the effect and the impact of social media quantitatively if internal data necessary for parameter estimation are available, and provide managerial implications for the synthetic use of the three models from a higher viewpoint. The numer- ical experiment along with the proposition indicates that the model can be used in the revenue management of hotels, and by improving the social media factor, the hotel can work on maximizing its sales.
    Date: 2022–12
  19. By: Yanita Andonova (Université Sorbonne Paris Nord); Salma El Bourkadi (Université Sorbonne Paris Nord); Nicolas Peirot (Université Sorbonne Paris Nord)
    Abstract: The purpose of this thematic issue is to study the info-communicational processes in the context of organizations where digital platforms occupy an increasingly prominent place. We define these platforms as transformative organizational forms of work, socio-technical devices marked by discourses, representations and imaginations that are embodied in concrete professional practices and specific intermediations. By their capacity to accelerate exchanges, to shake up professional dynamics and to escape regulations under cover of an ideology of disintermediation, these devices seem to carry major reconfigurations from the point of view of organizational communication.
    Abstract: L'objet de dossier est d'étudier les processus info-communicationnels dans le cadre des organisations où les plateformes numériques occupent une place de plus en plus prégnante. Nous définissons celles-ci comme des formes organisationnelles transformatrices du travail, des dispositifs socio-techniques marqués par des discours, des représentations et des imaginaires qui s'incarnent dans des pratiques professionnelles concrètes et des intermédiations spécifiques. Par leur capacité à accélérer les échanges, à bousculer les dynamiques professionnelles et à échapper aux réglementations sous couvert d'une idéologie de la désintermédiation, ces dispositifs semblent porteurs de reconfigurations majeures du point de vue de la communication des organisations.
    Date: 2022
  20. By: Leka, Enxhi
    Abstract: The climate of technological innovation has presented the world with many solutions, but at the same time, many issues follow. This paper discusses several elements of the backbone network and data centers to encourage researchers to work on this subject and dig deeper into the economic impact, regulation, competition, etc. This paper should be read as a simple guide to this complex industry.
    Keywords: Cloud Technologies,Data Center Localization,Data Storage and Computing,Personal Data
    Date: 2022
  21. By: OECD
    Abstract: As our online and offline lives become increasingly interwoven, policy makers have to consider how to protect individual interests and rights. This paper considers the impact of digital transformation on internationally recognised human rights, legal and constitutional rights, and domestically protected interests. It sets out three case studies, freedom of expression, privacy and Internet access, and provides a brief overview of current international and domestic initiatives to protect "rights in the digital age". The paper sets the scene for further discussion on the issue and supports policy makers in designing and achieving a rights-oriented and human-centric digital transformation.
    Date: 2022–12–14
  22. By: Svatopluk Kapounek (Mendel University in Brno, Faculty of Business and Economics, Czech Republic); Evzen Kocenda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Ludek Kouba (Mendel University in Brno, Faculty of Business and Economics, Czech Republic)
    Abstract: We investigate the financial impact of social trust, institutional quality, and regulations. As a testing ground we employ a unique, large, and hand-crafted dataset of more than 850 000 lending-based crowdfunding projects from 155 platforms across 55 countries during 2005-2018. We show that the impact of social trust is positive but economically less pronounced than that of institutional trust proxied by legal and property rights protection and regulation. Moreover, the financial impact of social trust is greater at the national level, while impact of institutional quality dominates at the international level. Nevertheless, the financial impact of trust and institutional quality around the world is positive, which is an encouraging implication under increasing anonymity and internationalization of financial environment.
    Keywords: social capital, social trust, institutional trust, uncertainty, crowdfunding, financial markets
    JEL: A13 D23 G41 K11
    Date: 2022–12
  23. By: Rodgers Musamali; Cecilia Mutia; Rose W. Ngugi
    Abstract: The savings-growth nexus is widely acknowledged, both in policy and in the literature. But Kenya's numerous policy initiatives to encourage savings mobilization are yet to yield the expected outcomes. This paper identifies the key drivers of domestic saving in Kenya, exploiting fintech as an alternative channel for savings mobilization, and drawing lessons from the Kenyan experience so far.
    Keywords: Domestic savings, Growth, Policy, Fintech, Kenya
    Date: 2022
  24. By: Guy Aridor; Duarte Goncalves; Daniel Kluver; Ruoyan Kong; Joseph Konstan
    Abstract: We conduct a field experiment on a movie-recommendation platform to identify if and how recommendations affect consumption. We use within-consumer randomization at the good level and elicit beliefs about unconsumed goods to disentangle exposure from informational effects. We find recommendations increase consumption beyond its role in exposing goods to consumers. We provide support for an informational mechanism: recommendations affect consumers' beliefs, which in turn explain consumption. Recommendations reduce uncertainty about goods consumers are most uncertain about and induce information acquisition. Our results highlight the importance of recommender systems' informational role when considering policies targeting these systems in online marketplaces.
    Date: 2022–11
  25. By: Fourier, Jean-Baptiste Joseph
    Abstract: En este estudio se propone un nuevo indicador técnico para el mercado de las criptomonedas: el indicador Bernardos. El cálculo de este índice está basado en la aplicación del método kernel density estimation sobre la actividad, medida en número de tweets, del profesor y economista Gonzalo Bernardos en su cuenta de la red social Twitter. Los resultados del análisis del precio de Bitcoin mediante el indicador Bernardos sugieren que se trata de un buen detector de miedo en el mercado, de la capitulación de movimientos bajistas y del inicio de recuperaciones al alza del precio. Finalmente, se analiza una posible explicación psicológica detrás del comportamiento del indicador, relacionada con el sesgo cognitivo Dunning-Kruger unido a la necesidad humana de reafirmación de las ideas propias frente a las contrarias.
    Date: 2022–06–02
  26. By: Flavio Calvino; Lea Samek; Mariagrazia Squicciarini; Cody Morris
    Abstract: This work employs a novel approach to identify and characterise firms adopting Artificial Intelligence (AI), using different sources of large microdata. Focusing on the United Kingdom, the analysis combines data on Intellectual Property Rights, website information, online job postings, and firm-level financials for the first time. It shows that a significant share of AI adopters is active in Information and Communication Technologies and professional services, and is located in the South of the United Kingdom, particularly around London. Adopters tend to be highly productive and larger than other firms, while young adopters tend to hire AI workers more intensively. Human capital appears to play an important role, not only for AI adoption but also for firms’ productivity returns. Significant differences in the characteristics of AI adopters emerge when distinguishing between firms carrying out AI innovation, those with an AI core business, and those searching for AI talent.
    Keywords: artificial intelligence, productivity, technology adoption
    Date: 2022–12–19
  27. By: Radoslaw Kotkowski (Nicolaus Copernicus University in Toruń)
    Abstract: There was a significant increase in the demand for physical money during the COVID-19 pandemic. This stood in stark contrast to the decline in demand witnessed during previous pandemics. However, the change was not uniform and varied significantly between countries. By employing the “national culture” framework to identify the drivers of this variation, this study found that uncertainty avoidance, as well as social norms regarding gratification, played a major role. This suggests that some central banks should hold larger cash reserves to mitigate the risk of uncertainty and that the national culture framework may prove useful in researching the international differences in past, present, and future money demand.
    Keywords: COVID-19 pandemic; money demand; currency in circulation; national culture; uncertainty avoidance
    JEL: E41 E51 I12
    Date: 2022
  28. By: Ian McCarthy (U.S. Department of Justice); Kaylyn Sanbower (U.S. Department of Justice); Leonardo Sánchez Aragón (U.S. Department of Justice)
    Abstract: Information problems in health care and the multifaceted nature of hospital quality complicate hospital choice. Online reviews provide an accessible, salient means through which researchers and health care decision-makers can gather information about a hospital’s quality of care, and given their increasing popularity, these measures may affect hospital choice and may have implications for hospital prices. Using the universe of hospital Yelp reviews and inpatient claims data for elective procedures in Florida from 2012 through 2017, we exploit exogenous variation in online hospital ratings over time to identify the effect of online reviews on hospital choice. We find that among admissions for elective, inpatient procedures, patients are willing to travel between 5 and 30 percent further to receive care from a hospital with a higher Yelp rating, relative to other hospitals in the market. We also find evidence that higher ratings translate into higher commercial payments from insurers, albeit with relatively modest magnitudes. Our results indicate that novel, accessible sources of quality information have the potential to affect health care decisions, with potential downstream effects on health care prices.
    Date: 2022–12
  29. By: Guglielmo Maria Caporale; Luis A. Gil-Alana
    Abstract: This paper investigates whether gold and silver can be considered safe havens by examining their long-run linkages with 22 stock price indices. More specifically, the stochastic properties of the differential between gold/silver prices and 22 stock indices are analysed applying fractional integration/cointegration methods to daily data, first for a sample from January 2010 until December 2019, then for one from January 2020 until July 2022 which includes the Covid-19 pandemic. The results can be summarised as follows. In the case of the pre-Covid-19 sample ending in December 2019, mean reversion is found for the gold price differential vis-à-vis BEF, BSE, CAC, DOW, KLS, KS1, MXX, N100, NAS, NYA and SP5 and for both differentials vis-à-vis CAC, KLS and N100, i.e. the evidence is mixed on whether these precious metals can be seen as safe havens, though it appears that this property characterises gold in a slightly higher number of cases. By contrast, when using the sample starting in January 2020, the evidence in favour of gold and silver as possible safe havens is pretty conclusive since mean reversion is only found in a single case, namely that of the gold differential vis-à-vis NZX.
    Keywords: gold and silver, hedge, safe heaven, fractional integration and cointegration
    JEL: C22 C32 F30 F36 G01 G15
    Date: 2022
  30. By: Järvenpää, Maija; Paavola, Aleksi
    Abstract: An asset is money-like if investors have no incentives to acquire costly private information on the underlying collateral. However, privately provided money-like assets-like prime money market fund (MMF) shares-are prone to runs if investors suddenly start to question the value of the collateral. Therefore, for risky assets, lack of money-likeness is a necessary condition for lack of run incentives. But is it a sufficient one? This paper studies the effect of the U.S. money market fund reform of 2014-2016 on investor monitoring, money-likeness and stability of institutional prime MMFs. Using the number of distinct IP addresses accessing MMFs' regulatory reports as a proxy for investor monitoring, we find that the reform increased monitoring and thus decreased money-likeness of institutional prime funds. However, we also show that after the reform, institutional prime funds that are more likely to impose the newly introduced redemption restrictions are more monitored, suggesting that investors may monitor in order to avoid being hit by the restrictions. Overall, our results indicate that increased monitoring, or decreased money-likeness, has not made institutional prime MMFs run-free, and it may have actually created a new source of fragility for MMFs.
    Keywords: Money market funds,money markets,money market fund reform,money-likeness,information sensitivity,monitoring
    JEL: G01 G23 G28
    Date: 2021

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