nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒01‒23
35 papers chosen by

  1. CBDC, Fintech and cryptocurrency for financial Inclusion and financial stability By Ozili, Peterson K
  2. eNaira central bank digital currency (CBDC) for financial inclusion in Nigeria By Ozili, Peterson K
  3. The Global Pandemic, Laboratory of the Cashless Economy? By Jeremy Srouji; Dominique Torre
  4. Open banking in Europe: The impact of the Revised Payments Services Directive on Solarisbank and Insha By Nanaeva, Zhamal; Aysan, Ahmet Faruk; Shirazi, Nasim Shah
  5. Social Media and Newsroom Production Decisions By Julia Cagé; Nicolas Hervé; Béatrice Mazoyer
  6. Fintech As a Financial Disruptor: The Bibliometric Analysis By Nanaeva, Zhamal; Aysan, Ahmet Faruk
  7. Who Is Paying All These Fees? An Empirical Analysis of Bank Account and Credit Card Fees By Oz Shy; Joanna Stavins
  8. Gains from Product Variety: Evidence from a Large Digital Platform By Erik Brynjolfsson; Long Chen; Xijie Gao
  9. Money, e-money and consumer welfare By Carli, Francesco; Uras, Burak
  10. Crypto Wash Trading By Lin William Cong; Xi Li; Ke Tang; Yang Yang
  11. European Landscape on the Use of Blockchain Technology by the Public Sector By BOSCH Jaume Martin; TANGI Luca; BURIAN Peter
  12. Towards a participatory digital ethnography of blockchain governance By Ellie Rennie; Michael Zargham; Joshua Tan; Luke Miller; Jonathan Abbott; Kelsie Nabben; Primavera de Filippi
  13. The role of governance in the effect of the internet on financial inclusion in sub-Saharan Africa By Armand F. Akpa; Simplice A. Asongu
  14. Social media, the internet and the crisis of unionism By Nienhüser, Werner; Peetz, David; Murray, Georgina; Troup, Carolyn
  15. Assessing global interest in decentralized finance, embedded finance, open finance, ocean finance and sustainable finance By Ozili, Peterson K
  17. Multi-Agent Dynamic Pricing in a Blockchain Protocol Using Gaussian Bandits By Alexis Asseman; Tomasz Kornuta; Aniruth Patel; Matt Deible; Sam Green
  18. The Role of Location in the Emergence of Crowdfunding By Miglo, Anton
  19. The Effect of Using Shopee Pay later on Student Consumptive Behavior By Arba'atun, khoerun Nissa
  20. The Economics of Recommender Systems: Evidence from a Field Experiment on MovieLens By Guy Aridor; Duarte Gonçalves; Daniel Kluver; Ruoyan Kong; Joseph Konstan
  21. Fault Lines in Financial Inclusion By Ozili, Peterson K
  22. Media Competition and News Diets By Charles Angelucci; Julia Cagé; Michael Sinkinson
  23. Institutional theory of financial inclusion By Ozili, Peterson K
  24. Machine learning methods in finance: Recent applications and prospects By Hoang, Daniel; Wiegratz, Kevin
  25. Optimizing payment schemes in a decentralized supply chain: A Stackelberg game with quality investment and bank credit By Cao, Bing-Bing; You, Tian-Hui; Ou, Carol; Zhu, Hui; Liu, Chun-Yi
  27. Asia's push for monetary alternatives By Noland, Marcus
  28. DeFi Risk Transfer: Towards A Fully Decentralized Insurance Protocol By Matthias Nadler; Felix Bekemeier; Fabian Sch\"ar
  29. Digital Gold? Pricing, Inequality and Participation in Data Markets By Charlson, G.
  30. Online Appendix to The Demand for Money at the Zero Interest Rate Bound By Tsutomu Watanabe; Tomoyoshi Yabu
  31. A Tale of Two Global Monetary Policies By Silvia Miranda-Agrippino; Tsvetelina Nenova
  32. Leverage and Stablecoin Pegs By Gary B. Gorton; Elizabeth C. Klee; Chase P. Ross; Sharon Y. Ross; Alexandros P. Vardoulakis
  33. Achieving financial inclusion: whatever it takes By Ozili, Peterson K
  34. La brecha de género en el emprendimiento y la cultura emprendedora: Evidencia con Google Trends By Gutiérrez, Antonio
  35. Tratamiento de los criptoactivos en el sistema tributario argentino. Impuestos al patrimonio y las rentas By Labrador, Lucas Rodolfo

  1. By: Ozili, Peterson K
    Abstract: This article presents a discussion of the role of central bank digital currency (CBDC), Fintech and cryptocurrency for financial inclusion and financial stability. We show that Fintech, CBDC and cryptocurrency can increase financial inclusion by providing an alternative channel through which unbanked adults can access formal financial services. CBDC and Fintech services have the potential to preserve financial stability while cryptocurrency presents financial stability risks that can be mitigated through effective regulation. The paper also identified some problems of CBDC, Fintech and cryptocurrency for financial inclusion and financial stability. The paper offered some insight about the future of financial inclusion and the future of financial stability. Although CBDC, Fintech or cryptocurrency can extend financial services to unbanked adults and offer cost-efficient advantages, there are risk considerations that need to be taken into account when using CBDC, Fintech and cryptocurrency to increase financial inclusion and to preserve financial stability.
    Keywords: CBDC, Fintech, cryptocurrency, financial inclusion, financial stability, blockchain, central bank digital currency.
    JEL: E40 E51 E58 E59 G21 O31
    Date: 2023
  2. By: Ozili, Peterson K
    Abstract: There is much interest in central bank digital currency (CBDC) among central banks around the world. African countries have also joined the league of nations that are conducting research into CBDC. The launch of the eNaira CBDC in Nigeria has drawn substantial interest from observers around the world including central banks. The eNaira CBDC is envisaged to bring many benefits, and financial inclusion is considered to be one of such benefits. This paper explores the eNaira CBDC and its potential to increase financial inclusion in Nigeria. I show that the eNaira CBDC can increase financial inclusion by (i) offering an easy account opening process for greater financial inclusion (ii) enabling digital access to diverse financial services in the financial system, (iii) offering low-cost financial products and services, (iv) avoiding unexplained bank charges that causes financial exclusion, (v) attracting people who have lost confidence in banks, (vi) introducing interest-bearing eNaira, and (vii) using offline channels to access the eNaira.
    Keywords: Nigeria, eNaira, central bank digital currency, CBDC, financial inclusion, eNaira wallet.
    JEL: E50 E52 E58 G21
    Date: 2023
  3. By: Jeremy Srouji (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, ISS - International Institute of Social Studies (ISS), Erasmus University Rotterdam); Dominique Torre (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur)
    Abstract: The COVID-19 pandemic has had a profound impact on payment systems and preferences around the world, reducing the use of cash in favor of digital payment instruments and accelerating the discussion around the need for a central bank digital currency. This article presents the digital payments and cashless agenda before and after the pandemic, focusing on how the changing payments landscape has influenced the priorities and decisions of regulators, banks and other financial intermediaries, with regards to the future shape of payment systems. It finds that while the pandemic demonstrated the benefits associated with building an advanced, competitive and integrated digital payments ecosystem , it has also brought to the forefront more fragmentation than convergence between payment systems in different regions of the world.
    Keywords: central bank digital currency (CBDC), digital payments, mobile money, cashless, payment systems, NFC, e-wallets
    Date: 2022–11–26
  4. By: Nanaeva, Zhamal; Aysan, Ahmet Faruk; Shirazi, Nasim Shah
    Abstract: Rapid developments and the adoption of financial technologies (Fintech) lead to radical changes in the delivery of financial services, including enabling fast payment systems. The recent Covid-19 pandemic catalyzed these processes, while Open Banking supports their further advancement. The concept of Open Banking is gaining global recognition for integrating innovative financial service providers into the sustainable financial ecosystem. This paper discusses Open Banking, including its core building blocks, prospects, and challenges. Given the European Union's pioneering role in adopting Open Banking regulations, the paper also reviews the revised Payment Services Directive (PSD2) and its role in advancing the European fast payment systems. Furthermore, the paper analyzes the practical implications of the PSD2 in Germany by reviewing the examples of the banking-as-a-service platform and the Islamic digital bank, Solarisbank and Insha, respectively. Finally, the paper sheds light on the benefits of Open Banking for ecosystem stakeholders, including fast payment system providers, and what they can derive from the introduction of Open Banking regulations.
    Keywords: Open Banking, PSD2, Fintechs, Payment Services, Insha, Solarisbank
    JEL: E49 G19 O35 P16 Q01
    Date: 2021–10–31
  5. By: Julia Cagé (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Nicolas Hervé (INA - Institut National de l'Audiovisuel); Béatrice Mazoyer (médialab - médialab (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: Social media affects not only the way we consume news, but also the way news is produced, including by traditional media outlets. In this paper, we study the propagation of information from social media to mainstream media, and investigate whether news editors' editorial decisions are influenced by the popularity of news stories on social media To do so, we build a novel dataset including a representative sample of all the tweets produced in French between August 1st 2018 and July 31st 2019 (1.8 billion tweets, around 70% of all tweets in French) and the content published online by 200 mainstream media outlets. We then develop novel algorithms to identify and link events on social and mainstream media. To isolate the causal impact of popularity, we rely on the structure of the Twitter network and propose a new instrument based on the interaction between measures of user centrality and "social media news pressure" at the time of the event. We show that story popularity has a positive effect on media coverage, and that this effect varies depending on the media outlets' characteristics, in particular on whether they use a paywall. Finally, we investigate consumers' reaction to a surge in social media popularity. Our findings shed new light on our understanding of how editors decide on the coverage for stories, and question the welfare effects of social media.
    Keywords: Internet, Information spreading, News editors, Network analysis, Social media, Twitter, Text analysis
    Date: 2022–05–31
  6. By: Nanaeva, Zhamal; Aysan, Ahmet Faruk
    Abstract: The present-day financial system is being influenced by the rapid development of Fintech (financial technology), which are technologies created to improve and automate traditional forms of finance for businesses and consumers. The topic of Fintech as a financial disruptor is gaining popularity in line with the swift spread of digitalization across the banking industry, whereby this paper contributes to the field by presenting a novel bibliometric analysis of academic literature related to Fintech as a financial disruptor. The analysis is based on metadata extracted from the Scopus database through the VOSviewer and Biblioshiny software. The bibliometric analysis of 363 documents identified the most impactful sources of publication, keywords, authors, and most cited documents on the topic of Fintech as a financial disruptor. As our analysis demonstrates, the number of publications on the given topic increases, defining both the interest among academia and the potential for future research.
    Keywords: Fintech, disruption, transformation, bibliometric analysis
    JEL: G10
    Date: 2021–06
  7. By: Oz Shy; Joanna Stavins
    Abstract: Banks impose a variety of account fees, and credit card issuers impose a variety of fees related to card usage. Using detailed data from a 2021 representative diary survey of US consumers, we investigate whether lower-income consumers and Black consumers are more likely to pay bank account or credit card fees, and how payment behavior varies depending on paying such fees. We find that the probability of paying several types of bank account and credit card fees is correlated with consumers’ demographic attributes and payment behavior. The percentage of Black consumers who pay overdraft or low-balance fees on their bank accounts or pay late fees or cash-advance fees on their credit cards is higher than the percentage of White consumers who pay those fees. We find that lower-income consumers were significantly more likely to pay overdraft fees, and Black consumers were significantly more likely to pay any bank account fee when we hold income and account balances constant in the regressions. However, when controlling for income, we find that the race effect was smaller than in the summary statistics.
    Keywords: payment choice; bank account fees; credit card fees; fees by demographics
    JEL: D14 G21 G5
    Date: 2022–08–01
  8. By: Erik Brynjolfsson; Long Chen; Xijie Gao
    Abstract: E-commerce sales have grown rapidly worldwide, massively increasing the availability of new products. We examine data from the largest digital platform in China and find that the number of book titles almost doubled, prices fell somewhat, and most new books are sold to consumers with unusual tastes. Demand for these niche products was significantly more inelastic than that of mass products. Embedding the estimates of demand elasticity into a two-segment CES framework, we find the welfare gain from increased variety was about 40 times the gain from lower prices and that rural consumers enjoyed the largest gains.
    JEL: O0
    Date: 2022–12
  9. By: Carli, Francesco; Uras, Burak
    Abstract: We develop a micro-founded monetary model to inquire the role of a privately provided e-money instrument for household consumption smoothing and welfare. Different from fiat money, e-money users pay electronic transaction fees, but in turn e-money reduces spatial separation frictions and enables risk-sharing. We characterize the conditions that promotes e-money to be Pareto improving and the conditions when e-money reduces its users' welfare - despite for the consumption-smoothing it induces. We calibrate our model for the context of M-Pesa in Kenya and conduct a quantitative analysis. Since our quantitative analysis reveals a limited role for privately provided e-money, we recommend the optimality of e-money regulation.
    Keywords: E-Money, M-Pesa, Risk-Sharing, Welfare, Monetary Policy
    JEL: E41 E44 G23 O11
    Date: 2022
  10. By: Lin William Cong; Xi Li; Ke Tang; Yang Yang
    Abstract: We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and nature; abnormal first-significant-digit distributions, size rounding, and transaction tail distributions on unregulated exchanges reveal rampant manipulations unlikely driven by strategy or exchange heterogeneity. We quantify the wash trading on each unregulated exchange, which averaged over 70% of the reported volume. We further document how these fabricated volumes (trillions of dollars annually) improve exchange ranking, temporarily distort prices, and relate to exchange characteristics (e.g., age and userbase), market conditions, and regulation.
    JEL: G18 G23 G29
    Date: 2022–12
  11. By: BOSCH Jaume Martin; TANGI Luca (European Commission - JRC); BURIAN Peter
    Abstract: This report provides an overview and analysis of the status of blockchain technology implementation in Europe’s public sector. An inventory of 167 blockchain technology use cases from national, regional and local European governments map the use of blockchain technology in public services. Each use case provides insights into the level of adoption of this technology. The findings highlight the use of blockchain technology by public administrations as an overall positive trend and that blockchain technology could significantly improve the effectiveness and efficiency of public administrations. However, public administration must take many steps before blockchain technology can solve their real-life challenges. The breaking down of barriers to blockchain technology adoption requires significant consideration by policymakers. Progress in this area will depend on increasing efforts to implement more large-scale use cases, facilitating collaboration between organisations and providing legal certainty. These results contribute to the existing body of knowledge on the topic by moving from a more theoretical and anecdotal view to a more systematic analysis based on concrete examples.
    Keywords: blockchain
    Date: 2022–12
  12. By: Ellie Rennie (RMIT University - Royal Melbourne Institute of Technology University); Michael Zargham (Vienna University of Economics and Business - WU - Wirtschaftsuniversität Wien [Austria]); Joshua Tan (Stanford University, University of Oxford [Oxford]); Luke Miller; Jonathan Abbott; Kelsie Nabben (RMIT University - Royal Melbourne Institute of Technology University); Primavera de Filippi (Harvard University [Cambridge], CERSA - Centre d'Etudes et de Recherches de Sciences Administratives et Politiques - CNRS - Centre National de la Recherche Scientifique - Institut Cujas - Université Paris-Panthéon-Assas)
    Abstract: Blockchain governance occurs through a combination of social and technical activities, involving smart contracts, deliberation within a group, and voting. These processes are significant as they demonstrate how governance of distributed infrastructures is evolving. While typologies of blockchain governance can be constructed by gathering on-chain interactions and formal rules, other aspects are more difficult to observe, including governance interactions occurring inside discussion forums. In this paper we discuss a participatory digital ethnography technique, whereby participants and researchers use a bespoke bot to identify governance interactions occurring within project forums (on Discord). The technique is designed to be used in conjunction with analysis of software for the purpose of mapping and understanding the 'governance surface' of different protocols. We describe our tools and methods for understanding automated futures through a case study of the SourceCred community, an organization using, developing and maintaining open source software called SourceCred. The SourceCred codebase is also used by other decentralised communities for various organisational functions, including reputation and compensation.
    Keywords: Digital ethnography, Blockchain governance, Participatory methodologies, Automation
    Date: 2022
  13. By: Armand F. Akpa (Université d’Abomey-Calavi, Benin); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Financial inclusion is a necessary condition for the population to get access to credit. Despite the efforts made by governments and policy makers, the rate of financial inclusion in Sub-Saharan African (SSA) countries remains low. The internet can be one of the options to increase the rate of financial inclusion in SSA. But the use of internet in SSA remains low due to the poor quality of the internet and to its high cost. So, good governance quality can consolidate internet infrastructure in order to promote the internet. This paper analyses the role of governance quality in the relationship between internet and financial inclusion in Sub-Saharan African countries. The study utilises data from the International Monetary Fund (IMF) database for indicators of financial inclusion, World Development Indicators (WDI) for internet users and World Governance Indicators (WGI) for governance indicators over the period 2004 to 2020. Analysing the data using the System Generalized Method of Moments (SGMM), the results show that the internet can be effectively complemented with the quality of governance to improve financial inclusion.Thresholds of governance that are needed for the internet to promote financial inclusion are provided. The established thresholds are as follows: (i) 0.300 “voice and accountability†and “government effectiveness†, respectively; (ii) 0.250 “rule and law†; (iii) 2.500 “economic governance†and (iv) 1.000 “institutional governace†and “general governance†, respectively. Policies aimed at reinforcing the quality of governance in SSA countries could help consolidate internet infrastructure to promote internet usage and in turn improve financial inclusion.
    Keywords: Internet, financial inclusion, governance quality
    JEL: O30 G20 H11
    Date: 2023–01
  14. By: Nienhüser, Werner; Peetz, David; Murray, Georgina; Troup, Carolyn
    Abstract: Public debates have been transformed by the internet and social media. This survey of employees in Germany and Australia asks: How are attitudes to unions shaped by use of traditional and social media and the internet? The results show that greater reliance on the internet and the use of social media tend to have a positive influence on trade union attitudes in both countries. It appears that even if social media spread anti-social conspiracy memes, they have little net effect in spreading anti-union ideology and may even be potentially useful for disseminating pro-union ideas.
    Keywords: social media, trade unions, attitudes
    JEL: J51
    Date: 2022
  15. By: Ozili, Peterson K
    Abstract: This paper analyzes global interest in internet information about decentralized finance (DeFi), embedded finance (EmFi), open finance (OpFi), ocean finance (OcFi) and sustainable finance (SuFi) and the relationship among them. The findings reveal that global interest in internet information about embedded finance (EmFi) was more popular in Asian and European countries. Global web search for internet information about OcFi decreased during the financial crisis while global web search for internet information about OpFi and EmFi increased during financial crisis years. Global web search for internet information about DeFi, SuFi and EmFi increased during the pandemic years. There is a significant positive correlation between global interest in decentralized finance, embedded finance, ocean finance and sustainable finance information. Also, there is a significant negative correlation between global interest in embedded finance information and global interest in open finance information. The regression coefficient matrix shows that global interest in information about open finance, embedded finance, ocean finance, decentralized finance and sustainable finance are significantly related.
    Keywords: information technology, internet, decentralized finance, open finance, embedded finance, ocean finance, sustainable finance.
    JEL: G00 G21 Q56
    Date: 2023
  16. By: KhafidzinAli, M.
    Abstract: The convergence of media is one of the development of mass media that involve many technological factors in it. The existence of the internet encourages the media to apply the concept of convergence of media such as online media, e-paper, e-books, social media, and others. Competition in the media business is one factor driving the mass media to apply this concept because the mass media today does not merely rely on printed formarts like as newspapers, magazines, books alone. Media convergence innovation is deemed necessary so that the mass media be able to remain competitive in today's media business era. As one of the innovations in mass media, media convergence requires a variety of processes and stages in the application. This paper will explore th process of diffusion of convergence innovation in the daily news Pikiran Rakyat. This qualitative study describes how media convergence is adopted by the mass media in stages.
    Date: 2022–12–13
  17. By: Alexis Asseman; Tomasz Kornuta; Aniruth Patel; Matt Deible; Sam Green
    Abstract: The Graph Protocol indexes historical blockchain transaction data and makes it available for querying. As the protocol is decentralized, there are many independent Indexers that index and compete with each other for serving queries to the Consumers. One dimension along which Indexers compete is pricing. In this paper, we propose a bandit-based algorithm for maximization of Indexers' revenue via Consumer budget discovery. We present the design and the considerations we had to make for a dynamic pricing algorithm being used by multiple agents simultaneously. We discuss the results achieved by our dynamic pricing bandits both in simulation and deployed into production on one of the Indexers operating on Ethereum. We have open-sourced both the simulation framework and tools we created, which other Indexers have since started to adapt into their own workflows.
    Date: 2022–12
  18. By: Miglo, Anton
    Abstract: Crowdfunding is an innovative and fastly growing way of financing for entrepreneurial firms. England is the leading country in crowdfunding. Yet no research exists that compare different cities of UK with regard to the conditions of crowdfunding emergence. In this article we shed some light on this question. We have found that cities with better access to ultrafast broadband among households and cities with greater number of people with higher education have significantly better results in crowdfunding. Further we find that entrepreneurs in these cities select lower crowdfunding targets and are more likely to publish a spotlight about their ideas suggesting that entrepreneurs in these cities understand the importance of imperfect information and signalling (direct and indirect) in crowdfunding. We also discuss these findings in light of crowdfunding theories.
    Keywords: crowdfunding, reward-based crowdfunding, crowdfunding in technology sector, digital entrepreneurship, information asymmetry, signalling, factors of crowdfunding success, campaign target
    JEL: G32 L26 M21
    Date: 2022
  19. By: Arba'atun, khoerun Nissa
    Abstract: Currently, the use of online shopping applications is prevalent among the public. Both older adults, teenagers, and even children. Online shopping applications can save time, effort, and even costs. But only a few people are wise enough to shop online. Moreover, each application offers various conveniences that tempt consumers. For example, the Shopee application offers the Shopee Pay later feature. With this feature, the general public can easily buy goods but pay later in monthly installments and, of course, with an additional fee (interest). One of the intended marketing targets of this feature is students and university students. Students who are basically educated and generally still rely on pocket money from their parents should be able to control themselves in terms of consumption. However, it is common for students who already have their income. There is a need to research how much influence Shopee Pay later has on student consumptive behavior. This study uses a descriptive qualitative approach. The study's results explain that shop Pay later can influence student consumer behavior.
    Date: 2022–12–13
  20. By: Guy Aridor; Duarte Gonçalves; 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.
    Keywords: recommender systems, information acquisition, field experiment
    JEL: D83 D47 D12 L15 M37
    Date: 2022
  21. By: Ozili, Peterson K
    Abstract: Financial inclusion has been a global development policy priority over the last two decades. Financial inclusion involves providing access to basic financial services and the use of basic financial services to improve the welfare of individuals, households, and businesses. This article identifies the fault lines or vulnerabilities in the way financial inclusion is achieved. These fault lines or vulnerabilities arise from the over-reliance on profit-oriented financial institutions to achieve financial inclusion, the multiple self-interest in the financial inclusion agenda, the unsustainability of policy-induced demand for basic financial services, the lack of safety net to protect poor banked adults from systemic risk events, and the prevalence of financial inclusion-washing that allow agents to misrepresent their support for financial inclusion. The article argued that the world needs to pay serious attention to these fault lines and seek solutions that promote financial inclusion in a sustainable way. The ideas in this article can help policymakers, academics, practitioners, and researchers in assessing the fault lines created by financial inclusion policies and strategies as this is the first step to finding solutions to address the fault lines.
    Keywords: Access to finance, banked adults, fault lines, financial inclusion, financial institutions, formal account.
    JEL: G21 G28 I31
    Date: 2022
  22. By: Charles Angelucci (MIT - Massachusetts Institute of Technology); Julia Cagé (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEPR - Center for Economic Policy Research - CEPR); Michael Sinkinson (Yale University [New Haven], NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research)
    Abstract: Technological innovations in content delivery, such as the advent of broadcast television or of the Internet, threaten local newspapers' ability to bundle their original local content with third-party content such as wire national news. We examine how the entry of television-with its initial focus on national news-affected local newspapers as well as consumer news diets in the United States. We construct a novel dataset of U.S. newspapers' economic performance and content choices from 1944 to 1964 and exploit quasi-random variation in the rollout of television to show that this new technology was a negative shock in both the readership and advertising markets for newspapers. Newspapers responded by providing less content, particularly local news. We tie this change towards increasingly nationalized news diets to an increase in party vote share congruence between Congressional and Presidential elections.
    Keywords: Media, Local News, Television, Newspapers, Advertising, Bundling, Split-Ticket Voting
    Date: 2022
  23. By: Ozili, Peterson K
    Abstract: This article advocates a new addition to the theories of financial inclusion which is the institutional theory of financial inclusion. The case for a new theory arises from the role of institutions or non-market structures in influencing the level of financial inclusion. Postulating an institutional theory of financial inclusion is important due to the need to understand financial inclusion from the context of institutions and non-market structures that people have a great deal of trust in. The institutional theory of financial inclusion has the capacity to generate a wide range of testable hypotheses, and can provide the social scientist with tools that are relevant for understanding the broad spectrum of financial inclusion in society.
    Keywords: financial inclusion, institutions, institutional theory, access to finance, non-market structure, culture, unbanked adults, financial exclusion.
    JEL: G21 I31 P37
    Date: 2023
  24. By: Hoang, Daniel; Wiegratz, Kevin
    Abstract: We study how researchers can apply machine learning (ML) methods in finance. We first establish that the two major categories of ML (supervised and unsupervised learning) address fundamentally different problems than traditional econometric approaches. Then, we review the current state of research on ML in finance and identify three archetypes of applications: i) the construction of superior and novel measures, ii) the reduction of prediction error, and iii) the extension of the standard econometric toolset. With this taxonomy, we give an outlook on potential future directions for both researchers and practitioners. Our results suggest large benefits of ML methods compared to traditional approaches and indicate that ML holds great potential for future research in finance.
    Keywords: Machine Learning, Artificial Intelligence, Big Data
    JEL: C45 G00
    Date: 2022
  25. By: Cao, Bing-Bing; You, Tian-Hui; Ou, Carol (Tilburg University, School of Economics and Management); Zhu, Hui; Liu, Chun-Yi
    Date: 2022
  26. By: Maulida, Farah
    Abstract: Along with the development of the times, information technology is increasingly sophisticated. This can make it easier for people to interact and communicate remotely. This development has changed the habits in terms of buying and selling. Because previously buying and selling were only done face to face, but in the current era buying and selling can be done online, namely with electronic media. Buying and selling online can make it easier between sellers and buyers. Because sellers sell their wares, it's not difficult to open a stall or shop. Then the buyer also feels the convenience in terms of choosing goods with the desired criteria. This paper aims to find out how the law of buying and selling online according to Islam. The method used in this research is library research. The conclusion that can be obtained is buying and selling is exchanging assets for assets in certain ways. Meanwhile, according to fuqaha buying and selling is exchanging something for a price. Buying and selling in Islamic law have a legal basis, namely the Al-Qur'an surah Al Baqarah verse 275 which means: "Allah justifies selling but forbids usury". An act of Mu 'Amalah is permissible to do unless there is a prohibition from the religious sources of the Qur'an and Sunnah. Therefore, we are not allowed to prohibit something that is permitted by Allah SWT. and may not prevent something that has been prohibited by Allah SWT. Likewise, buying and selling online while still fulfilling the pillars and conditions of buying and selling and there are no things that forbid it, buying and selling online is allowed or prohibited. Keywords: Buying and selling, Online, Law, Islam
    Date: 2022–12–12
  27. By: Noland, Marcus
    Abstract: For the last quarter century, Asia has been seeking greater autonomy within the existing international monetary system. While the region has had the resources to go its own way, intraregional rivalries, and a reluctance to damage ties to the US and the International Monetary Fund, have put a damper on regional initiatives. Now the ascendency of China offers a path toward greater regional autonomy in monetary affairs. Asia, led by China, has been playing a two-track strategy pushing for greater influence within the existing global institutions, while developing its own parallel institutions such as the Chiang Mai Initiative Multilateralization, the Belt and Road Initiative, and the Asian Infrastructure Investment Bank. Use of the Chinese renminbi will likely grow as a trade invoicing currency but expanded use of the renminbi as a reserve currency is more uncertain. It is possible that the dollar-centered international financial system could evolve into a multipolar system with multiple currencies playing key roles.
    Keywords: international monetary system; Asia; China; renminbi
    JEL: F33 F53 N25
    Date: 2022–12–01
  28. By: Matthias Nadler; Felix Bekemeier; Fabian Sch\"ar
    Abstract: In this paper, we propose a fully decentralized and smart contract-based insurance protocol. We identify various issues in the Decentralized Finance (DeFi) insurance context and propose a solution to overcome these shortcomings. We introduce an economic model that allows for risk transfer without any external dependencies or centralized intermediaries. In particular, our proposal does not need any sort of subjective claim assessment, community voting or external data providers (oracles). Moreover, it solves the problem of over-insurance and proposes various ways to mitigate the capital inefficiencies usually seen with DeFi collateral. The work takes inspiration from peer-to-peer (P2P) insurance and collateralized debt obligations (CDO). We formally describe the protocol, assess its efficiency and key properties and present a reference implementation. Finally, we address limitations, extensions and ideas for further research.
    Date: 2022–12
  29. By: Charlson, G.
    Abstract: I examine inequalities arising from biases brought by the incentives and externalities present in data markets, where a data collector ultimately provides an end-service which is beneficial. Agents receive different prices for their data, which is valued according to the extent that it is representative of the data of non-participating agents. The service provider estimates the characteristics of high-cost and minority groups with less accuracy, leading to these groups receiving lower quality services on average, and lower utility in equilibrium. Data privacy policies tend to reduce such inequalities but at the cost of consumer surplus, while a subsidy strategy targeted at increasing the utility of those disadvantaged by data markets increases consumer surplus but may also widen inequality.
    Date: 2022–10–19
  30. By: Tsutomu Watanabe (Graduate School of Economics, University of Tokyo); Tomoyoshi Yabu (Faculty of Business and Commerce, Keio University)
    Date: 2022–12
  31. By: Silvia Miranda-Agrippino (Bank of England; Centre for Macroeconomics (CFM); Centre for Economic Policy Research (CEPR)); Tsvetelina Nenova (London Business School)
    Abstract: US monetary policy is not the only one with a global reach. We compare the international financial spillovers of the unconventional monetary policies of the Fed and the ECB. Monetary policy tightenings in both areas are followed by a global retrenchment in capital flows, a fall in global stock markets, and a rise in global risk measures. Thus, ECB and Fed monetary policies propagate internationally through equivalent transmission channels. ECB monetary policy shocks also affect significantly the US business and financial cycles. We produce tentative evidence that links the strength of the ECB international spillovers to the Euro exposure for both trade invoicing and the pricing of financial transactions.
    Keywords: Monetary Policy, Global Financial Cycle, International spillovers, Currency Pricing Paradigm, Fed, ECB
    JEL: F42 E52 G15
    Date: 2021–08
  32. By: Gary B. Gorton; Elizabeth C. Klee; Chase P. Ross; Sharon Y. Ross; Alexandros P. Vardoulakis
    Abstract: Money is debt that circulates with no questions asked. Stablecoins are a new form of private money that circulate with many questions asked. We show how stablecoins can maintain a constant price even though they face run risk and pay no interest. Stablecoin holders are indirectly compensated for stablecoin run risk because they can lend the coins to levered traders. Levered traders are willing to pay a premium to borrow stablecoins when speculative demand is strong. Therefore, the stablecoin can support a $1 peg even with higher levels of run risk.
    JEL: G0 G1 G10
    Date: 2022–12
  33. By: Ozili, Peterson K
    Abstract: This paper presents some policy ideas on how to achieve high levels of financial inclusion. It explores a number of policy options that can be used to achieve greater levels of financial inclusion. The paper argues that high levels of financial inclusion can be achieved by reducing interest rate; introducing conditional low interest rate; supporting monetary policies with welfare payments; reducing taxes; using targeted government spending; supporting fiscal policies with tax rebate, tax holiday or tax exemption; grant tax rebate to financial institutions; financial inclusion-environment decoupling; and de-risking the financial system.
    Keywords: financial inclusion, unbanked adults, interest rate, monetary policy, fiscal policies, environment, financial system, financial institutions, digital finance, tax.
    JEL: G21 G28
    Date: 2022
  34. By: Gutiérrez, Antonio
    Abstract: This paper empirically analyses the entrepreneurship gender gap and geographic variations of the entrepreneurship culture in the United States. To do so, we use Google search engine queries. First, we construct a composite index using factor analysis on searches related to entrepreneurship. Second, we explored the degree of local sexism that exists across the United States. Therefore, we use a simple index that represents sexist queries made on the search engine. The results indicate a positive and statistically significant correlation between the composite index and the number of companies based in each market area. The local sexism index fails to explain the gender gap in entrepreneurship. Conversely, it is intra-household decisions and the proportion of individuals in each age group that show statistically significant correlations with the entrepreneurship gender gap.
    Keywords: entrepreneurship; gender gap; entrepreneurship culture; Google Trends; Big Data
    JEL: J16 J71 L26 O51
    Date: 2023–01
  35. By: Labrador, Lucas Rodolfo
    Abstract: El presente trabajo tiene como objeto analizar el tratamiento a otorgar por los distintos sujetos incluidos en la ley del impuesto a las ganancias y en la ley de bienes personales, a la tenencia y operaciones realizadas con criptomonedas o monedas digitales como fueron contempladas en sistema tributario argentino a través de la ley 27430. Esta reforma, modificó el objeto del impuesto a las ganancias y paso a gravar ganancias generadas por inversiones que estaban exentas o fuera del ámbito del impuesto para personas humanas o beneficiarios del exterior.
    Keywords: Impuestos; Criptoactivos; Argentina;
    Date: 2022–12–12

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.