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on Payment Systems and Financial Technology |
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Issue of 2023‒04‒10
twenty-six papers chosen by |
| By: | Ms. Sandra Marcelino; Weicheng Lian; Ms. Nan Geng; Mr. Yorbol Yakhshilikov; Mr. Takuji Komatsuzaki; Maximiliano Appendino; Olga Bespalova; Jean François Clevy; Justin Lesniak; Ms. Rina Bhattacharya; Mr. Mauricio Villafuerte |
| Abstract: | After providing a general overview of the nature, pros, and cons of crypto assets and CBDCs, this paper focuses on documenting their recent experience in LAC. The region records a high interest in unbacked crypto assets and stablecoins and its authorities’ policy responses have varied substantially, ranging from the introduction of Bitcoin as legal tender in El Salvador to their prohibition in many other countries worried about their impact on financial stability, currency/asset substitution, tax evasion, corruption, and money laundering. This paper also describes briefly the results of a survey on CBDCs’ introduction plans and crypto assets regulation. Finally, this paper presents some general lessons and policy recommendations for the region on the regulation of cypto assets, digital currencies and cross-border payments, and on the potential introduction of CBDCs. |
| Keywords: | crypto assets regulation; asset substitution; CBDCs in Latin America and the Caribbean; Policy recommendation; cypto assets; IMF working paper 23/37; Virtual currencies; Central Bank digital currencies; Digital currencies; Payment systems; Currencies; Caribbean; Central America; South America; Global |
| Date: | 2023–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/037&r=pay |
| By: | Akram, Muhammad Waseem |
| Abstract: | Currently, businesses located all over the world are adjusting to a new standard of operation. Customers are encouraged to make their purchases of necessities through the favored e-commerce platform of the organization. For the purpose of marketing web-based enterprises, websites such as Facebook, Twitter, Instagram, and Pinterest are utilized. The purpose of the study was to investigate how the COVID-19 epidemic altered the purchase patterns of Pakistani customers shopping online, with a particular emphasis on the role played by social media. The study utilized a quantitative research model and a descriptive research technique in its data collection and analysis. In order to obtain responses from 400 Pakistani clients, an online questionnaire employing the "purposive sampling" method was used. When looking at the data and putting the hypothesis to the test, PLS-SEM analysis was utilized. During the COVID-19 pandemic in Pakistan, a PLS-SEM study indicated that advertising tools, online reviews, and endorsements from celebrities had a favorable and significant effect on how individuals bought products online. According to the findings of this study, online businesses can improve their use of social media for marketing and advertising by following a number of particular measures. Customers have a greater propensity to make purchases via social media platforms when they come across favorable evaluations and recommendations from celebrities. |
| Date: | 2023–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:qwg2d&r=pay |
| By: | Petra Tschuchnig; Manfred Mayr; Maximilian Tschuchnig; Peter Haber |
| Abstract: | The network economical sharing economy, with direct exchange as a core characteristic, is implemented both, on a commons and platform economical basis. This is due to a gain in importance of trust, collaborative consumption and democratic management as well as technological progress, in the form of near zero marginal costs, open source contributions and digital transformation. Concurrent to these commons-based drivers, the grey area between commerce and private exchange is used to exploit work, safety and tax regulations by central platform economists. Instead of central intermediators, the blockchain technology makes decentralized consensus finding, using Proof-of-Work (PoW) within a self-sustaining Peer-to-Peer network, possible. Therefore, a blockchain-based open source mediation seems to offer a commons-compatible implementation of the sharing economy. This thesis is investigated through a qualitative case study of Sardex and Interlace with their blockchain application, based on expert interviews and a structured content analysis. To detect the most commons-compatible implementation, the different implementation options through conventional platform intermediators, an open source blockchain with PoW as well as Interlaces' permissioned blockchain approach, are compared. The following confrontation is based on deductive criteria, which illustrates the inherent characteristics of a commons-based sharing economy. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.07786&r=pay |
| By: | Justus Meyer; Federica Teppa |
| Abstract: | This paper contributes to understanding consumers' payment behaviour and digitalisation in personal finances. We study individuals' payment choices, the availability of cashless payments in everyday situations and the use of banking apps in the euro area. Using the European Central Bank (ECB) Consumer Expectations Survey (CES), we find that most people prefer to use only one payment instrument, mostly cash, partly due to supply constraints in accepting non-cash payments. We also find substantial cross-country heterogeneity. Our results highlight the prominent role of demographic factors in choosing non-cash payment options and app-based tools in managing personal finances. While mobile banking is already popular among euro area consumers, using smart (device) payment methods remains very limited. |
| Keywords: | Consumer Payment Behaviour; Banking Digitalisation; Consumer Expectations Survey (CES) |
| JEL: | D12 C13 O33 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:772&r=pay |
| By: | Marcin W\k{a}torek; Jaros{\l}aw Kwapie\'n; Stanis{\l}aw Dro\.zd\.z |
| Abstract: | In this study the cross-correlations between the cryptocurrency market represented by the two most liquid and highest-capitalized cryptocurrencies: bitcoin and ethereum, on the one side, and the instruments representing the traditional financial markets: stock indices, Forex, commodities, on the other side, are measured in the period: January 2020--October 2022. Our purpose is to address the question whether the cryptocurrency market still preserves its autonomy with respect to the traditional financial markets or it has already aligned with them in expense of its independence. We are motivated by the fact that some previous related studies gave mixed results. By calculating the $q$-dependent detrended cross-correlation coefficient based on the high frequency 10 s data in the rolling window, the dependence on various time scales, different fluctuation magnitudes, and different market periods are examined. There is a strong indication that the dynamics of the bitcoin and ethereum price changes since the March 2020 Covid-19 panic is no longer independent. Instead, it is related to the dynamics of the traditional financial markets, which is especially evident now in 2022, when the bitcoin and ethereum coupling to the US tech stocks is observed during the market bear phase. It is also worth emphasizing that the cryptocurrencies have begun to react to the economic data such as the Consumer Price Index readings in a similar way as traditional instruments. Such a spontaneous coupling of the so far independent degrees of freedom can be interpreted as a kind of phase transition that resembles the collective phenomena typical for the complex systems. Our results indicate that the cryptocurrencies cannot be considered as a safe haven for the financial investments. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.00495&r=pay |
| By: | Mr. Andrea F Presbitero; Sumit Agarwal; Andre Silva; Carlo Wix |
| Abstract: | We study credit card rewards as an ideal laboratory to quantify redistribution between consumers in retail financial markets. Comparing cards with and without rewards, we find that, regardless of income, sophisticated individuals profit from reward credit cards at the expense of naive consumers. To probe the underlying mechanisms, we exploit bank-initiated account limit increases at the card level and show that reward cards induce more spending, leaving naive consumers with higher unpaid balances. Naive consumers also follow a sub-optimal balance-matching heuristic when repaying their credit cards, incurring higher costs. Banks incentivize the use of reward cards by offering lower interest rates than on comparable cards without rewards. We estimate an aggregate annual redistribution of $15 billion from less to more educated, poorer to richer, and high to low minority areas, widening existing disparities. |
| Keywords: | household finance; credit cards; financial sophistication; rewards |
| Date: | 2023–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/054&r=pay |
| By: | Kräussl, Roman; Tugnetti, Alessandro |
| Abstract: | This paper provides a review of the development of the non-fungible tokens (NFTs) market, with a particular focus on its pricing determinants, its current applications and future opportunities. We investigate the current state of the NFT markets and highlight the perception and expectations of investors towards these products. We summarize and compare the financial and econometric models that have been used in the literature for the pricing of non-fungible tokens with a special focus on their predictive performance. Our intention is to design a framework that can help understanding the price formation of NFTs. We further aim to shed light on the value creating determinants of NFTs in order to better understand the investors' behavior on the blockchain. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:693&r=pay |
| By: | Barbara Meller; Oscar Soons |
| Abstract: | How would a central bank digital currency impact the balance sheets of the central bank and commercial banks? To tackle this question empirically, we propose a constraint optimisation model that allows individual banks to choose how to respond to deposit outflows, minimizing their costs subject to bank-specific and system-wide reserve and collateral availability and different liquidity risk preferences. We simulate the impact of a fictitious digital euro introduction in Q3-2021 using data from over 2, 000 euro area banks. The simulated impact depends on i) the amount of deposits that are withdraw and the speed at which this occurs, ii) the available liquidity in the banking system at the time of a potential digital euro introduction, iii) markets’ and supervisors’ liquidity risk preferences, iv) the bank’s business model, and v) the functioning of the interbank market. For the case of the digital euro, Bindseil (2020) and Bindseil and Panetta (2020) have suggested a €3, 000 digital euro holding limit per person. We illustrate that with such a limit, even in extremely pessimistic scenarios, the impact on banks’ liquidity risk and funding structure and on the Eurosystem balance sheet would have been contained. |
| Keywords: | digital currency; financial intermediation; financial stability; liquidity risk; euro area |
| JEL: | E52 E58 G21 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:771&r=pay |
| By: | MOTOHASHI Kazuyuki |
| Abstract: | As the use of AI and big data advances in the manufacturing industry, we are seeing changes in manufacturing, including the shift to digital services. In this paper, we used platform theory to examine the current state of digital innovation in the manufacturing industry and competitive strategies with other industries, including Internet platformers like GAFA. The IoT applications of existing companies such as Komatsu and GE are not in a position to directly compete with B2C Internet platformers, but the network effect of the platform economy will use the power to rapidly transform the industrial structure. As a manufacturing company, it is essential to promote the development of digital services that utilize customer data. In addition, the importance of strategies that focus on building an ecosystem that includes companies in other industries is increasing, and the ability to predict the future through scenario analysis and the ability to respond flexibly to changes in circumstances is required. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rpdpjp:23003&r=pay |
| By: | Burina Fujiwara |
| Abstract: | The economic bubble bursting resulted in a large number of non-performing loans in Japanese financial institutions, which weakened their functions and prevented them from extending credit for normal economic activities. However, cryptocurrency operations are thriving in Japan. In this way, this paper focuses on non-performing assets and cryptocurrencies. The goal is to use literature analysis methods to summarise the development process, types of issuance, mechanisms, evaluation models, application scenarios, and trends in how cryptocurrencies are supervised. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.07619&r=pay |
| By: | Benjamin Le Pendeven (Audencia Recherche - Audencia Business School); Armin Schwienbacher (SKEMA Business School) |
| Abstract: | This article examines the impact of perceived innovativeness on the success of equity crowdfunding campaigns. Building on the investor perspective, we hypothesize a positive impact of perceived innovativeness on the campaign outcome. Our database covers 191 campaigns launched in France on different platforms, drawing on over 2, 000 individual assessments of the perceived innovativeness of the start-ups involved, carried out by 176 participants with diverse backgrounds. We find support for our hypothesis from the investor perspective in that highly innovative projects attract more crowd investors and, in turn, raise more capital. We contribute to the understanding of how the crowd makes investment choices. |
| Keywords: | equity crowdfunding, entrepreneurial finance, start-ups, innovativeness |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03948381&r=pay |
| By: | Schneck, Andreas; Przepiorka, Wojtek (Utrecht University) |
| Abstract: | We propose a simple yet comprehensive conceptual framework for the identification of different sources of error in research with digital behavioral data. We use our framework to map potential sources of error in 25 years of research on reputation effects in peer-to-peer online market platforms. Using a meta-dataset comprising 346 effect sizes extracted from 109 articles, we apply meta-dominance analysis to quantify the relative importance of different error components. Our results indicate that 85% of explained effect size heterogeneity can be attributed to the measurement process, which comprises the choice of platform, data collection mode, construct operationalisation and variable transformation. Error components attributable to the sampling process or publication bias capture relatively small parts of the explained effect size heterogeneity. This approach reveals at which stages of the research process researcher decisions may affect data quality most. This approach can be used to identify potential sources of error in established strands of research beyond the literature of behavioral data from online platforms. |
| Date: | 2023–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:cy3wj&r=pay |
| By: | Amanda Dahlstrand |
| Abstract: | Digital platforms are transforming services by making the physical distance between provider and user less relevant. I quantify the potential gains this flexibility offers in the context of digital primary care in Sweden, harnessing nationwide conditional random assignment between 200, 000 patients and 150 doctors. I evaluate causal effects of matching patients of varying risks to doctors with different skills and assess counterfactual policies compared to random assignment. Matching patients at high risk of avoidable hospitalizations to doctors skilled at triaging reduces avoidable hospitalizations by 20% on aggregate - without affecting other adverse outcomes, such as counter-guideline antibiotics prescriptions. Conversely, matching the best triaging doctors to the richest patients leads to more avoidable hospitalizations, since the most vulnerable patients are often the poorest. Hence, remote matching can sever the link between local area income and service quality in favor of a needs-based assignment, improving the effectiveness and equity of service provision. |
| Keywords: | skills, labor markets, health and inequality |
| Date: | 2022–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1889&r=pay |
| By: | Tanya Araújo; Paulo Barbosa |
| Abstract: | The growing attention on cryptocurrencies has led to increasing research on digital stock markets. Approaches and tools usually applied to characterize standard stocks have been applied to the digital ones. Among these tools is the identification of processes of market fluctuations. Being interesting stochastic processes, the usual statistical methods are appropriate tools to their reconstruction. There, besides chance, the description of a behavioural component shall be present whenever a determinist pattern is ever found. Markov approaches are at the leading edge of this endeavour. In this paper, Markov chains of orders one to eight are considered as a way to forecast the dynamics of three major cryptocurrencies. It is accomplished using an empirical basis of intra-day returns. Besides forecasting, we investigate the existence of eventual long-memory components in each of those stochastic process. Results show that the average predictions obtained from using the empirical probabilities is better than random choices. |
| Keywords: | Markov chains, Criptocurrency, Forecasting, Market Processes |
| JEL: | D8 H51 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp02622023&r=pay |
| By: | Kunz-Kaltenhäuser, Philipp |
| Abstract: | The sport economic literature relies on the city size to proxy for the size of the home market of sports teams. This paper seeks to clarify whether the commonly used definition for home market size in sports economics is actually a valid measure for revenue potential in the modern digital age. Specifically, in this empirical exercise the interest is to investigate to what extent social media following is adding to our understanding of home markets. In doing so, it closely connects to the literature on outcome uncertainty, by considering the compounded season uncertainty for home games, and the literature on superstars in sport as a determinant for demand. The econometric analysis uses NFL stadium attendance data between 2009 and 2019 to examine the question of the relationship of social media and stadium attendance. It applies censored tobit models to estimate the effects. The results suggest a significant relationship between social media following and stadium attendance, even when controlling for the metropolitan area where the stadium is located. It argues that our commonly used definition of home market size is built on the outdated concept of localized markets and should be revisited. |
| Keywords: | home markets, national football league, social media, uncertainty of outcome, franchise reallocation, econometrics |
| JEL: | Z20 L83 D47 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:175&r=pay |
| By: | Flavio Calvino; Luca Fontanelli |
| Abstract: | This report analyses the use of artificial intelligence (AI) in firms across 11 countries. Based on harmonised statistical code (AI diffuse) applied to official firm-level surveys, it finds that the use of AI is prevalent in ICT and Professional Services and more widespread across large – and to some extent across young – firms. AI users tend to be more productive, especially the largest ones. Complementary assets, including ICT skills, high-speed digital infrastructure, and the use of other digital technologies, which are significantly related to the use of AI, appear to play a critical role in the productivity advantages of AI users. |
| Keywords: | AI, artificial intelligence, productivity, technology adoption |
| Date: | 2023–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2023/02-en&r=pay |
| By: | Zhi-Guang Li (School of Management, Hefei University of Technology, Hefei, China); Yanrui Wu (Business School, The University of Western Australia); Yao-Kuang Li (School of Management, Hefei University of Technology, Hefei, China) |
| Abstract: | Technology entrepreneurship and corporate innovation are important for the development of indigenous innovation. In the digital age, founders are subject to fundamental changes in their strategy choices, which in turn affect corporate innovation performance. This paper aims to explore the strategic choices adopted by technical founders of listed companies in China’s STAR market to reap the rewards of innovation in a digital context. Based on the annual reports of 124 listed companies in China’s STAR Market, this paper applies machine learning methods to quantify digital transformation of enterprises, and empirically analyzes the relationship between technical founders and innovation performance by constructing a moderated mediating model. Our results show that companies with technical founders are more likely to adopt digital transformation and thus show better innovation performance. In terms of heterogeneity, the empirical results demonstrate that firms with technical founders show better performance in digital transformation, followed in turn by those with business founders and academic founders. Both the positive relationship between enterprise digital transformation and innovation performance and the mediating effect of digital transformation are positively moderated by venture capital or private equity support. The findings reveal the microscopic mechanism of the role of technology-based founders on corporate innovation performance and hence have practical implications for promoting corporate digital transformation and enhancing firm technological innovation. |
| Keywords: | Technical founder; Technological Innovation; Technology entrepreneurship; Digital transformation; Innovation performance; STAR Market |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:23-03&r=pay |
| By: | Hugo E. Ramirez; Juli\'an Fernando Sanchez |
| Abstract: | This paper studies the optimal liquidation of stocks in the presence of temporary and permanent price impacts, and we focus in the case of cryptocurrencies. We start by presenting analytical solutions to the problem with linear temporary impact, and linear and quadratic permanent impact. Then, using data from the order book of the BNB cryptocurrency, we estimate the functional form of the temporary and permanent price impact in three different scenarios: underestimation, overestimation and average estimation, finding different functional forms for each scenario. Using finite differences and optimal policy iteration, we solve the problem numerically and observe interesting changes in the optimal liquidation policy when applying calibrated linear and power forms for the temporary and permanent price impacts. Then, with these optimal policies, we identify optimal liquidation trajectories and simulate the liquidation of initial inventories to compare the performance among the optimal strategies under different parametrizations and against a naive strategy. Finally, we characterize the optimal policies based on the functional form of the inventory and find that policies generating the highest revenue are those starting with a low trading rate and increasing it as time passes. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.10043&r=pay |
| By: | Ricardo Descalzi; A. Enrique Neder |
| Keywords: | Señoreaje, Déficit Fiscal, Tipo de cambio real, cash-in-advance. |
| JEL: | E31 E42 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4461&r=pay |
| By: | Mahdi, Dhiyaul |
| Abstract: | Mencapai keseimbangan antara skalabilitas, keberlanjutan, dan keamanan sambil mempertahankan desentralisasi telah menjadi solusi target untuk aplikasi blockchain yang terdesentralisasi selama beberapa tahun terakhir. Beberapa pendekatan telah diusulkan oleh beberapa tim blockchain untuk mencapainya, Ethereum termasuk di antaranya. Ethereum berada di jalur peningkatan protokol utama yang disebut Ethereum 2.0 (Eth2), menerapkan Sharding dan memperkenalkan Proof-of-Stake (PoS). Karena perubahan mekanisme konsensus merupakan masalah yang rumit, peningkatan ini akan dicapai melalui fase yang berbeda, yang pertama adalah penerapan Beacon Chain. Sebagai Ethereum1, Eth2 mengandalkan jaringan peer-to-peer (p2p) terdesentralisasi untuk distribusi pesan. Hingga saat ini, ada lebih dari 17.500 node di jaringan utama Eth2 yang tersebar secara geografis. Namun, topologi yang satu ini masih belum diketahui. Dalam makalah ini, kami menyajikan hasil yang diperoleh dari analisis yang kami lakukan pada jaringan p2p Eth2. Menggambarkan topologi jaringan, kemungkinan bahaya yang disiratkan oleh yang satu ini (Cortes-Goicoechea and Bautista-Gomez, 2021). |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:fs5qj&r=pay |
| By: | David R. Agrawal; Weihua Zhao |
| Abstract: | Ride-hailing applications create new challenges for governments providing transit services, but also create new opportunities to raise tax revenue. To shed light on the effect of taxing or subsidizing ride-hailing applications, we extend a pseudo-monocentric city model to include multiple endogenously chosen transportation modes, including ride-hailing applications and endogenous car ownership. We show that most tax and spending programs that cities have currently adopted mildly increase public transit usage. However, the model predicts more significant increases in public transit ridership when ride-hailing applications are subsidized as a “last-mile” provider. Our model indicates that whether ride-hailing services and public transit are substitutes or complements is a policy choice. |
| Keywords: | ride-hailing, taxation, public transit, traffic congestion, optimal tolls |
| JEL: | C60 H25 H71 L88 L98 R41 R51 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10313&r=pay |
| By: | Kräussl, Roman; Rinne, Kalle; Sunc, Huizhu |
| Abstract: | Venture capital (VC) funds backed by large multi-fund families tend to perform substantially better due to cross-fund cash flows (CFCFs), a liquidity support mechanism provided by matching distributions and capital calls within a VC fund family. The dynamics of this mechanism coincide with the sensitivity of different stage projects owing to market liquidity conditions. We find that the early-stage funds demand relatively more intra-family CFCFs than later-stage funds during liquidity stress periods. We show that the liquidity improvement based on the timing of CFCF allocation reflects how fund families arrange internal liquidity provision and explains a large part of their outperformance. |
| Keywords: | Venture capital, Fund family, Subsidization, Liquidity, Performance |
| JEL: | G24 G23 G34 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:695&r=pay |
| By: | Gutierrez-Lythgoe, Antonio |
| Abstract: | This study empirically analyzes the effect of social connectivity between counties in the United States on their self-employment rate. To do this, we use the Social Connectivity Index, which indicates the degree of social connectivity between two regions based on the friendship relationships among users of the Facebook social network. e observed that social connectivity with counties with high self-employment rates is positively and statistically correlated with a county's self-employment rate, while unemployment rate, median household income, and population density are negatively correlated with the self-employment rate. In addition, statistically significant correlations were found between social connectivity and the self-employment rate in interaction with median household income, college education gap, median age, and percentage of male population. These findings suggest that social connection can influence the self-employment rate of a region, especially in those counties with lower median household income, higher education levels, and advanced age. |
| Keywords: | Self-employment; Social networks; Social Connectedness Index; Facebook; Big Data |
| JEL: | J23 L86 |
| Date: | 2023–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116656&r=pay |
| By: | Ariela Micha; Francisca Pereyra; Cecilia Poggi |
| Keywords: | Economía de plataformas, Género, Área Metropolitana de Buenos Aires |
| JEL: | J16 J31 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4491&r=pay |
| By: | Tyna Eloundou; Sam Manning; Pamela Mishkin; Daniel Rock |
| Abstract: | We investigate the potential implications of Generative Pre-trained Transformer (GPT) models and related technologies on the U.S. labor market. Using a new rubric, we assess occupations based on their correspondence with GPT capabilities, incorporating both human expertise and classifications from GPT-4. Our findings indicate that approximately 80% of the U.S. workforce could have at least 10% of their work tasks affected by the introduction of GPTs, while around 19% of workers may see at least 50% of their tasks impacted. The influence spans all wage levels, with higher-income jobs potentially facing greater exposure. Notably, the impact is not limited to industries with higher recent productivity growth. We conclude that Generative Pre-trained Transformers exhibit characteristics of general-purpose technologies (GPTs), suggesting that as these models could have notable economic, social, and policy implications. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.10130&r=pay |
| By: | Nicola Cantarutti; Alex Harker; Carter Woetzel |
| Abstract: | Silkswap is an automated market maker model designed for efficient stablecoin trading with minimal price impact. The original purpose of Silkswap is to facilitate the trading of fiat-pegged stablecoins with the stablecoin Silk, but it can be applied to any pair of stablecoins. The Silkswap invariant is a hybrid function that generates an asymmetric price impact curve. We present the derivation of the Silkswap model and its mathematical properties. We also compare different numerical methods used to solve the invariant equation. Finally, we compare our model with the well-known Curve Finance model. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.07822&r=pay |