nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒10‒02
27 papers chosen by
Bernardo Bátiz-Lazo, Northumbria University


  1. Preventing Payments Fraud in the FinTech Era: New Evidence from a Behavioural Experiment By Jesper Akesson; John Gathergood; Edika Quispe-Torreblanca
  2. Between money and speculative asset: the role of financial literacy on the perception towards Bitcoin in Italy By Cascavilla, Alessandro
  3. Ethereum Proof of Stake は持続可能か : スマートコントラクト基盤間競争の観点から考える, Is Ethereum Proof of Stake Sustainable? : Considering from the Perspective of Competition Among Smart Contract Platforms By 斉藤, 賢爾; SAITO, Kenji; 副島, 豊; SOEJIMA, Yutaka; 杉浦, 俊彦; SUGIURA, Toshihiko; 北村, 行伸; KITAMURA, Yukinobu; 岩村, 充; IWAMURA, Mitsuru
  4. Small Businesses and Digital Platforms By Nishant Chadha; Viswanath Pingali; Daniel Sokol
  5. Chance or Chaos? Fractal geometry aimed to inspect the nature of Bitcoin By Esther Cabezas-Rivas; Felipe S\'anchez-Coll; Isaac Tormo Xaixo
  6. Fintech: Ask “What Next?” Not “What If?” By Patrick T. Harker
  7. Platform liability with reputational sanctions By Alessandro De Chiara; Juan José Ganuza; Fernando Gómez; Ester Manna; Adrián Segura
  8. Third-Degree Price Discrimination in Two-Sided Markets By Alexandre de Cornière; Andrea Mantovani; Shiva Shekhar; Alexandre de Cornière
  9. Small and Medium Enterprises Amidst the Pandemic and Reopening: Digital Edge and Transformation By Lin William Cong; Xiaohan Yang; Xiaobo Zhang
  10. Integrated Intermediation and Fintech Market Power By Greg Buchak; Vera Chau; Adam Jørring
  11. Managing Mental Accounts: Payment Cards and Consumption Expenditures By Michael Gelman; Nikolai Roussanov
  12. Marketplace Lending: A Resilient Alternative in the Face of Natural Disasters? By Pejman Abedifar; Hossein Doustali; Steven Ongena
  13. The Digital Welfare of Nations: New Measures of Welfare Gains and Inequality By Erik Brynjolfsson; Avinash Collis; Asad Liaqat; Daley Kutzman; Haritz Garro; Daniel Deisenroth; Nils Wernerfelt; Jae Joon Lee
  14. The Bright Side of the GDPR: Welfare-Improving Privacy Management By Chongwoo Choe; Noriaki Matsushima; Shiva Shekhar
  15. Transaction fee mechanism for Proof-of-Stake protocol By Wenpin Tang; David D. Yao
  16. Preventing Others from Commercializing Your Innovation: Evidence from Creative Commons Licenses By Erdem Dogukan Yilmaz; Tim Meyer; Milan Miric
  17. Consumer e-satisfaction through the use of e-services in the banking sector - changing consumer behavior ( Case study ? e-banking in Albania) By Violeta Neza; Edlira Llazo
  18. Patterns and Drivers of Financial Sector Growth in the Digital Age: Insights from a Study of Industrialized Economies By Khuong Vu; Simplice Asongu
  19. Agent-based Modeling and the Sociology of Money: a Framework for the Study of Coordination and Plurality By Eduardo Ferraciolli; Tanya Araújo
  20. Patterns and Drivers of Financial Sector Growth in the Digital Age: Insights from a Study of Industrialized Economies By Khuong Vu; Simplice Asongu
  21. Automated switching services By Garrod, Luke; Li, Ruochen; Wilson, Christopher
  22. The Co-holding Puzzle: New Evidence from Transactional-Level Data By John Gathergood; Arna Olafsson
  23. Hubnomics: Chapter 2 - Wise Coin (yzcoin) The Value of Money and the Value of Human By Alfarisi, Omar
  24. Team ties, embeddedness, and turnover intentions: integrating social networks and field theory By Sahoo, MadhuBala; Janardhanan, Niranjan S.; Ekkirala, Srinivas
  25. Managing the nanostore supply chain : Base-of-the-pyramid retail in emerging markets By Escamilla, Rafael
  26. “Fake news alert!”: A game of misinformation and news consumption behavior By Lodh, Rishab; Dey, Oindrila
  27. Disentangling Demand and Supply Inflation Shocks from Chilean Electronic Payment Data By Guillermo Carlomagno; Nicolas Eterovic; L. G. Hernández-Román

  1. By: Jesper Akesson (The Behaviouralist); John Gathergood (University of Nottingham); Edika Quispe-Torreblanca (University of Leeds)
    Abstract: Innovation in financial technology has granted consumers increased access to faster, more convenient payment services. This development has, however, also given rise to Authorised Push Payment (APP) fraud, where consumers are unwittingly manipulated into authorising transactions to counterfeit parties, such as fake online sellers. The annual costs of APP fraud are growing, and for example total more than £0.5bn in the United Kingdom alone. In this paper, we present the results from an online experiment tthat tests interventions designed to reduce the likelihood that consumers fall for APP fraud. These interventions were presented to consumers within a mobile bank application, and for instance, involved presenting warnings and increasing the salience of calls-to-action. Our analysis shows that redesigned calls-to-action can dramatically reduce fraud success rates, whereas traditional behavioural and risk-based warnings have much weaker effects. Our results show how redesigning consumer journeys can potentially reduce fraud prevalence.
    Keywords: fraud; financial technology; behavioural science
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:not:notcdx:2023-08&r=pay
  2. By: Cascavilla, Alessandro
    Abstract: With Bitcoin at the forefront, cryptocurrencies are gaining traction as an alternative asset investment, particularly among young investors. Although most of the empirical evidence has shown that it could not be defined as a currency, some Bitcoin users argue the opposite. This paper analyzes the factors influencing the perception of Bitcoin, i.e., whether it is a currency or an asset, with a focus on financial literacy among a subject pool of university students in Italy. The results show that, after controlling for several individual characteristics such as behavioral biases, personal attitudes, psychological traits, and socio-demographic information, this cryptocurrency is considered more than just an asset, and thus it could replace currency, among subjects with lower financial literacy, higher knowledge of Bitcoin, and those who do not trust the banking system. In contrast, Bitcoin is considered a speculative asset among those individuals with higher financial literacy. In line with the recent evidence that cryptocurrencies are mostly owned by young investors, results indicate the importance of increasing the level of financial education among them.
    Keywords: Bitcoin, Financial education, Financial literacy, Behavioral bias
    JEL: D14 D91 E41 O33
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118472&r=pay
  3. By: 斉藤, 賢爾; SAITO, Kenji; 副島, 豊; SOEJIMA, Yutaka; 杉浦, 俊彦; SUGIURA, Toshihiko; 北村, 行伸; KITAMURA, Yukinobu; 岩村, 充; IWAMURA, Mitsuru
    Abstract: Ethereum はThe Merge アップデート以降、Proof of Stake に移行したことで消費電力がより小さく、また、より安全になったと喧伝されている。しかし、仮にそうだとして、その状態は持続できるのだろうか。この論文では、Ethereum のネイティブ通貨であるEther (ETH)の価格が他のスマートコントラクト基盤との競争の影響を受けうることに注目し、Proof of Stake の設計がもたらすとされる安全性と持続可能性について疑問を投げかける。, Since the Merge update upon which Ethereum transitioned to Proof of Stake, it has been touted that it resulted in lower power consumption and increased security. However, even if that is the case, can this state be sustained? In this paper, we focus on the potential impact of competition with other smart contract platforms on the price of Ethereum’s native currency, Ether (ETH), thereby raising questions about the safety and sustainability purportedly brought about by the design of Proof of Stake.
    Keywords: Proof of Stake, Blockchain, Cryptocurrency, Smart Contract, Competition, ブロックチェーン, 仮想通貨, 資産資産, スマートコントラクト
    JEL: B31 E42 E51
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:hit:hituec:748&r=pay
  4. By: Nishant Chadha; Viswanath Pingali; Daniel Sokol
    Abstract: We investigate strategies of small businesses’ usage of digital platforms for advertising and sales. We rely on primary data from a quantitative survey of small business startups, and a few in-depth interviews of small business owners. We find that small firms prefer digital platforms for advertising and sales over conventional methods. As firms grow, while they continue to rely on digital advertising, their preference for conventional advertising (radio, television, etc.) increases. We find a strong correlation between the geographical spread of small firm sales, including exports, and their propensity to use digital platforms. We also find that small businesses multihome on both advertising and sales platforms. Multihoming occurs across established platforms and between established and nascent platforms. Our results enhance the understanding of how small firms rely on platforms and inform the policy debates on platform regulation.
    Date: 2023–09–18
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:14704&r=pay
  5. By: Esther Cabezas-Rivas; Felipe S\'anchez-Coll; Isaac Tormo Xaixo
    Abstract: The aim of this paper is to analyse the Bitcoin in order to shed some light on its nature and behaviour. We select 9 cryptocurrencies that account for almost 75\% of total market capitalisation and compare their evolution with that of a wide variety of traditional assets: commodities with spot and futures contracts, treasury bonds, stock indices, growth and value stocks. Fractal geometry will be applied to carry out a careful statistical analysis of the performance of the Bitcoin returns. As a main conclusion, we have detected a high degree of persistence in its prices, which decreases the efficiency but increases its predictability. Moreover, we observe that the underlying technology influences price dynamics, with fully decentralised cryptocurrencies being the only ones to exhibit self-similarity features at any time scale.
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2309.00390&r=pay
  6. By: Patrick T. Harker
    Abstract: During welcome remarks at the Seventh Annual Fintech Conference in Philadelphia, Patrick T. Harker, president and CEO of the Philadelphia Fed, spoke to the rapidly changing concept of money. “Everyone here recognizes that fintech presents not just opportunities but also challenges, ” he said, “and that we will not ultimately succeed if we only focus on the former and ignore the latter.” With the rollout of FedNow, he said the Federal Reserve is doing its part to foster “a more nimble and responsive banking system, ” while we witness “a technological revolution through AI” and provide leadership in quantum computing, “which has the potential to revolutionize security and problem-solving methodologies throughout the banking and financial services industry.” Harker also emphasized that the Fed will also continue to provide leadership to ensure a safe, efficient, fair, and equitable U.S. payments and financial system.
    Date: 2023–09–07
    URL: http://d.repec.org/n?u=RePEc:fip:fedpsp:96716&r=pay
  7. By: Alessandro De Chiara; Juan José Ganuza; Fernando Gómez; Ester Manna; Adrián Segura
    Abstract: This paper presents a framework where sellers, an online platform with monopoly power, and consumers transact. We aim to study the interaction between the imposition of liability on the platform, the reputational sanctions exerted by consumers, and the internal measures adopted by the platform to keep in check the sellers, whenever a product generates losses to consumers. We show that introducing direct legal liability of the platform may have both positive and negative effects for safety investments. Additionally, when sellers are heterogeneous (with respect to their sensitivity to the sanctions from consumers or from the platform), legal liability on the platform will have an impact on the selection of participating sellers, although the sign and size of the effect largely depend on paremeter values.
    Keywords: platform liability, third-party sellers, reputation
    JEL: K13 L15 L51
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:upf:upfgen:1868&r=pay
  8. By: Alexandre de Cornière; Andrea Mantovani; Shiva Shekhar; Alexandre de Cornière
    Abstract: We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on sellers’ type. In a model with linear demand on each side, we show that price discrimination: (i) increases participation on both sides; (ii) enhances total welfare; (iii) may result in a strict Pareto improvement, with both seller types being better-off than under uniform pricing. These results, which are in stark contrast to the traditional analysis of price discrimination, are driven by the existence of cross-group network effects. By improving the firm’s ability to monetize seller participation, price discrimination induces the platform to attract more buyers, which then increases seller participation. The Pareto improvement result means that even those sellers who pay a higher price under discrimination can be better-off, due to the increased buyer participation.
    Keywords: two-sided markets, price discrimination, network effects
    JEL: D42 D62 L11 L12
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10618&r=pay
  9. By: Lin William Cong (Cornell University Johnson Graduate School of Management); Xiaohan Yang (Peking University National School of Development); Xiaobo Zhang (Peking University Guanghua School of Management; International Food Policy Research Institute; Center for Global Development)
    Abstract: Using administrative universal firm registration data as well as primary offline and online surveys of small business owners in China, we examine (i) whether the digitization of business operations helps small and medium enterprises (SMEs) better cope with the pandemic shock, and (ii) if the pandemic has induced digital technology adoption. We identify significant economic benefits of digitization in increasing SMEs’ resilience against such a large shock, as seen through mitigated demand decline, sustainable cash flow, ability to quickly reopen, and positive outlook for growth. After the lockdown in January 2020, firm entries have exhibited a V-shaped pattern, with entries of e-commerce firms experiencing a less pronounced initial drop and a quicker rebound. The COVID-19 pandemic has also accelerated digital technology adoption of existing firms in various dimensions (captured by, e.g., the alteration of operation scope to include e-commerce activities, allowing remote work, and adoption of electronic information system), and the effect persists after one year of full reopening.
    Keywords: SMEs, COVID-19, Digital economy, E-commerce
    Date: 2021–12–10
    URL: http://d.repec.org/n?u=RePEc:cgd:wpaper:599&r=pay
  10. By: Greg Buchak (Stanford University); Vera Chau (University of Geneva; Swiss Finance Institute); Adam Jørring (Boston College)
    Abstract: We document that in the US residential mortgage market, the share of integrated intermediaries acting as both originator and servicer has declined dramatically. Exploiting a regulatory change, we show that borrowers with integrated servicers are more likely to refinance, and conditional on refinance, are more likely to be recaptured by their own servicer. Recaptured borrowers pay lower fees relative to other refinancers. This trend is partially offset by a rise in integrated fintech originator-servicers, who recapture at higher frequency but at worse terms. We build and calibrate a dynamic structural model to interpret these facts and quantify their impact on equilibrium outcomes. Our model suggests that integreated intermediaries enjoy a marginal cost advantage when refinancing recaptured borrowers, and fully disintegrating them would reduce refinancing frequencies and increase fees. Fintechs use technology to reacquire customers and reduce borrower inertia against refinancing. This endogenously creates market power, which fintechs exploit through higher fees. Despite worse terms ex-post, fintechs increase consumer welfare ex-ante by increasing refinancing frequencies. Taken together, our results highlight the importance of intermediaries’ scope in consumer financial outcomes and highlight a novel, quantitatively important application of fintech: customer acquisition.
    Keywords: Financial intermediation, disintermediation, mortgage servicing, refinancing, fintech
    JEL: G21 G23 E44 L12 L42 O16 O33
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:chf:rpseri:rp2367&r=pay
  11. By: Michael Gelman; Nikolai Roussanov
    Abstract: Does mental accounting matter for total consumption expenditures? We exploit a unique setting in which individuals exogenously received a new credit card, without requesting one. Using random variation in the time of receipt we show that individuals temporarily increase total consumption expenditure by making purchases with the new card without reducing spending on the others. We do not observe a corresponding increase in indebtedness. Total consumption expenditure rises even for the least liquidity-constrained individuals. The evidence is consistent with consumers treating methods of payment as nonfungible budget categories, as suggested by models of mental accounting and narrow bracketing.
    JEL: D01 D12 D31 D91 D99 G02 G40 G41 G5 G50 G51 G53
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31613&r=pay
  12. By: Pejman Abedifar (University of St Andrews; Khatam University); Hossein Doustali (Khatam University); Steven Ongena (University of Zurich; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR))
    Abstract: What is the role played by marketplace lending after natural disasters? Analyzing a sample of more than one and a half million observations from Lending Club around the 33 worst natural disasters that occurred between 2013 and 2017, we find that there is an increase in the demand for marketplace loans by almost 10%. Yet, the platform does not restrict lending to individuals in the affected areas, nor do we observe an increase in interest rates. Interestingly, the performance of borrowers who receive loans after a natural disaster is not significantly different from the borrowers during normal times, indicating that the platform is competent at efficiently meeting the extra loan demand.
    Keywords: Marketplace Lending, FinTech, Natural Disasters, Access to Finance, Credit Risk Assessment
    JEL: D14 E51 G2 Q54
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:chf:rpseri:rp2378&r=pay
  13. By: Erik Brynjolfsson; Avinash Collis; Asad Liaqat; Daley Kutzman; Haritz Garro; Daniel Deisenroth; Nils Wernerfelt; Jae Joon Lee
    Abstract: Digital goods can generate large benefits for consumers, but these benefits are largely unmeasured in the national accounts, including GDP and productivity. In this paper, we measure welfare gains from 10 popular digital goods across 13 countries by conducting large-scale incentivized online choice experiments on representative samples of nearly 40, 000 people. We estimate that these goods—many of which are free to users—generate over $2.5 trillion in aggregate consumer welfare across these countries per year, which is roughly equivalent to 6% of their combined GDP. We find that lower-income individuals and lower-income countries obtain relatively larger welfare gains from these goods compared to higher-income individuals and countries. This suggests that digital goods may reduce inequality in welfare within and across countries by disproportionately benefiting lower-income groups.
    JEL: O30 O4
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31670&r=pay
  14. By: Chongwoo Choe; Noriaki Matsushima; Shiva Shekhar
    Abstract: We study the GDPR’s opt-in requirement in a model with a firm that provides a digital service and consumers who are heterogeneous in their valuations of the firm’s service as well as the privacy costs incurred when sharing personal data with the firm. We show that the GDPR boosts demand for the service by allowing consumers with high privacy costs to buy the service without sharing data. The increased demand leads to a higher price but a smaller quantity of shared data. If the firm’s revenue is largely usage-based rather than data-based, then both the firm’s profit and consumer surplus increase after the GDPR, implying that the GDPR can be welfare-improving. But if the firm’s revenue is largely from data monetization, then the GDPR can reduce the firm’s profit and consumer surplus.
    Keywords: GDPR, opt-in, opt-out, privacy management, welfare
    JEL: D18 D61 K24 L12 L51 L86
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10617&r=pay
  15. By: Wenpin Tang; David D. Yao
    Abstract: We study a mechanism design problem in the blockchain proof-of-stake (PoS) protocol. Our main objective is to extend the transaction fee mechanism (TFM) recently proposed in Chung and Shi (SODA, p.3856-3899, 2023), so as to incorporate a long-run utility model for the miner into the burning second-price auction mechanism $\texttt{BSP}(\gamma)$ proposed in Chung and Shi (where $\gamma$ is a key parameter in the strict $\gamma$-utility model that is applied to both miners and users). First, we derive an explicit functional form for the long-run utility of the miner using a martingale approach, and reveal a critical discontinuity of the utility function, namely a small deviation from being truthful will yield a discrete jump (up or down) in the miner's utility. We show that because of this discontinuity the $\texttt{BSP}(\gamma)$ mechanism will fail a key desired property in TFM, $c$-side contract proofness ($c$-SCP). As a remedy, we introduce another parameter $\theta$, and propose a new $\texttt{BSP}(\theta)$ mechanism, and prove that it satisfies all three desired properties of TFM: user- and miner-incentive compatibility (UIC and MIC) as well as $c$-SCP, provided the parameter $\theta$ falls into a specific range, along with a proper tick size imposed on user bids.
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2308.13881&r=pay
  16. By: Erdem Dogukan Yilmaz; Tim Meyer; Milan Miric
    Abstract: Online innovation communities are an important source of innovation for many organizations. While contributions to such communities are typically made without financial compensation, these contributions are often governed by licenses such as Creative Commons that may prevent others from building upon and commercializing them. While this can diminish the usefulness of contributions, there is limited work analyzing what leads individuals to impose restrictions on the use of their work. In this paper, we examine innovators imposing restrictive licenses within the 3D-printable design community Thingiverse. Our analyses suggest that innovators are more likely to restrict commercialization of their contributions as their reputation increases and when reusing contributions created by others. These findings contribute to innovation communities and the growing literature on property rights in digital markets.
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2309.00536&r=pay
  17. By: Violeta Neza (Faculty of Business, University "Aleksander Moisiu", Durrës); Edlira Llazo (Faculty of Business, University "Aleksander Moisiu", Durrës)
    Abstract: Technology is the main word of all the activities we carry out today, but the developments it has received in recent years have facilitated the way of searching and accessing information as well as obtaining the requested service in real time, avoiding unnecessary expenses and movements. In this way, in addition to achieving consumer satisfaction and changing consumer behavior influenced by technological developments, the application of e-services is a way to influence the development of a sustainable economy and the creation of green value, since through these online services the environmental pollution from the restriction of vehicle movements to receive offline services. This study has made use of secondary and primary data through a distributed questionnaire where only 150 questionnaires were valid for analysis. The study aims to highlight the effect of using online bank applications on consumer satisfaction and consumer behavior. The results of the study show that the e-services offered by second-level banks have significantly increased consumer satisfaction and positively influenced behavior by generating green value.
    Keywords: Technology, Consumer satisfaction, Consumer behaviour, Sustainable economy, Green value
    JEL: M31 M37 M39
    URL: http://d.repec.org/n?u=RePEc:sek:iefpro:13815899&r=pay
  18. By: Khuong Vu (National University of Singapore, Singapore); Simplice Asongu (Johannesburg, South Africa)
    Abstract: The financial sector in advanced economies has undergone significant evolution driven by restructuring, globalization, and the digital revolution, which have profoundly shaped its developmental dynamics. This study investigates the forces behind the growth and convergence of the financial sector across 13 advanced economies from 2000 to 2015, focusing on the effects of digital transformation. The investigation unveils several noteworthy findings concerning the financial sector. First, most nations experienced substantial growth in value-added, coupled with a significant decrease in employment and robust advancements in labor productivity. Next, the primary drivers of labor productivity growth and convergence across many economies were driven by total factor productivity, labor quality, and digital transformation. Lastly, digital transformation not only directly contributed to the augmentation of labor productivity, as quantified through growth accounting estimation, but also wielded a considerable impact on the expansion of total factor productivity and the streamlining of the workforce.
    Keywords: financial sector; productivity; digital transformation; innovation; catchup; industrialized economies
    JEL: O16 O30 O40 O57
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:agd:wpaper:23/049&r=pay
  19. By: Eduardo Ferraciolli; Tanya Araújo
    Abstract: The institution of money can be seen as a foundational social mechanism providing communities with the ability to quantify the results of economic processes and collectively regulate independent activities of production and trade – money can be said, indeed, to constitute the micro-macro link in economics. As such, investigations of money’s role in the economy can be fruitfully combined with the tools of social simulation. This paper revisits some of the main positions taken in the contested landscape of monetary theory, evaluating how they might serve as a foundation for the development of a new generation of conceptual and empirical agent-based models.We start out by presenting a comparative review of the way different intellectual traditions in mainstream economics, heterodox economics, and economic sociology attempt to specify the nature of money as an institution and clarify its role in the economy. We extract the key "concepts of money" that each approach emphasizes, paying especially close attention to the contrast between the sociology of money and the microfoundations-related traditions in economics (focusing on "money is memory" models, search-theory and mechanism design). We then review the current literature applying agent-based modeling to questions surrounding the nature of money, assessing some of the main contributions from the perspectives of generative epistemology and of the key concepts identified above. We conclude by indicating different research directions in which we believe agent-based models, in combination with the sociology of money, still have the potential to provide new answers to old questions in monetary theory: by clarifying convergence processes related to money of account, by illustrating the formation of economic structure through symbolic mediation, by constructing tools for analyses of intersubjectivity and coordination, or by providing formal generalization to the social-monetary patterns that are currently being revealed in the wealth of empirical data originating from digital complementary currencies and new histories of money.
    Keywords: monetary theory, agent-based modeling, economic sociology
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:ise:remwps:wp02852023&r=pay
  20. By: Khuong Vu (National University of Singapore, Singapore); Simplice Asongu (Johannesburg, South Africa)
    Abstract: The financial sector in advanced economies has undergone significant evolution driven by restructuring, globalization, and the digital revolution, which have profoundly shaped its developmental dynamics. This study investigates the forces behind the growth and convergence of the financial sector across 13 advanced economies from 2000 to 2015, focusing on the effects of digital transformation. The investigation unveils several noteworthy findings concerning the financial sector. First, most nations experienced substantial growth in value-added, coupled with a significant decrease in employment and robust advancements in labor productivity. Next, the primary drivers of labor productivity growth and convergence across many economies were driven by total factor productivity, labor quality, and digital transformation. Lastly, digital transformation not only directly contributed to the augmentation of labor productivity, as quantified through growth accounting estimation, but also wielded a considerable impact on the expansion of total factor productivity and the streamlining of the workforce.
    Keywords: financial sector; productivity; digital transformation; innovation; catchup; industrialized economies
    JEL: C20 R00 Q40 Q52 L52 N57
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:exs:wpaper:23/049&r=pay
  21. By: Garrod, Luke; Li, Ruochen; Wilson, Christopher
    Abstract: Automated switching services have recently emerged as online intermediaries that use algorithms to facilitate consumer switching. Unlike price comparison websites, these services i) act on behalf of consumers by actively switching them to the cheapest deals, ii) typically charge consumers directly, rather than charging suppliers commission, and iii) often survey across the entire market. We offer the first theoretical analysis of such services. In an oligopoly model with imperfect price information, we characterize an equilibrium with an auto-switching service, and analyze its impact on market outcomes and welfare.
    Keywords: Consumer Switching; Consumer Search; Price Information; Intermediary; Automated; Competition.
    JEL: D43 D83 L13
    Date: 2023–09–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118449&r=pay
  22. By: John Gathergood (University of Nottingham); Arna Olafsson (Danish Finance Institute & CEPR)
    Abstract: Using detailed and highly disaggregated data on household finances, we examine the tendency of consumers to “co-hold” savings and debt simultaneously. The disaggregated nature of the data allows us to calculate co-holding at daily frequency. We find that coholding is rare and mostly occurs in short spells within the month, but is a persistent behavior among a subset of consumers. For this group, we find evidence in support of explanations for co-holding based upon functional mental accounting in which agents hold spending and saving accounts, while we find less support for rational explanations.
    Keywords: co-holding; credit card puzzle; consumer credit; household finance
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:not:notcdx:2022-18&r=pay
  23. By: Alfarisi, Omar
    Abstract: People use the money to value goods they demand in the traditional process. In this chapter, I introduce a novel process that starts by asking: What if goods use the money to generate a valuation of people? What does this above question mean? I know it is not easy to imagine. Therefore, let's take an example: when I pay for my education tuition fees, the goods, in my case, are knowledge. If we rewrite the first question by embedding the example, it becomes, "What if money is used by knowledge to supply his valuation?"
    Date: 2023–08–23
    URL: http://d.repec.org/n?u=RePEc:osf:osfxxx:zrb9d&r=pay
  24. By: Sahoo, MadhuBala; Janardhanan, Niranjan S.; Ekkirala, Srinivas
    Abstract: Although social networks have been examined in teams, an understanding of the consequences of team social network ties on employees’ attitudes beyond team boundaries is hard to come by. Integrating insights from social networks and gestalt field theory, we examine interactive effects of centrality and density of inclusion and exclusion ties in teams on the relationship between employees’ community embeddedness—connectedness with the broader social context—and turnover intentions. In a multi-source field study of 215 employees in 34 teams, we demonstrate that inclusion and exclusion centrality and team exclusion density weaken the effect of community embeddedness on turnover intention.
    Keywords: community embeddedness; gestalt field theory; inclusion/exclusion; team social networks; turnover intentions; Sage deal
    JEL: J50
    Date: 2023–08–20
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:119924&r=pay
  25. By: Escamilla, Rafael (Tilburg University, School of Economics and Management)
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:tiu:tiutis:7518aa1a-4ba1-45af-8d73-db3446fbae52&r=pay
  26. By: Lodh, Rishab; Dey, Oindrila
    Abstract: This paper examines the impact of behavioral factors in propagation of fake news. Using Spence (1978) framework, we find that the perfect Bayesian Nash equilibrium is pooling equilibrium, i.e., fake news producers to mimic actions of true news producer, which is influenced by factors like ideology, awareness, informational utility and fear of missing out information of news- consumers. Interestingly, the chain of fake news can be broken iff degree of awareness is significantly high. A threshold level of awareness level is determined using simulation, beyond which pooling breaks despite of high influence of other factors, which throws light on possible policy interventions.
    Keywords: Fake news, Asymmetric Information, Bayesian games, Signaling, Fact checking
    JEL: D82 L20
    Date: 2023–08–05
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118371&r=pay
  27. By: Guillermo Carlomagno; Nicolas Eterovic; L. G. Hernández-Román
    Abstract: We propose a novel methodology to track inflation dynamics in Chile by identifying supply and demand shocks at a highly disaggregated level using prices and quantities information from elec-tronic payments data. We estimate SVAR models where supply and demand shocks are identified with sign restrictions. These estimates are then used to group products into categories of CPI inflation. As opposed to similar studies using categorical-level regressions (e.g., Shapiro, 2022), supply and demand shocks may coexist at a given point in time for a particular category, providing a much richer environment for the policymaker. For the Chilean case, our decomposition provides a reasonable narrative to explain the dynamics of inflation since the start of the COVID-19 pandemic and thereafter. The decomposition of headline inflation obtained by adding up the disaggregates is consistent with that coming from a large DSGE model of the Chilean economy. Keywords: Emerging Economy, Electronic Payment Data, COVID-19, inflation, supply and demand shocks, SVAR.
    Date: 2023–07
    URL: http://d.repec.org/n?u=RePEc:chb:bcchwp:986&r=pay

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