nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒09‒04
twenty-six papers chosen by

  1. The Rise and Fall of Cryptocurrencies: Defining the Economic and Social Values of Blockchain Technologies, assessing the Opportunities, and defining the Financial and Cybersecurity Risks of the Metaverse. By Petar, Radanliev
  2. Shifting Cryptocurrency Influence: A High-Resolution Network Analysis of Market Leaders By Arnav Hiray; Agam Shah; Sudheer Chava
  3. The Social Meaning of Mobile Money: Willingness to Pay with Mobile Money in Bangladesh By Jean N. Lee; Jonathan Morduch; Saravana Ravindran; Abu S. Shonchoy
  4. Bitcoin Gold, Litecoin Silver:An Introduction to Cryptocurrency's Valuation and Trading Strategy By Haoyang Yu; Yutong Sun; Yulin Liu; Luyao Zhang
  5. Mobile money innovations, income inequality and gender inclusion in sub-Saharan Africa By Simplice A. Asongu; Peter Agyemang-Mintah; Joseph Nnanna; Yolande E. Ngoungou
  6. Trust bridges and money flows By Tobias Adrian; Rodney Garratt; Dong He; Tommaso Mancini-Griffoli
  7. Denial of Interoperability and Future First-Party Entry By Massimo Motta; Martin Peitz
  8. The Effect of COVID-19 Transmission on Cryptocurrencies By Nesrine Dardouri; Abdelkader Aguir; Mounir Smida
  9. ‘Neither work nor leisure’: motivations of microworkers in the United Kingdom on three digital platforms By Muldoon, James; Apostolidis, Paul
  10. How social media use enhances salesperson performance By Romain Franck; Maud Damperat
  11. Factor models of cryptocurrency return within homogeneous groups By Kuznetsova, Mariya (Кузнецова, Мария); Sinelnikova-Muryleva, Elena (Синельникова-Мурылева, Елена); Shilov, Kirill (Шилов, Кирилл)
  12. The use of social media as a form of strategic communication by political parties in Morocco: A theoretical study By Nouha Anka Idrissi; Rachid Smouni
  13. Visual design and online shopping experiences: When expertise allows consumers to refocus on website attractiveness By Florence Jeannot; Eline Jongmans; Maud Dampérat
  14. Local banking markets and barriers to entrepreneurship in minority and other areas: Does broadband availability help? By Prieger, James
  15. Cybercrime on the Ethereum Blockchain By Lars Hornuf; Paul P. Momtaz; Rachel J. Nam; Ye Yuan
  16. Trend patterns statistics for assessing irreversibility in cryptocurrencies: time-asymmetry versus inefficiency By Jessica Morales Herrera; Ra\'ul Salgado-Garc\'ia
  17. Digitalisation in European regions: Unravelling the impact of relatedness and complexity on digital technology adoption and productivity growth By Stefan Apostol; Eduardo Hernández-Rodríguez
  18. Impact of Blockchain on Stock Market By Chowdhury, Emon Kalyan
  19. Generative Artificial Intelligence (GAI): Foundations, use cases and economic potential By Brühl, Volker
  20. The Effects of Social Media Marketing on Customer’s Purchase Intention; a Moderated Mediation Model from Apparel Industry of Pakistan By Ethan, Amelia
  21. Digitization and Availability of Artworks in Online Museum Collections By Alexander Cuntz; Paul J. Heald; Matthias Sahli
  22. (Shadow) money without a central bank: towards a theory of monetary time By Gabor, Daniela
  23. Toward a luxury restaurant renewal: Antecedents and consequences of digitalized gastronomy experiences By Florence Jeannot; Maud Dampérat; Marielle Salvador; Mariem El Euch Maalej; Eline Jongmans
  24. "Generate" the Future of Work through AI: Empirical Evidence from Online Labor Markets By Jin Liu; Xingchen Xu; Yongjun Li; Yong Tan
  25. Forecasting banknote circulation during the COVID-19 pandemic using structural time series models By Bartzsch, Nikolaus; Brandi, Marco; de Pastor, Raymond; Devigne, Lucas; Maddaloni, Gianluca; Posada Restrepo, Diana; Sene, Gabriele
  26. Analyzing the Reporting Error of Public Transport Trips in the Danish National Travel Survey Using Smart Card Data By Georges Sfeir; Filipe Rodrigues; Maya Abou Zeid; Francisco Camara Pereira

  1. By: Petar, Radanliev
    Abstract: This paper contextualises the common queries of "why is crypto crashing?" and "why is crypto down?", the research transcends beyond the frequent market fluctuations to unravel how cryptocurrencies fundamentally work and the step-by-step process on how to create a cryptocurrency. The study examines blockchain technologies and their pivotal role in the evolving Metaverse, shedding light on topics such as how to invest in cryptocurrency, the mechanics behind crypto mining, and strategies to effectively buy and trade cryptocurrencies. Through an interdisciplinary approach, the research transitions from the fundamental principles of fintech investment strategies to the overarching implications of blockchain within the Metaverse. Alongside exploring machine learning potentials in financial sectors and risk assessment methodologies, the study critically assesses whether developed or developing nations are poised to reap greater benefits from these technologies. Moreover, it probes into both enduring and dubious crypto projects, drawing a distinct line between genuine blockchain applications and Ponzi-like schemes. The conclusion resolutely affirms the continuing dominance of blockchain technologies, underlined by a profound exploration of their intrinsic value and a reflective commentary by the author on the potential risks confronting individual investors.
    Keywords: Blockchain Technologies, Cryptocurrencies, Metaverse, Decentralised Finance (DeFi), Crypto Regulations, Blockchain Standards, Risk, Value.
    JEL: O30 O31 O32 O33 O34 O35 O38 O39
    Date: 2023–08–09
  2. By: Arnav Hiray; Agam Shah; Sudheer Chava
    Abstract: Over the last decade, the cryptocurrency market has experienced unprecedented growth, emerging as a prominent financial market. As this market rapidly evolves, it necessitates re-evaluating which cryptocurrencies command the market and steer the direction of blockchain technology. We implement a network-based cryptocurrency market analysis to investigate this changing landscape. We use novel hourly-resolution data and Kendall's Tau correlation to explore the interconnectedness of the cryptocurrency market. We observed critical differences in the hierarchy of cryptocurrencies determined by our method compared to rankings derived from daily data and Pearson's correlation. This divergence emphasizes the potential information loss stemming from daily data aggregation and highlights the limitations of Pearson's correlation. Our findings show that in the early stages of this growth, Bitcoin held a leading role. However, during the 2021 bull run, the landscape changed drastically. We see that while Ethereum has emerged as the overall leader, it was FTT and its associated exchange, FTX, that greatly led to the increase at the beginning of the bull run. We also find that highly-influential cryptocurrencies are increasingly gaining a commanding influence over the market as time progresses, despite the growing number of cryptocurrencies making up the market.
    Date: 2023–07
  3. By: Jean N. Lee (World Bank); Jonathan Morduch (Robert F. Wagner Graduate School of Public Service, New York University); Saravana Ravindran (Lee Kuan Yew School of Public Policy, National University of Singapore); Abu S. Shonchoy (Department of Economics, Florida International University)
    Abstract: Mobile money has spread globally, introducing new payment technologies and reducing dependence on cash. Using mobile money can affect spending decisions and how people perceive money itself. Behavioral household finance shows that people are often more willing to spend when using less tangible forms of money like debit and credit cards than when spending in cash. We test whether a similar positive “payment effect†holds for mobile money. In contrast, we find a consistently lower willingness to spend in Bangladesh, where mobile money is now widespread. We draw on surveys embedded within an experiment that allows us to control for the relationships between senders and receivers of mobile money. The findings are consistent with mobile money being earmarked or labeled for particular uses. For rural households, who typically receive remittances from relatives working in the city, for example, mobile money often comes with expectations of how the money should be spent. Spending with cash, in contrast, tends to be more fungible. In urban areas, where the sample is largely comprised of remittance-senders, payment effects are substantially smaller.
    Keywords: payment effect, digital finance, willingness to pay, social meaning of money, earmarks
    JEL: O15 G41 G50 D91 D14
    Date: 2023–08
  4. By: Haoyang Yu; Yutong Sun; Yulin Liu; Luyao Zhang
    Abstract: Historically, gold and silver have played distinct roles in traditional monetary systems. While gold has primarily been revered as a superior store of value, prompting individuals to hoard it, silver has commonly been used as a medium of exchange. As the financial world evolves, the emergence of cryptocurrencies has introduced a new paradigm of value and exchange. However, the store-of-value characteristic of these digital assets remains largely uncharted. Charlie Lee, the founder of Litecoin, once likened Bitcoin to gold and Litecoin to silver. To validate this analogy, our study employs several metrics, including unspent transaction outputs (UTXO), spent transaction outputs (STXO), Weighted Average Lifespan (WAL), CoinDaysDestroyed (CDD), and public on-chain transaction data. Furthermore, we've devised trading strategies centered around the Price-to-Utility (PU) ratio, offering a fresh perspective on crypto-asset valuation beyond traditional utilities. Our back-testing results not only display trading indicators for both Bitcoin and Litecoin but also substantiate Lee's metaphor, underscoring Bitcoin's superior store-of-value proposition relative to Litecoin. We anticipate that our findings will drive further exploration into the valuation of crypto assets. For enhanced transparency and to promote future research, we've made our datasets available on Harvard Dataverse and shared our Python code on GitHub as open source.
    Date: 2023–07
  5. By: Simplice A. Asongu (Yaoundé, Cameroon); Peter Agyemang-Mintah (Zayed University, Abu Dhabi, UAE); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria); Yolande E. Ngoungou (Yaoundé, Cameroon)
    Abstract: The study assesses the role of mobile money innovations on income inequality and gender inclusion in 42 Sub-Saharan African countries for the period 1980 to 2019 using interactive quantile regressions. The following findings are established. First, income inequality unconditionally reduces the involvement of women in business and politics. Second, mobile money innovations interact with income inequality to have a positive impact on women in business and politics. Third, net effects from the role of mobile money innovations in income inequality for gender inclusion are consistently negative. Fourth, given that the positive conditional or interactive effects and negative net effects are consistent across the conditional distribution of gender inclusion, thresholds at which mobile money innovations can completely dampen the negative effect of income inequality on gender inclusion are provided. Among others, policy makers should work towards improving conditions for mobile money innovations. They should also be aware that reducing both income inequality and enhancing mobile money innovations simultaneously leads to more inclusive outcomes in terms of gender inclusion.
    Keywords: Financial inclusion; inequality; mobile phones; sub-Saharan Africa; women
    JEL: G20 O40 I10 I20 I32
    Date: 2023–01
  6. By: Tobias Adrian; Rodney Garratt; Dong He; Tommaso Mancini-Griffoli
    Abstract: Cross-border payments are expensive, slow, and opaque. These problems reflect multiple frictions, many of which boil down to limited trust among counterparties. Trust plays a central role in exchanging credit-based money. End users need to trust the issuers of money, and issuers must trust users to satisfy financial integrity requirements. Transactions are possible only where trust links exist. Interoperability between different forms of money can thus be conceptualised as the network of trusted links necessary for transactions. Traditionally, across borders, trust links involve exclusive bilateral credit relationships among correspondent banks. However, the fixed costs required to build these links foster an expensive and concentrated system. This paper interprets different payment arrangements in terms of the implied trust structures. It discusses how the tokenisation of money alters trust links and allows for a potentially more efficient market structure to exchange money. The paper ends with a suggested global marketplace to trade tokenised money directly across borders.
    Keywords: cross-border payments
    JEL: E42 E51 E58 F31 G28 O32
    Date: 2023–07
  7. By: Massimo Motta; Martin Peitz
    Abstract: Motivated by a recent antitrust case involving Google, we develop a rationale for foreclosure when the owner of an essential input is not yet integrated downstream. Our theory rests on data-enabled network effects across periods. If a platform considers offering a first-party app in the future, by not allowing a third-party app to be hosted on its platform, it ensures that the third-party app would be a weaker competitor to its own app in the future. This makes denial of access attractive as a full or partial foreclosure strategy, which is costly in the short term but may be beneficial in the long term. We also study the effects of policies such as compulsory access or data-sharing, showing under which conditions they might be beneficial to consumers or backfire.
    Keywords: Exclusionary practices, vertical interoperability, refusal to deal, digital platforms, vertical foreclosure, data-enabled networks effects, compulsory access, data-sharing policies
    JEL: L10 L40 K21
    Date: 2023–08
  8. By: Nesrine Dardouri; Abdelkader Aguir (ESPI - Ecole Supérieure des Professions Immobilières); Mounir Smida (Université de Sousse)
    Abstract: In recent years, Bitcoin and other cryptocurrencies like Ethereum and Dogecoin have emerged as important asset classes in general, and diversification and hedging instruments in particular. The recent COVID-19 pandemic has provided the chance to examine and assess cryptocurrencies' behavior during extremely stressful times. The methodology of this study is based on an estimate using the ARDL model from 22 January 2020 to 12 March 2021, allowing us to analyze the long-term and short-term relationship between cryptocurrencies and COVID-19. Our results demonstrate that there is cointegration between the chosen cryptocurrencies in the market and COVID-19. The results indicate that Bitcoin, ETH, and DOGE prices were affected by COVID-19, which means that the pandemic seriously affected the three cryptocurrency prices.
    Keywords: COVID-19, coronavirus, cryptocurrency, price volatility, liquidity
    Date: 2023–07–27
  9. By: Muldoon, James; Apostolidis, Paul
    Abstract: This article examines the experience of microworkers living in the United Kingdom. Based on a survey of 1189 microworkers and 17 in-depth interviews, the article explores the experiences of UK-based microworkers on three digital platforms: Prolific, Clickworker and Amazon Mechanical Turk. The article draws on the theoretical framework of self-determination theory to analyse workers’ motivations for performing microwork. It reveals that workers’ relatively high satisfaction with otherwise low-paying and low-status work was possible because workers conceptualised their activity as occupying an ambiguous space and time in their lives, blurring traditional distinctions between work and leisure. These findings contribute to our understanding of how microworkers experience their relationship to work in the United Kingdom.
    Keywords: digital labour; employment relationship; gig economy; microworkers; motivations; platform labour; United Kingdom
    JEL: R14 J01
    Date: 2023–07–12
  10. By: Romain Franck (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne); Maud Damperat (COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, UL2 - Université Lumière - Lyon 2)
    Abstract: Purpose Based on a relationship marketing approach, this paper aims to study the influence of social media use on salesperson performance and its underlying mechanisms from the perspective of salespeople in B2B settings. Design/methodology/approach To test the proposed model, the authors used structural equation modeling with a sample of 196 French B2B salespeople. Moreover, to explore the moderating effect of emotional management between social media use and relationship quality, the authors used the Hayes macro PROCESS for SPSS and the Johnson–Newman's floodlight method. Findings The authors confirm the direct role of social media use on salesperson performance, and its indirect role through the parallel mediation of social proximity and relationship quality. The empirical study provides evidence for the moderating effect of emotional management on the relationship between social media use and relationship quality. Practical implications Companies should promote the use of social media to increase both the sales and creative performance of salespeople. Moreover, salespeople with low to moderate abilities to manage other people's emotions benefit strongly from the use of social media, as this directly increases their relationship with their customers. Originality/value The research complements the conceptualization of salesperson performance as a combination of sales performance and sales creativity and shows that emotional management is an asset for social media users to develop valuable business relationships.
    Keywords: B2B sales Relationship marketing Relationship quality Salesperson performance Social media use Social proximity, B2B sales, Relationship marketing, Relationship quality, Salesperson performance, Social media use, Social proximity
    Date: 2023–02–08
  11. By: Kuznetsova, Mariya (Кузнецова, Мария) (The Russian Presidential Academy of National Economy and Public Administration); Sinelnikova-Muryleva, Elena (Синельникова-Мурылева, Елена) (The Russian Presidential Academy of National Economy and Public Administration); Shilov, Kirill (Шилов, Кирилл) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: There is still no common understanding of whether cryptocurrencies should be classified as financial assets or as currencies. The ambiguity and versatility of the definition of the nature and functions of cryptocurrencies give rise to a variety of views on the methods of modeling their returns. Therefore, the issue of essence of cryptocurrencies is topical. The main subject of the study is the return of cryptocurrencies. The main aim of this work is to identify the determinants of return of homogeneous groups of cryptocurrencies. To achieve this goal, such tasks as the formation of various groups of cryptocurrencies, modeling of factors that take into account the peculiarities of the cryptocurrency market, and the evaluation of multifactor models of the Fama-French type for the analysis of cryptocurrency returns have been performed. Based on the collected daily data on capitalization, trading volumes and the price of cryptocurrencies for the period from 01.04.2014 to 29.05.2022, standard factors for cryptocurrencies based on market capitalization, trading volumes and the first momentum, as well as factors reflecting the return of the cryptocurrency market as a whole and the return of the stock market (S&P500) were constructed. The main method of estimating regressions is econometric modeling using the least squares method. The results of an empirical study indicate a positive relationship between the return of homogeneous groups of cryptocurrencies and the difference in the yields of the upper and lower 30% of cryptocurrencies in terms of market capitalization. Weighted return of the cryptocurrency market based on market capitalization (analogous to the S&P500) has a positive impact on the return of homogeneous groups of cryptocurrencies. The main conclusion of the study is that the transition to empirical analysis based on homogeneous groups of cryptocurrencies allowed us to obtain stable results indicating the absence of a relationship between the return of financial assets and the return of cryptocurrencies that are in a single homogeneous group. The scientific novelty of the work consists in presenting an assessment of the impact of modeled factors on various groups (portfolios) of cryptocurrencies in certain periods of time. This study recommends conducting a search for the determinants of cryptocurrency returns and subsequent analysis of their impact.
    Keywords: cryptocurrencies, return factors, pricing models, time series, return, market capitalization, financial models, CAPM, Fama-French
    JEL: G11 G12 G17 C01 C32 C51
    Date: 2022–11
  12. By: Nouha Anka Idrissi (FSJES - Faculté des Sciences Juridiques, Economique et Sociales de Mohammedia - UH2MC - Université Hassan II [Casablanca]); Rachid Smouni (FSJES - Faculté des Sciences Juridiques, Economique et Sociales de Mohammedia - UH2MC - Université Hassan II [Casablanca])
    Abstract: n a world where social media are playing an increasingly central role in political life, this article aims to present a systematic analysis of their use by political parties and analyzes their impact on political strategy and communication, especially in the Moroccan context. By examining the conceptual, historical and theoretical framework of social media, as well as the definitions and characteristics that accompany them, we have identified the main factors influencing their use by political parties. Through this study, we will also attempt to deduce a theoretical model of the relationship between political communication and social media users. This theoretical model will be based on a set of key hypotheses concerning the interaction between social media, political parties and users. By analyzing the impact of social media on the strategic communication of political parties, this study also examines the factors that influence this impact, while carrying out a comparative study of the use of social media bypolitical parties in other contexts. Analysis of current social media use practices by political parties in Morocco reveals a growing adoption of these platforms to reach and mobilize their target audiences, particularly during the 2021 elections. However, the effectiveness of social media depends on various factors, such as the social and economic structure of society, political culture and the organizational structure of political movements. To better understand the impact of social media, we also carried out a comparative analysis of their use in different contexts, such as protest movements in Egypt and elections in the USA. In conclusion, this study underlines the importance of a systematic analysis of the impact of social media in the communication and strategy of political parties in Morocco, while highlighting the local specificities that need to be taken into account for an effective use of these tools. The knowledge gained from this research can guide political decision-makers, activists and researchers in the development of mobilization and political communication strategies adapted to Moroccan realities.
    Keywords: Social media political parties political communication JEL Classification : M3, M31 Paper type : Theoretical article, Social media, political parties, political communication JEL Classification : M3
    Date: 2023–06–20
  13. By: Florence Jeannot (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes, INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics); Eline Jongmans (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes, UGA - Université Grenoble Alpes); Maud Dampérat (UL2 - Université Lumière - Lyon 2, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne)
    Abstract: To improve consumers' online shopping experiences, companies invest in the visual design of their websites. Although some studies show that visual design exerts a positive influence on consumer reactions, other studies do not confirm that influence. This research is aimed at exploring those contrasting findings by investigating two boundary variables (website use and user expertise) that delimit the scope of the positive influence of visual design on consumer intentions towards using and recommending e-commerce websites. Two preliminary studies (Study A and Study B) investigate the level at which visual design is mentally construed. The two main studies (Study 1 and Study 2) test our research hypotheses. The Study 1 results reveal that visual design exerts different effects on individuals' intentions depending on when the site is evaluated (before vs after use). Study 2 provides greater insight into the role of visual design after actual use of the website by considering the moderating role of user expertise. Those findings lead to the formulation of concrete recommendations about how e-retailers can create more engaging experiences.
    Keywords: visual design, digital marketing, user expertise, construal level theory, experimental method
    Date: 2022–01
  14. By: Prieger, James
    Abstract: This empirical study investigates the linkages among entrepreneurship in the form of establishment entry, local banking markets, and broadband availability, focusing on minority areas in the US. Lack of access to banks and lack of competition in the market for small business loans can make it more difficult for an entrepreneur to overcome the liquidity constraint to starting a new business. Broadband internet access can facilitate startups directly by enhancing firm profitability and indirectly by stimulating competition in the loan market, lowering the cost of access to finance, and enabling access to financial capital from fintech lenders. The barriers to new business creation erected by local banking markets are hypothesized to be even higher in minority areas, given the greater difficulty minority entrepreneurs face in raising financial capital. The empirical results show that broadband availability, local bank density, and competition in small business loans all facilitate startups. Broadband lowers barriers for entrepreneurs as hypothesized through both the direct and indirect channels. Broadband availability attenuates the barriers from insufficient access to local banks and lack of competition in small business loans from banks. For some industries, higher bank density and greater loan competition facilitate startups more in minority areas than in mostly white areas. Given that minority areas have many fewer banks per capita and much less loan competition than mostly white counties, the results imply that minority areas face even higher barriers to entrepreneurship from insufficient local formal financial resources. The moderating effect of broadband on local financial constraints applies even more so to Black communities; thus while the barriers for Black entrepreneurs may be higher, access to broadband has a greater alleviating effect on those barriers. Business creation in Hispanic areas also faces obstacles from the local banking environment, but broadband does not appear to help reduce them, although it still has a positive direct effect on entry. Additional evidence shows that broadband helped small businesses in minority areas procure more bank loans. Broadband access can thus help entrepreneurs in general, Blacks in particular, and to a lesser extent Hispanics surmount the liquidity constraint to starting a business. The implications of the results are discussed with reference to current and proposed policy to promote broadband availability, usage, and digital equity.
    Keywords: entrepreneurship; startups; minority entrepreneurship; broadband internet access; fintech; FCC Form 477 data; entrepreneurs
    JEL: D22 L26 R11
    Date: 2023–01–02
  15. By: Lars Hornuf; Paul P. Momtaz; Rachel J. Nam; Ye Yuan
    Abstract: We propose a taxonomy of cybercrime on the Ethereum blockchain and examine how cybercrime impacts victims’ risk-taking and returns. Our difference-in-differences analysis of a sample of victims and matched non-victims suggests that victims increase their long-term total risk-taking and earn lower risk-adjusted returns in the post-cybercrime period. Victims’ long-term total risk-taking increases because they increase diversifiable risk in the long term. The increased diversifiable risk correlates with victims’ withdrawal from altcoins after cybercrime. At the same time, the reduction in risk-adjusted returns correlates with increased trading activity and churn, due plausibly to managing cybercrime exposure. In the cross-section of Ethereum addresses, we show that the most-affluent victims take a systematic approach to restore their pre-cybercrime wealth level, while the least-affluent victims turn into gamblers. Finally, a parsimonious forensic model explains a good part of the addresses’ probability of being involved in cybercrime, both on the victim and the cybercriminal side.
    Keywords: Ethereum blockchain, market manipulation, financial fraud, token investment scam, cybercrime, cryptocurrency
    JEL: G14 G24 G30 L26 M13 O16
    Date: 2023
  16. By: Jessica Morales Herrera; Ra\'ul Salgado-Garc\'ia
    Abstract: In this paper, we present a measure of time irreversibility using trend pattern statistics. We define the irreversibility index as the Kullback-Leibler divergence between the distribution of uptrends subsequences (increasing trends) and the corresponding downtrends subsequences distribution (decreasing trends) in a time series. We use this index to analyze the degree of irreversibility in log return series over time, specifically focusing on five cryptocurrencies: Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash. Our analysis reveals a strong indication of irreversibility in all these cryptocurrencies and the characteristic evolves over time. We additionally evaluate the market efficiency for these cryptocurrencies based on a recently proposed information-theoretic measure. By comparing inefficiency and irreversibility, we explore the relationship between these statistical features. This comparison provides insight into the non-trivial relationship between inefficiency and irreversibility.
    Date: 2023–06
  17. By: Stefan Apostol; Eduardo Hernández-Rodríguez
    Abstract: Digitalisation has become a clear policy objective. Regions want to digitalise their economies to benefit from the digital world. This paper provides empirical evidence on how the adoption of new digital web technologies is shaped by previous regional digital capabilities. The analysis is based upon an economic complexity and relatedness framework using novel data on digital web technologies’ adoption for 278 European NUTS-2 regions between years 2000-2022. Results show that regions tend to adopt new digital web technologies when they already master related digital capabilities. This paper also shows how digital complexity is associated with labour productivity gains at the regional level. Conclusions shed light on how regions are adopting digital web technologies and serve as a tool for policymakers.
    Keywords: Digitalisation; digital web technologies; relatedness; economic complexity; productivity; European regions
    JEL: L86 O14 O33 R11
    Date: 2023–08
  18. By: Chowdhury, Emon Kalyan
    Abstract: This paper mainly intends to exhume the impact of blockchain on stock market. It applies literature review approach to gather information from different sources. The study observes a potential paradigm shift in this sector which will remove unnecessary intermediaries, ensure utmost transparency and security, and reduce the post transaction settlement time. It will also facilitate starts up to raise their capital through smooth security tokens. People will be able to participate in different meetings from remote places through this technology. Since blockchain comes with several adverse impacts, author recommends a collaborative approach to implement this technology for the overall benefits of the society.
    Keywords: Blockchain; Flexibility; Ledger, Speed; Transparency
    JEL: C0 C1 F3 F36 G0 M2
    Date: 2023–02–08
  19. By: Brühl, Volker
    Abstract: A key technology driving the digital transformation of the economy is artificial intelligence (AI). It has gained a high degree of public attention with the initial release of the chatbot ChatGPT, which demonstrates the potential of generative AI (GAI) as a relatively new segment within AI. It is widely expected that GAI will shape the future of many industries and society in the coming years. This article provides a brief overview of the foundations of generative AI ("GAI") including machine learning and what distinguishes it from other fields of AI. Furthermore, we look at important players in this emerging market, possible use cases and the expected economic potential as of today. It is apparent that, once again, a few US-based Big Tech firms are about to dominate this emerging technology and that the European tech sector is falling further behind. Finally, we conclude that the recently adopted Digital Markets Act (DMA) and the Digital Service Act (DSA) as well as the upcoming AI Act should be reviewed to ensure that the regulatory framework of European digital markets keeps up with the accelerated development of AI.
    JEL: O30 O40
    Date: 2023
  20. By: Ethan, Amelia
    Abstract: The Effects of Social Media Marketing on Customer’s Purchase Intention; a Moderated Mediation Model from Apparel Industry of Pakistan
    Date: 2023–08–04
  21. By: Alexander Cuntz; Paul J. Heald; Matthias Sahli
    Abstract: We provide quantitative evidence from museum collections about how copyright status affects the availability of digital images of artworks. The paper applies a regression discontinuity and differences-in-differences design to estimate online availability of artworks from U.S. collections on digital platforms. We find a strong increase in the availability of digital surrogates when copyright is perceived to expire and original artworks are likely to transition to the public domain. Moreover, artworks and surrogates made available see a large number of downstream reuses based on google image search data, which indicates online availability is of commercial and public value independent of right status. Notably, we show that upstream surrogates of public domain artworks made available by museums are positively correlated with higher image resolution quality as compared to digitized artworks still protected under copyright laws. At the same time, it seems expressed industry norms can help encourage U.S. museums to also make low-resolution surrogates of copyrighted artworks available.
    Keywords: Copyright, museum, digitization, creative industries, availability, public domain, paintings, images, empirical
    JEL: L17 O34
    Date: 2023–08
  22. By: Gabor, Daniela
    Abstract: Since (at least) Keynes we think of money as a time machine that links the irrevocable past to the uncertain future by credibly storing value. But time as shorthand for uncertainty downplays its role in the emergence of new forms of money. Instead, this paper theorizes monetary time as the set of practices through which the state and private finance order time on their balance sheets in the process of creating credible promises to pay at par. While time makes money, there is no unique temporal order that characterizes money/credit creation in capitalism. Rather, monetary time varies across different modes of organizing credit creation, in relationship banking vs market-based finance where credit is created via securities markets and financed through shadow money, promises to pay backed by collateral securities. The alchemy of (shadow) banking is the alchemy of monetary time, of money that can extinguish time without the state. To illustrate, the paper explores the money-time order perfected by New York broker-dealers in the call market that powered the American credit machine before the creation of the Federal Reserve in 1913. Brokers developed practices for daily re-pricing of collateral securities that rendered call (shadow) money credible stores of value. The day-based temporal order allowed brokers to pump credit into circulation via securities markets, liquidity into the payment system and moneyness into bank and paper money.
    Date: 2023–08–10
  23. By: Florence Jeannot (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes, INSEEC - Institut des hautes études économiques et commerciales | School of Business and Economics); Maud Dampérat (UL2 - Université Lumière - Lyon 2, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne); Marielle Salvador (Institut Paul Bocuse); Mariem El Euch Maalej (PSB - Paris School of Business - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université); Eline Jongmans (CERAG - Centre d'études et de recherches appliquées à la gestion - UGA - Université Grenoble Alpes, UGA - Université Grenoble Alpes)
    Abstract: Like many other activities, luxury gastronomy has been affected by the COVID-19 pandemic. To maintain a certain level of turnover, luxury restaurants had to innovate by digitalizing their offer, that is, delivering a customer journey that encompasses digital and physical consumer experiences. Based on the two approaches to customer experience (dimension-and stageoriented), the aim of this research is to propose and test a model of the digitalized gastronomy experience that includes its antecedents and consequences. A qualitative study (Study 1), involving 15 restaurant chefs and experts, defines the digitalized gastronomy experience and identifies the dimensions and customer journey stages associated with that experience. A quantitative study (Study 2) of 217 French consumers of luxury gastronomy validates the proposed conceptualization, its antecedents (website elements and psychological variables), and its consequences (purchase intentions). We also confirm the role of involvement in gastronomy as a contingent variable.
    Keywords: Luxury restaurants, Gastronomy, Digitalized experience, Online customer experience, Luxury restaurants Gastronomy Digitalized experience Online customer experience
    Date: 2022–07
  24. By: Jin Liu (University of Science and Technology of China); Xingchen Xu (University of Washington); Yongjun Li (University of Science and Technology of China); Yong Tan (University of Washington)
    Abstract: With the advent of general-purpose Generative AI, the interest in discerning its impact on the labor market escalates. In an attempt to bridge the extant empirical void, we interpret the launch of ChatGPT as an exogenous shock, and implement a Difference-in-Differences (DID) approach to quantify its influence on text-related jobs and freelancers within an online labor marketplace. Our results reveal a significant decrease in transaction volume for gigs and freelancers directly exposed to ChatGPT. Additionally, this decline is particularly marked in units of relatively higher past transaction volume or lower quality standards. Yet, the negative effect is not universally experienced among service providers. Subsequent analyses illustrate that freelancers proficiently adapting to novel advancements and offering services that augment AI technologies can yield substantial benefits amidst this transformative period. Consequently, even though the advent of ChatGPT could conceivably substitute existing occupations, it also unfolds immense opportunities and carries the potential to reconfigure the future of work. This research contributes to the limited empirical repository exploring the profound influence of LLM-based generative AI on the labor market, furnishing invaluable insights for workers, job intermediaries, and regulatory bodies navigating this evolving landscape.
    Date: 2023–08
  25. By: Bartzsch, Nikolaus; Brandi, Marco; de Pastor, Raymond; Devigne, Lucas; Maddaloni, Gianluca; Posada Restrepo, Diana; Sene, Gabriele
    Abstract: As part of the Eurosystem's annual banknote production planning, the national central banks draw up forecasts estimating the volumes of national-issued banknotes in circulation for the three years ahead. As at the end of 2021, more than 80 per cent of euro banknotes in circulation (cumulated net issuance) had been issued by the national central banks of France, Germany, Italy and Spain ('4 NCBs'). To date, the 4 NCBs have been using ARIMAX models to forecast the banknotes issued nationally in circulation by denomination ('benchmark models'). This paper presents the structural time series models developed by the 4 NCBs as an additional forecasting tool. The forecast accuracy measures used in this study show that the structural time series models outperform the benchmark models currently in use at each of the 4 NCBs for most of the denominations. However, it should be borne in mind that the statistical informative value of this comparison is limited by the fact the projection period is only twelve months.
    Keywords: euro, demand for banknotes, forecast of banknotes in circulation, structural time series models, ARIMA models, intervention variables
    JEL: C22 E41 E47 E51
    Date: 2023
  26. By: Georges Sfeir; Filipe Rodrigues; Maya Abou Zeid; Francisco Camara Pereira
    Abstract: Household travel surveys have been used for decades to collect individuals and households' travel behavior. However, self-reported surveys are subject to recall bias, as respondents might struggle to recall and report their activities accurately. This study addresses examines the time reporting error of public transit users in a nationwide household travel survey by matching, at the individual level, five consecutive years of data from two sources, namely the Danish National Travel Survey (TU) and the Danish Smart Card system (Rejsekort). Survey respondents are matched with travel cards from the Rejsekort data solely based on the respondents' declared spatiotemporal travel behavior. Approximately, 70% of the respondents were successfully matched with Rejsekort travel cards. The findings reveal a median time reporting error of 11.34 minutes, with an Interquartile Range of 28.14 minutes. Furthermore, a statistical analysis was performed to explore the relationships between the survey respondents' reporting error and their socio-economic and demographic characteristics. The results indicate that females and respondents with a fixed schedule are in general more accurate than males and respondents with a flexible schedule in reporting their times of travel. Moreover, trips reported during weekdays or via the internet displayed higher accuracies compared to trips reported during weekends and holidays or via telephones. This disaggregated analysis provides valuable insights that could help in improving the design and analysis of travel surveys, as well accounting for reporting errors/biases in travel survey-based applications. Furthermore, it offers valuable insights underlying the psychology of travel recall by survey respondents.
    Date: 2023–08

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