nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒07‒17
thirty-one papers chosen by

  1. Cryptic Regulation of Crypto-Tokens By Joshua S. Gans
  2. The governance of blockchains and system based on distributed ledger technology By Carlo Gola; Valentina Cappa; Patrizio Fiorenza; Paolo Granata; Federica Laurino; Lorenzo Lesina; Francesco Lorizzo; Gabriele Marcelli
  3. Uncovering the digital payment divide: understanding the importance of cash for groups at risk By Carin van der Cruijsen; Jelmer Reijerink
  4. Digitalisation and labour markets in developing countries By Fietz, Katharina; Lay, Jann
  5. A Simple Model of a Central Bank Digital Currency By Mishra, Bineet; Prasad, Eswar
  6. The Pitfalls of the Certificate-Based User Authentication Scheme on Korean Public Websites: Implications for Cross-Platform and Cross-Browser Compatibility and End-User Computing By Hun Myoung Park
  7. The use of logic circuits to classify blockchains By Carlo Gola; Patrizio Fiorenza; Federica Laurino; Lorenzo Lesina
  8. Causality between Sentiment and Cryptocurrency Prices By Lubdhak Mondal; Udeshya Raj; Abinandhan S; Began Gowsik S; Sarwesh P; Abhijeet Chandra
  9. Bank profitability and central bank digital currency By Bellia, Mario; Calès, Ludovic
  10. Epidemic exposure, financial technology, and the digital divide By Saka, Orkun; Eichengreen, Barry; Aksoy, Cevat
  11. Blockchain-based Decentralized Co-governance: Innovations and Solutions for Sustainable Crowdfunding By Bingyou Chen; Yu Luo; Jieni Li; Yujian Li; Ying Liu; Fan Yang; Yanan Qiao
  12. Identifying key players in dark web marketplaces By Elohim Fonseca dos Reis; Alexander Teytelboym; Abeer ElBahraw; Ignacio De Loizaga; Andrea Baronchelli
  13. Examination of Supernets to Facilitate International Trade for Indian Exports to Brazil By Evan Winter; Anupam Shah; Ujjwal Gupta; Anshul Kumar; Deepayan Mohanty; Juan Carlos Uribe; Aishwary Gupta; Mini P. Thomas
  14. The Demand for Mobility: Evidence from an Experiment with Uber Riders By Peter Christensen; Adam Osman
  15. Are Cryptos Different? Evidence from Retail Trading By Shimon Kogan; Igor Makarov; Marina Niessner; Antoinette Schoar
  16. The Anatomy of the Financial Inclusion Gap in the Caucasus and Central Asia By Mr. Tigran Poghosyan
  17. Consumer vulnerability in the digital age By OECD
  18. Using Social Media to Train Aquaculture Farmers: Experimental Evidence from Bangladesh By Hossain, Marzuk; Mahmud, Tahmid Bin; Rahman, Khandker Wahedur; Sulaiman, Munshi
  19. The Proposed Naira Redesign, the Ensuing Cash Crunch, and Their Implications on the Nigerian Economy – Evidence from Q1 2023 By Oyadeyi, Olajide
  20. Digital Village Construction and Rural Income Structure: Evidence from Peking University Digital Village Index and China Household Finance Survey By Cao, Xiang; Yu, Chuanjiang; Yu, Jiayang; Jia, Nan
  21. Twitter and Citations By Ho Fai Chan; Ali Sina Önder; Sascha Schweitzer; Benno Torgler
  22. Well-being effects of the digital platform economy. The case of temporary and self- employment By Maite Blázquez; Ainhoa Herrarte; Ana I. Moro Egido
  23. Voice app (Google Actions and Alexa Skills) : the influence of the assistant's voice on users By Nicolas Kusz; Jean-François Lemoine
  24. Menu-pricing and Quality Decisions of a Platform Monopolist By Tetsuya Shinkai; Naoshi Doi
  25. Complementary Currencies and Liquidity: The Case of Coca-Base Money By Cristian Frasser; Lucie Lebeau
  26. When Cryptomining Comes to Town: High Electricity-use Spillovers to the Local Economy By Matteo Benetton; Giovanni Compiani; Adair Morse
  27. The perception of cyber risk in companies: design of a professional cyberscore for executives By Emilie Peneloux; Philippe Lépinard; Cécile Godé
  28. Crypto-asset markets: structure, stress episodes in 2022 and policy considerations By Giorgio Abate; Nicola Branzoli; Raffaele Gallo
  29. Do Gender-Neutral Job Ads Promote Diversity? Experimental Evidence from Latin America’s Tech Sector By Lucia Del Carpio; Thomas Fujiwara
  30. Benchmarking Adoption of E-Commerce Across the G20 Members By Tanu Goyal; Peter Morgan
  31. Gender, Entrepreneurship and Coping with the COVID-19 Pandemic: The Case of GoFood Merchants in Indonesia By Elhan-Kayalar, Yesim; Sawada, Yasuyuki; van der Meulen Rodgers, Yana

  1. By: Joshua S. Gans
    Abstract: This paper investigates the alignment of existing securities regulations with the emerging landscape of crypto-tokens and blockchain technology. By examining the features of these digital assets, including decentralization, consensus mechanisms, and programmability, we analyze how they interact with existing financial rules. We compare approaches to regulation across countries, considering potential impacts on innovation. Furthermore, we explore the issues that may arise with blockchain networks, such as payment efficiency and market safety. The study aims to contribute to discussions about balancing innovation within the blockchain sphere and ensuring investor protection and market security, underlining areas that may necessitate regulatory improvements.
    JEL: K22 O38
    Date: 2023–06
  2. By: Carlo Gola (Bank of Italy); Valentina Cappa (Bank of Italy); Patrizio Fiorenza (Bank of Italy); Paolo Granata (Bank of Italy); Federica Laurino (Bank of Italy); Lorenzo Lesina (Bank of Italy); Francesco Lorizzo (Bank of Italy); Gabriele Marcelli (Bank of Italy)
    Abstract: This paper deals with the governance of systems based on distributed ledger technology (DLT). This technology enables the creation of a shared electronic archive accessible via the internet, in which information is stored in a secure and irreversible manner. The updating and management of the ledger takes place without resorting to a trusted third party. The absence of traditional organizational and governance structures makes DLT management complex. The work provides the tools to understand DLT technology and analyzes its governance, both for open (permissionless) systems and for those with limited access (permissioned). Different approaches are suggested for the application of governance rules, including for DLT with entirely algorithmic governance. The study shows that the creation of tools known as governance tokens, which incorporate administrative and property rights, facilitates the management and control processes of DLTs. Finally, the governance structure of two DLTs is described: Ethereum and Polkadot.
    Keywords: blockchain, DLT, corporate governance, algorithmic governance, governance token, crypto-asset, decentralised finance, banking and financial supervision
    JEL: G3 M4 D82 G14 G21 G28 M4 M15 O33
    Date: 2023–06
  3. By: Carin van der Cruijsen; Jelmer Reijerink
    Abstract: The ongoing digital transition in the payment landscape offers countless advantages to many people. However, certain segments of the population encounter difficulties navigating this digital world, particularly individuals within groups at risk. Little is known about the payment behaviour and preferences of these groups. Our research focuses on people with low digital literacy, disabilities or financial difficulties. Using rich payment diary data of Dutch consumers, our study reveals that cash is an important means of payment to many. 7% of the respondents in our study say they always use cash at points of sale and 28% indicate they cannot do without cash. Furthermore, we find that cash is especially important for people with low digital literacy, people who are blind or visually impaired, people with limited or no hand function, people with a mild intellectual disability and people who find it difficult to make ends meet on their income.
    Keywords: payment behaviour; groups at risk; payment diaries; consumer survey; cash; cards
    JEL: D12 D14 E42 E58
    Date: 2023–06
  4. By: Fietz, Katharina; Lay, Jann
    Abstract: Digitalisation has a major impact on labour markets in developing countries. While Internet access expands, digital platforms proliferate and "gig-work" is performed in the Global South, access to and use of digital technologies remains far from universal. As the scope and speed of digitalisation vary across countries and "context matters". The present study reviews the evidence on the effects that selected key aspects of digitalisation on labour markets in developing economies with a focus on digital platforms. Although several studies find considerable effects regarding the employment impacts of digital infrastructures, the evidence on the impacts of digital platforms remains relatively patchy. For example, while transaction data from global online labour platforms demonstrate the important role of the Global South as a supplier on online platforms, we know very little about the extent of work on location-based online platforms. We discuss digital skills to harness digitalisation gains and identify several evidence gaps.
    Keywords: Digitalisation, labour markets, employment, digital platforms, digital skills
    JEL: O14 O33 E24 J21
    Date: 2023
  5. By: Mishra, Bineet (Cornell University); Prasad, Eswar (Cornell University)
    Abstract: We develop a general equilibrium model that highlights the trade-offs between physical and digital forms of retail central bank money. The key differences between cash and central bank digital currency (CBDC) include transaction efficiency, possibilities for tax evasion, and, potentially, nominal rates of return. We establish conditions under which cash and CBDC can co-exist and show how government policies can in uence relative holdings of cash, CBDC, and other assets. We illustrate how a CBDC can facilitate negative nominal interest rates and helicopter drops, and also how a CBDC can be structured to prevent capital flight from other assets.
    Keywords: central bank digital currency, cash, medium of exchange, store of value, transaction efficiency
    JEL: E4 E5 E61
    Date: 2023–05
  6. By: Hun Myoung Park (IUJ Research Institute, International University of Japan)
    Abstract: The Korean government has employed a certificate-based user authentication scheme powered by Microsoft Internet Explorer and ActiveX plug-ins for the past two decades. Users must obtain accredited digital certificates, install all required plug-ins on their machines, and undergo all user authentication procedures. Public websites lack cross-platform and cross-browser compatibility and discriminate against those who do not use Windows and Internet Explorer. Most stakeholders mistakenly take a series of authentication procedures for granted and endure an inconvenient, burdensome, vulnerable, and fallible user authentication scheme. Given limited awareness of web accessibility and cybersecurity, they unwittingly make electronic copies of security code cards, store accredited digital certificates on a hard disk or flash drive, and mechanically click gYes h or gOK h whenever a dialog box pops up. This monolithic end-user computing environment, despite its crucial pitfalls, contributed to the early diffusion of online public information and services; indeed, it was a double-edged sword. Although most ActiveX or non-ActiveX plug-ins were removed from public websites by 2021, the troublesome certificate-based authentication scheme remained almost unchanged for a long time (1999-2020). This case study illustrates the influences of the weird user authentication scheme on web accessibility and end-user computing and the importance of international technology standards.
    Keywords: E-government, User Authentication, Digital Certificate, Cross-Platform and Cross-Browser Compatibility, Device Independence, Web Accessibility
    Date: 2023–06
  7. By: Carlo Gola (Bank of Italy); Patrizio Fiorenza (Bank of Italy); Federica Laurino (Bank of Italy); Lorenzo Lesina (Bank of Italy)
    Abstract: The work provides a method to classify blockchains and computing systems based on distributed ledger technology (DLT) and facilitate their comparison. In fact, DLTs are difficult to compare since they adopt different technological configurations, distinguished by the activities they perform and their technical characteristics and governance structures. Furthermore, some DLTs combine traditional decision-making processes with automated organizational procedures, while others adopt entirely algorithmic governance. The paper describes the main characteristics of DLTs: the degree of decentralization, the type of consensus protocol, the updating system, the governance structure, and the possibility of splitting the register (forking). The work uses the theory of switching circuits to visually represent and compare different DLTs based on their characteristics. This methodology is applied to Ethereum and Polkadot, two particularly complex DLTs.
    Keywords: blockchain, DLT, cripto-asset, decentralised finance, banking and financial supervision
    JEL: G3 M4 D82 G14 G21 G28 M4 M15 O33
    Date: 2023–06
  8. By: Lubdhak Mondal; Udeshya Raj; Abinandhan S; Began Gowsik S; Sarwesh P; Abhijeet Chandra
    Abstract: This study investigates the relationship between narratives conveyed through microblogging platforms, namely Twitter, and the value of crypto assets. Our study provides a unique technique to build narratives about cryptocurrency by combining topic modelling of short texts with sentiment analysis. First, we used an unsupervised machine learning algorithm to discover the latent topics within the massive and noisy textual data from Twitter, and then we revealed 4-5 cryptocurrency-related narratives, including financial investment, technological advancement related to crypto, financial and political regulations, crypto assets, and media coverage. In a number of situations, we noticed a strong link between our narratives and crypto prices. Our work connects the most recent innovation in economics, Narrative Economics, to a new area of study that combines topic modelling and sentiment analysis to relate consumer behaviour to narratives.
    Date: 2023–06
  9. By: Bellia, Mario (European Commission); Calès, Ludovic
    Abstract: This paper analyzes the potential effect of a European Central Bank Digital Currency (CBDC) on banks’ profitability. We use a large sample of EU banks that span the period from 2007 to 2021 to assess the sensitivity of banks’ profits to the deposits. Using quantile regression, we estimate the conditional profit distribution of a representative bank. We then introduce a shock on the amount of deposits that would be replaced by the CBDC. Our results show that, for a large take-up of CBDC, there might be substantial challenges for the profitability of banks, especially for small banks, that mostly rely on deposits as a source of funding.
    Keywords: Central Bank Digital Currency, CBDC, ECB, bank deposits
    JEL: G18 G28 G32
    Date: 2023–05
  10. By: Saka, Orkun; Eichengreen, Barry; Aksoy, Cevat
    Abstract: We ask whether epidemic exposure leads to a shift in financial technology usage and who participates in this shift. We exploit a dataset combining Gallup World Polls and Global Findex surveys for some 250, 000 individuals in 140 countries, merging them with information on the incidence of epidemics and local 3G internet infrastructure. Epidemic exposure is associated with an increase in remote-access (online/mobile) banking and substitution from bank branch-based to ATM activity. The temporary nature of the effects we identify is more consistent with a demand channel rather than that of supply with high initial fixed costs. Exploring heterogeneity using a machine-learning driven approach, we find that young, high-income earners in full-time employment have the greatest tendency to shift to online/mobile transactions in response to epidemics. Baseline effects are larger for individuals with better ex ante 3G signal coverage, highlighting the role of the digital divide in adaption to new technologies necessitated by adverse external shocks.
    Keywords: epidemics; fintech; banking
    JEL: G20 G00 I10
    Date: 2022–04–01
  11. By: Bingyou Chen; Yu Luo; Jieni Li; Yujian Li; Ying Liu; Fan Yang; Yanan Qiao
    Abstract: This thesis provides an in-depth exploration of the Decentralized Co-governance Crowdfunding (DCC) Ecosystem, a novel solution addressing prevailing challenges in conventional crowdfunding methods faced by MSMEs and innovative projects. Among the problems it seeks to mitigate are high transaction costs, lack of transparency, fraud, and inefficient resource allocation. Leveraging a comprehensive review of the existing literature on crowdfunding economic activities and blockchain's impact on organizational governance, we propose a transformative socio-economic model based on digital tokens and decentralized co-governance. This ecosystem is marked by a tripartite community structure - the Labor, Capital, and Governance communities - each contributing uniquely to the ecosystem's operation. Our research unfolds the evolution of the DCC ecosystem through distinct phases, offering a novel understanding of socioeconomic dynamics in a decentralized digital world. It also delves into the intricate governance mechanism of the ecosystem, ensuring integrity, fairness, and a balanced distribution of value and wealth.
    Date: 2023–06
  12. By: Elohim Fonseca dos Reis; Alexander Teytelboym; Abeer ElBahraw; Ignacio De Loizaga; Andrea Baronchelli
    Abstract: Dark web marketplaces have been a significant outlet for illicit trade, serving millions of users worldwide for over a decade. However, not all users are the same. This paper aims to identify the key players in Bitcoin transaction networks linked to dark markets and assess their role by analysing a dataset of 40 million Bitcoin transactions involving 31 markets in the period 2011-2021. First, we propose an algorithm that categorizes users either as buyers or sellers and shows that a large fraction of the traded volume is concentrated in a small group of elite market participants. Then, we investigate both market star-graphs and user-to-user networks and highlight the importance of a new class of users, namely `multihomers' who operate on multiple marketplaces concurrently. Specifically, we show how the networks of multihomers and seller-to-seller interactions can shed light on the resilience of the dark market ecosystem against external shocks. Our findings suggest that understanding the behavior of key players in dark web marketplaces is critical to effectively disrupting illegal activities.
    Date: 2023–06
  13. By: Evan Winter; Anupam Shah; Ujjwal Gupta; Anshul Kumar; Deepayan Mohanty; Juan Carlos Uribe; Aishwary Gupta; Mini P. Thomas
    Abstract: The objective of this paper is to investigate a more efficient cross-border payment and document handling process for the export of Indian goods to Brazil. The paper is structured into two sections: first, to explain the problems unique to the India-Brazil international trade corridor by highlighting the obstacles of compliance, speed, and payments; and second, to propose a digital solution for India-brazil trade utilizing Supernets, focusing on the use case of Indian exports. The solution assumes that stakeholders will be onboarded as permissioned actors (i.e. nodes) on a Polygon Supernet. By engaging trade and banking stakeholders, we ensure that the digital solution results in export benefits for Indian exporters, and a lawful channel to receive hard currency payments. The involvement of Brazilian and Indian banks ensures that Letter of Credit (LC) processing time and document handling occur at the speed of blockchain technology. The ultimate goal is to achieve faster settlement and negotiation period while maintaining a regulatory-compliant outcome, so that the end result is faster and easier, yet otherwise identical to the real-world process in terms of export benefits and compliance.
    Date: 2023–06
  14. By: Peter Christensen; Adam Osman
    Abstract: Optimal transportation policies depend on demand elasticities that interact across modes and vary across the population, but understanding how and why these elasticities vary has been an empirical challenge. Using an experiment with Uber in Egypt, we randomly assign large price discounts for transport services over a 3 month period to examine: (1) the demand for ride-hailing services, (2) the demand for total mobility (km/week), and (3) its contributions to external costs (e.g. congestion). A 50% discount more than quadruples Uber usage and induces an increase of nearly 49% in total mobility. These effects are stronger for women, who are less mobile at baseline and perceive public transit as unsafe. Technology-induced reductions in the price of ride-hailing services could generate substantial benefits to users (4.3% of GDP) that would be accompanied by considerable increases in external costs (1% of GDP), with benefits accruing to the most affluent and costs being borne by the entire population.
    JEL: Q5 R4
    Date: 2023–06
  15. By: Shimon Kogan; Igor Makarov; Marina Niessner; Antoinette Schoar
    Abstract: Trading in cryptocurrencies has grown rapidly over the last decade, primarily dominated by retail investors. Using a dataset of 200, 000 retail traders from eToro, we show that they have a different model of the underlying price dynamics in cryptocurrencies relative to other assets. Retail traders in our sample are contrarian in stocks and gold, yet the same traders follow a momentum-like strategy in cryptocurrencies. Individual characteristics do not explain the differences in how people trade cryptocurrencies versus stocks, suggesting that our results are orthogonal to differences in investor composition or clientele effects. Furthermore, our findings are not explained by inattention, differences in fees, or preference for lotterylike stocks. We conjecture that retail investors hold a model of cryptocurrency prices, where price changes imply a change in the likelihood of future widespread adoption, which in turn pushes asset prices further in the same direction.
    JEL: G12 G14 G41
    Date: 2023–06
  16. By: Mr. Tigran Poghosyan
    Abstract: This paper analyses how financial inclusion in the Caucasus and Central Asia (CCA) compares to peers in Central and Eastern Europe (CEE). Using individual-level survey data, it shows that the probability of being financially included, as proxied by account ownership in financial institutions, is substantially lower across gender, income groups, and education levels in all CCA countries relative to CEE comparators. Key determinants of this financial inclusion gap are lower financial and human development indices, weak rule of law, and physical access to bank branches or ATMs. This suggests that targeted policies aimed at boosting financial and human development, strengthening the rule of law, and supporting fintech solutions can broaden financial inclusion in the CCA.
    Keywords: Caucasus and Central Asia; financial inclusion; financial access; estimation result; CEE comparator; CCA country; IMF working paper 23/109; CEE peer; Financial sector development; Financial account; Financial sector; Income; Global; Central Asia and the Caucasus
    Date: 2023–05–26
  17. By: OECD
    Abstract: Protecting consumers when they are most vulnerable has long been a core focus of consumer policy. This report first discusses the nature and scale of consumer vulnerability in the digital age, including its evolving conceptualisation, the role of emerging digital trends, and implications for consumer policy. It finds that in the digital age, vulnerability may be experienced not only by some consumers, but increasingly by most, if not all, consumers. Accordingly, it sets out several measures to address the vulnerability of specific consumer groups and all consumers, and concludes with avenues for more research on the topic.
    Date: 2023–06–26
  18. By: Hossain, Marzuk; Mahmud, Tahmid Bin; Rahman, Khandker Wahedur; Sulaiman, Munshi
    Keywords: Teaching/Communication/Extension/Profession, International Development, Research Methods/Statistical Methods
    Date: 2023
  19. By: Oyadeyi, Olajide
    Abstract: Many articles had been published online regarding the proposed naira redesign and its possible consequences on the Nigerian economy ex-ante. This article however focuses on the naira redesign and its implications on the Nigerian economy ex-post, particularly in Q1 2023, when the policy took effect. To achieve this, the article highlights some facts about Nigeria’s economy, as well as the implications of the policy on economic activities, using trend analysis on a host of economic variables, with reference to the real GDP, PMI, and inflation. The trend analysis results showed that indeed, the cash-crunch policy affected economic growth and productive activities as real GDP and the PMI shrank. On the other hand, the article dismisses the notion that the inability to account for the high currency outside banks to currency in circulation ratio was the main cause of rising consumer inflation in Nigeria. Rather, the article revealed that the growth in money supply was induced by quasi-money activities which may have led to the rise in consumer prices.
    Keywords: Cash Crunch, Naira Redesign, Demand for Money, Nigeria, Q1 2023, Currency in Circulation, Currency Outside Banks, Velocity of Money
    JEL: E40 E41 E42 E5 E6
    Date: 2023–05–28
  20. By: Cao, Xiang; Yu, Chuanjiang; Yu, Jiayang; Jia, Nan
    Keywords: Community/Rural/Urban Development, Labor and Human Capital, Agribusiness
    Date: 2023
  21. By: Ho Fai Chan (Queensland University of Technology); Ali Sina Önder (University of Portsmouth); Sascha Schweitzer (Reutlingen University); Benno Torgler (Queensland University of Technology)
    Abstract: Social media, especially Twitter, plays an increasingly important role among researchers in showcasing and promoting their research. Does Twitter affect academic citations? Making use of Twitter activity about columns published on VoxEU, a renowned online platform for economists, we develop an instrumental variable strategy to show that Twitter activity about a research paper has a causal effect on the number of citations that this paper will receive. We find that the existence of at least one tweet, as opposed to none, leads to 16-25% more citations. Doubling the overall Twitter engagement generates up to 16% more citations.
    Keywords: Productivity; Social Media; Twitter; Citations; Economists
    JEL: J24
    Date: 2023–06–19
  22. By: Maite Blázquez (Universidad Autonoma de Madrid.); Ainhoa Herrarte (Universidad Autonoma de Madrid.); Ana I. Moro Egido (Department of Economic Theory and Economic History, University of Granada.)
    Abstract: The increase in atypical jobs (self-employment and temporary jobs) driven by the digital platform economy (gig economy) has put this type of work in the spotlight of the social and political debate. Among the countries of the European Union, Spain stands out for having the highest volume of digital platform work. This study uses microdata from the Spanish Living Conditions Survey for the year 2018 and Google trends data on Deliveroo, Airbnb, Just Eat, Uber, and Freelance as a proxy of digital platform economy demand to analyse the well-being effects of being employed in any of the types of employment arrangements associated with the gig economy. Using an econometric approached based on instrumental variables, we find evidence that the most deleterious well-being effects are found among self-employed workers and for the dimension of well-being based on self-reported health. The self-employed (ownaccount workers) display a 125.8% decrease in average self-reported health levels compared to permanent workers. Our results suggest that the greater job insecurity and precariousness associated with self-employment outweighs the potential positive impact caused by the greater flexibility and autonomy of this type of work.
    Keywords: Digital platform economy, Gig economy, Digital platform work, Self-employment, Temporary jobs, Well-being, Self-reported health, Happiness, Life satisfaction.
    JEL: I31 J21 J81 J40
    Date: 2023–06–15
  23. By: Nicolas Kusz (UP1 EMS - Université Paris 1 Panthéon-Sorbonne - École de Management de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne, PRISM Sorbonne - Pôle de recherche interdisciplinaire en sciences du management - UP1 - Université Paris 1 Panthéon-Sorbonne); Jean-François Lemoine (ESSCA Research Lab - ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers , PRISM Sorbonne - Pôle de recherche interdisciplinaire en sciences du management - UP1 - Université Paris 1 Panthéon-Sorbonne, UP1 EMS - Université Paris 1 Panthéon-Sorbonne - École de Management de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne)
    Abstract: Voice-activated virtual assistants (Google, Alexa, etc.) are becoming more and more a part of people's daily lives. Although their usefulness and functionalities are increasing, the voice interface between man and machine has not been sufficiently taken into account by companies that have developed their voice application (i.e. Alexa Skills or Google Actions) yet: the synthetic voice applied to the technology. Our research aims to measure the impact of the assistant's voice on consumers reactions. Based on 15 interviews of users, the results reveal that the type of voice of the assistant influences trust in the assistant and social presence. However, in contrast to studies conducted on virtual agents and chatbots, our research indicates that realism influences trust; a synthetic voice that sounds exactly like a human degrades the perception of the voice assistant.
    Keywords: voice assistant, trust, social presence, HMI
    Date: 2023–05–23
  24. By: Tetsuya Shinkai (School of Economics, Kwansei Gakuin University); Naoshi Doi (Otaru University of Commerce- Economics)
    Abstract: This article examines menu-pricing and quality decisions of a platform monopolist for two types of sellers and buyers on a two-sided market. Under the GPD (general Pareto distribution) valuation of buyers for transaction services, we show that unique optimal services fees exist for sellers and buyers. The two types of services (premium and spot) are offered to both sellers and buyers. An optimal premium membership fee and the quality service level are considered for the premium type of buyers in a platform optimization problem. Assuming that the unit cost of the product is fixed, we show that the optimal membership fee/the level of quality service for premium-type buyers decreases/increases as the service cost for premium-type sellers increases. However, if delivery fees charged by transport companies for spot-type sellers increase, the optimal membership fee/level of quality service increases/decreases. However, if the demand for services of the platform for both types of buyers increases, both the optimal membership fee and quality level of services increase.
    Keywords: Platform monopoly; Menu-pricing; Quality decisions; Two-sided market.
    JEL: D21 D43 L13 L15
    Date: 2023–06
  25. By: Cristian Frasser; Lucie Lebeau
    Abstract: In coca-growing villages of Colombia, where pesos are scarce, coca-base is not only used as the main input for cocaine production—it also acts as a complementary currency (CC), circulating locally as a medium of exchange for day-to-day transactions. This paper provides a clear rationale for the economically-motivated adoption of a CC in a small open economy underprovided with official currency. An equilibrium currency shortage arises endogenously in our model, whereby shocks to the local supply of currency have a real impact on local trade and welfare. We show how a CC can mitigate the underprovision of liquidity and derive general insights relating the CC’s characteristics to its ability to supplement the official currency. In an application, we quantify the unintended consequences of various anti-narcotic policies pursued by the Colombian government on liquidity provision in coca-growing villages and identify the least-harmful policy tools given the policy objectives at stake.
    Keywords: complementary currency (CC); Local currency; money supply; commodity money; money shortage; liquidity; anti-narcotic policies
    JEL: E40 E41 E51 O23
    Date: 2023–06–21
  26. By: Matteo Benetton; Giovanni Compiani; Adair Morse
    Abstract: Cryptomining, the clearing of cryptocurrency transactions, uses large quantities of electricity. We document that cryptominers' use of local electricity implies higher electricity prices for existing small businesses and households. Studying the electricity market in Upstate NY and using the Bitcoin price as an exogenous shifter of the part of the supply curve faced by the community, we estimate the electricity demand functions for small businesses and households. Based on our estimates, we calculate counterfactual electricity bills, finding that small businesses and households paid an extra $92 million and $204 million annually in Upstate NY because of increased electricity consumption from cryptominers. Local governments in Upstate NY realize more business taxes, but this only offsets a small portion of the costs from higher community electricity bills. Using data on China, where electricity prices are fixed, we find that rationing of electricity in cities with cryptomining entrants deteriorates wages and investments, consistent with crowding-out effects on the local economy. Our results point to a yet-unstudied negative spillover from technology processing to local communities, which would need to be considered against welfare benefits.
    JEL: G10 G23 G5 Q4 Q52 R1 R23
    Date: 2023–06
  27. By: Emilie Peneloux (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon); Philippe Lépinard (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Cécile Godé (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon)
    Abstract: The law n°2022-309 for the implementation of a cybersecurity certification of digital platforms, which came into force on October 1st, 2022, is intended for the general public so that users can become aware of cyber risks when they use digital services. Our research project, wishes to extend this approach in a professional context in order to know if such a system can also influence the perception of cyber risks at the level of the top management of an organization. Our objective is therefore to build a management tool (cyberscore) using a Design Science Research (DSR) approach. This article presents the preliminary work of our research and the areas of research that we would like to develop and discuss at the AIM annual conference.
    Abstract: Entrée en vigueur le 1 er octobre 2022, la loi n°2022-309 pour la mise en place d'une certification de cybersécurité des plateformes numériques est destinée au grand public afin que les usagers puissent prendre conscience des risques cyber lorsqu'ils recourent à des prestations numériques. Notre projet de recherche souhaite prolonger cette démarche dans un contexte professionnel afin de déterminer si un tel dispositif peut également influencer la perception des risques cyber au niveau de la Direction d'une organisation. Notre objectif est donc la construction d'un instrument de gestion (cyberscore) selon une approche de type Design Science Research (DSR). Cet article présente les travaux préliminaires de notre recherche et les axes d'approfondissements que nous souhaitons développer et discuter dans le cadre de la conférence annuelle de l'AIM.
    Keywords: Cyber risk, Risk perception, Cybersecurity, Cyberscore, Risque Cyber, Perception du risque, Cybersécurité
    Date: 2023–05–29
  28. By: Giorgio Abate (Bank of Italy); Nicola Branzoli (Bank of Italy); Raffaele Gallo (Bank of Italy)
    Abstract: This paper provides a conceptual framework to analyse risks and vulnerabilities in crypto-asset markets and describes the episodes of stress observed in these markets in 2022. The analysis is used to provide preliminary policy considerations that are relevant for financial stability. We highlight the importance of setting a clear perimeter for financial regulation and of developing global rules to address financial stability risks in the areas covered by financial regulation following the principle "same risk, same regulatory outcome". Authorities could discourage and monitor exposures of supervised or overseen operators to areas not directly covered by financial regulation while trying to incentive the adoption of safe and sound risk management practices by entities involved or operating in these areas. Finally, we provide concrete proposals to implement these considerations.
    Keywords: cryptoassets, financial stability, stablecoin, decentralized finance, leverage, investor run
    JEL: G0 G1 G18
    Date: 2023–06
  29. By: Lucia Del Carpio; Thomas Fujiwara
    Abstract: Gendered-grammar languages like Spanish are spoken by 39% of the world’s population. In a field experiment in partnership with a Spanish-speaking online platform for technology positions, ads randomly selected to use gender-neutral language receive a larger share of female applicants for non-remote positions in fields where female participation is not too low, and similar numbers otherwise. In a separate survey experiment, gender-neutral language in ads increases interest and beliefs about the suitability for the position and the advertiser’s culture of inclusion, with effects that are similar in magnitude to stating the job is remote and larger than explicit diversity statements.
    JEL: J16 J7 M14 Z13
    Date: 2023–06
  30. By: Tanu Goyal (Indian Council for Research on International Economic Relations (ICRIER)); Peter Morgan (Asian Development Bank Institute (ADBI))
    Abstract: The COVID-19 situation has accelerated the adoption of e-commerce across the world. While, globally, there has been an increase in the share of e-commerce in total retail sales, there are variations in e-commerce adoption across countries and the difference is obtrusive when one compares developed countries and emerging market economies. This paper undertakes a comparative assessment of e-commerce adoption by the G20 countries and, in doing so, it benchmarks the G20 members across different indicators that determine e-commerce adoption. Based on secondary data, the paper presents some stylized facts, discusses the regulatory scenario with respect to e-commerce in G20 countries and identifies key constraints to e-commerce adoption in the comparatively poor performers.
    Keywords: MSME, G20, digital, e-commerce
    Date: 2023–03
  31. By: Elhan-Kayalar, Yesim (Asian Development Bank Institute); Sawada, Yasuyuki (Asian Development Bank Institute); van der Meulen Rodgers, Yana (Asian Development Bank Institute)
    Abstract: We examine business performance and crisis mitigation strategies among micro-, small-, and medium-sized enterprises (MSMEs) in Indonesia during the COVID-19 pandemic. We utilize a new primary data set based on administrative records, survey data, and follow-up interviews with merchants using the digital application GoFood, an on-demand cooked food delivery service. Three empirical findings emerge: First, the overall employment size of women-owned businesses shrank more than men-owned businesses after the pandemic outbreak; second, women were more likely than men to cut personal expenditures and use government assistance as crisis mitigation strategies; and third, competition increased sharply as new merchants entered the platform, with service areas of both incumbents and entrants shrinking over time. These results have implications for policies on women’s entrepreneurship, the uptake of business development services, and financing programs for MSMEs.
    Keywords: women; e-commerce; COVID-19; digitalization; MSMEs
    JEL: J16 J21 L11 O12
    Date: 2022–12

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.