nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒10‒23
thirty-two papers chosen by
Bernardo Bátiz-Lazo, Northumbria University


  1. Mobile Money, Interoperability, and Financial Inclusion By Markus K. Brunnermeier; Nicola Limodio; Lorenzo Spadavecchia
  2. 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
  3. Examining CBDC and Wholesale Payments By Jon Durfee; Jesse Leigh Maniff; Priyanka Slattery
  4. A Bayesian approach for the determinants of bitcoin returns By Theodore Panagiotidis; Georgios Papapanagiotou; Thanasis Stengos
  5. Can Online Platforms Promote Women-Led Exporting Firms? By Poole, Jennifer P.; Volpe Martincus, Christian
  6. Consumer Acceptance of Mobile Shopping Apps, From Basic Apps to AI-Conversational Apps: A Literature Review By Taoufiq Dadouch; Bouchra Bennani; Malika Haoucha
  7. Platform Competition and Information Sharing By Georgios Petropoulos; Bertin Martens; Geoffrey Parker; Marshall Van Alstyne
  8. e-Commerce Platforms and Self-preferencing By Federico Etro
  9. Conditional Cash Transfers, Debit Cards and Financial Inclusion: Experimental Evidence from Argentina By Cruces, Guillermo
  10. Social media use for offline political action (OPA) and corruption in Africa: impacts and transmission channels By Sylvain B. Ngassam; Simplice Asongu; Gildas T. Ngueleweu
  11. Platform-Enabled Information Disclosure By Jacopo Gambato; Martin Peitz
  12. The dynamic relationship between digital currency and other financial markets in developed and emerging markets By Bonga-Bonga, Lumengo; Khalique, Muhammad Masood
  13. Assessing the Solvency of Virtual Asset Service Providers: Are Current Standards Sufficient? By Pietro Saggese; Esther Segalla; Michael Sigmund; Burkhard Raunig; Felix Zangerl; Bernhard Haslhofer
  14. The Expansion of Varieties in the New Age of Advertising By Salomé Baslandze; Jeremy Greenwood; Ricardo Marto
  15. Platform cooperatives and employment: An alternative for platform work By OECD
  16. Temporal and Geographical Analysis of Real Economic Activities in the Bitcoin Blockchain By Rafael Ramos Tubino; Rémy Cazabet; Natkamon Tovanich; Céline Robardet
  17. Anonymous Credentials: Secret-Free and Quantum-Safe By Raza Ali Kazmi; Cyrus Minwalla
  18. CBDC and the operational framework of monetary policy By Jorge Abad; Galo Nuño Barrau; Carlos Thomas
  19. Token economics scoping review: Annotated bibliography By Van de Vyver, Mark
  20. The Returns to Viral Media: The Case of US Campaign Contributions By Böken, Johannes; Draca, Mirko; Mastrorocco, Nicola; Ornaghi, Arianna
  21. Cryptocarbon: How Much Is the Corrective Tax? By Mr. Shafik Hebous; Nate Vernon
  22. The Bright Side of the GDPR: Welfare-improving Privacy Management By Chongwoo Choe; Noriaki Matsushima; Shiva Shekhar
  23. Simple Macroeconomics of Crypto Currency and the Political Economy of Monetary Policy in a Democracy By Sugata Marjit; Kausik Gupta
  24. Transforming Rural Trade: The Impact of Government-Initiated E-commerce Platform on Local Specialty Sales By Xintong Han; Jan Victor Dee; Shaojia Wang
  25. Fingerprinting Bitcoin entities using money flow representation learning By Natkamon Tovanich; Rémy Cazabet
  26. Can Patience Account for Subnational Differences in Student Achievement? Regional Analysis with Facebook Interests By Eric A. Hanushek; Lavinia Kinne; Pietro Sancassani; Ludger Woessmann
  27. Anonymous credit By Wang, Chien-Chiang; Li, Yiting
  28. Empowering communities with platform cooperatives: A catalyst for local development By OECD
  29. An Empirical Analysis on Remittances and Financial Development in Latin American Countries By Sumaiya Binta Islam; Laboni Mondal
  30. Alternative Personal Credit Scoring Tests without Financial History, A Novel Method, Credit Needs and Democracy By syrup, soul
  31. Financial Inclusion and Barriers to Funding Micro-Entrepreneurs in MENA Countries Prior and During the COVID-19 Pandemic By Imène Berguiga; Philippe Adair
  32. Do Twitter’s Science Stars Get a Citation Premium? By Christian Lessmann; Ali Sina Önder

  1. By: Markus K. Brunnermeier; Nicola Limodio; Lorenzo Spadavecchia
    Abstract: This paper investigates the tradeoff between competition and financial inclusion resulting from the vertical integration between mobile network and money operators. Joining newly assembled data on mobile money fees through the WayBack machine, with sources on network coverage and financials, we examine the staggering across African operators and countries of platform interoperability – a policy that promotes transactions and competition across mobile money operators. Our results show that interoperability benefits users by lowering mobile money fees and their dispersion across operators. However, these positive effects are offset by a decrease in mobile towers and network coverage, especially in rural and poor districts, which, in turn, leads to a lower financial inclusion. We note that combining interoperability with subsidies for rural telecommunications delivers lower fees without hurting coverage.
    JEL: E4 O16 O30
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31696&r=pay
  2. 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.
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2309.12322&r=pay
  3. By: Jon Durfee; Jesse Leigh Maniff; Priyanka Slattery
    Abstract: This paper explores whether a new settlement asset in the form of central bank money is essential for a new platform that processes wholesale payment transactions. Central bank money currently exists for wholesale transactions in the form of depository institution balances at the Federal Reserve (Reserve Banks) used for Fedwire® Funds Service (Fedwire).
    Date: 2023–09–08
    URL: http://d.repec.org/n?u=RePEc:fip:fedgfn:2023-09-08-2&r=pay
  4. By: Theodore Panagiotidis (Department of Economics, University of Macedonia); Georgios Papapanagiotou (Department of Economics, University of Macedonia); Thanasis Stengos (Department of Economics and Finance University of Guelph, Canada)
    Abstract: The aim of this paper is to identify potential determinants of bitcoin returns. We consider a wide range of various determinants including economic, financial and technology-related factors as well as uncertainty and attention indices. The analysis is conducted using LASSO models estimated using both frequentist and Bayesian methods. We evaluate the ability of these estimators to forecast bitcoin returns. The results indicate that a Bayesian LASSO model that takes into account the stochastic volatility and the leverage effect provides the most accurate forecasts. Using this model we are able to identify alternative drivers of bitcoin returns and analyse the underlying mechanisms that affect bitcoin returns.
    Keywords: bitcoin, cryptocurrency, LASSO, Bayesian, CBDC
    JEL: G12 G15 C11 D80
    Date: 2023–05
    URL: http://d.repec.org/n?u=RePEc:mcd:mcddps:2023_05&r=pay
  5. By: Poole, Jennifer P.; Volpe Martincus, Christian
    Abstract: How can policymakers promote women-led exporting firms? In this paper, we study the role of online business platforms to reduce informational barriers to exporting for women entrepreneurs. We hypothesize that, if the costs associated with accessing digital platforms are more symmetric across gender than traditional trade costs, digital trade platforms can play an important role in making trade more gender equal. To assess this hypothesis, we combine information on firms' participation in ConnectAmericas , a free and purely informational online platform, and detailed firm level export data of a developing country over a long period. We find that participation in this platform is associated with a significantly larger increase in exports for women entrepreneurs than for men managed firms in otherwise identical products and destinations. Given existing evidence on the role of women managed businesses in reducing gender earnings inequality, these results suggest that policies which encourage women participation in online environments to reduce the informational barriers associated with operating in foreign markets have the capacity to promote gender equality more broadly.
    Keywords: Online Platforms;Firms;exports;gender;Trade promotion;Latin America
    JEL: F13 F14 J16 L15 L26
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:13016&r=pay
  6. By: Taoufiq Dadouch (University Hassan II [Casablanca]); Bouchra Bennani; Malika Haoucha
    Abstract: The rapid proliferation of Digital marketing, due to recent digital transformation, has been accentuated by the effects of the Covid-19 pandemic. This can be noticed with changes in customer shopping behavior while adopting various digital marketing tools such as social media, E & M-commerce, and very recently AI enablers such as conversational agents/apps (Virtual Assistants & Chatbots). The purpose of this paper is to present some literature findings on consumer behavior toward mobile shopping via AI-Conversational-apps (Virtual Assistants & Chatbots), as compared to Mobile basic apps. Indeed, Mobile Shopping via AI-Conversational apps and their consumer acceptance behavior have become an important research issue worldwide in terms of involved predictors, theories, and methodologies. In summary, the literature showed that Anthropomorphism Construct (i.e., the degree to which a user perceives AI-Conversational apps to be humanlike) emerged as the primary additional predictor for acceptance of M-Shopping via AI-Conversational apps (AI-CA), in addition to mobile primary apps determinants. These determinants consist of utilitarian, hedonic & social antecedents adapted mainly from the UTAUT2 model (Unified theory of acceptance & use of technology), including mainly; performance expectation & effort expectation, hedonic motivation, social influence, and facilitating conditions. Literature findings also clarified the lack & importance of multimarket & multicultural research on M-Shopping apps' acceptance (mainly AI-CA). Indeed, not only developed markets but also developing ones, have seen surging rates of smartphone penetration conditions & mobile internet connectivity, along with changing consumer behaviors and dominating M-Shopping-apps activities. This offers great potential for research on M-Shopping-AI-CA acceptance behaviors in such developing countries, mainly in Morocco.
    Keywords: Digital Marketing Consumer behavior Mobile Shopping Artificial Intelligence AI-Conversational apps. JEL Classification : M21 M31 M37 M39 Paper type: Theoretical Research, Digital Marketing, Consumer behavior, Mobile Shopping, Artificial Intelligence, AI-Conversational apps. JEL Classification : M21, M31, M37, M39 Paper type: Theoretical Research
    Date: 2023–08–29
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04194657&r=pay
  7. By: Georgios Petropoulos; Bertin Martens; Geoffrey Parker; Marshall Van Alstyne
    Abstract: Digital platforms, empowered by artificial intelligence algorithms, facilitate efficient interactions between consumers and merchants that allow the collection of profiling information which drives innovation and welfare. Private incentives, however, lead to information asymmetries resulting in market failures. This paper develops a product differentiation model of competition between two platforms to study private and social incentives to share information. Sharing information can be welfare-enhancing because it solves the data bottleneck market failure. Our findings imply that there is scope for the introduction of a mandatory information sharing mechanism from big tech to their competitors that help the latter to improve their network value proposition and become more competitive in the market. The price of information in this sharing mechanism matters. We show that price regulation over information sharing like the one applied in the EU jurisdiction increases the incentives of big platforms to collect and analyze more data. It has ambiguous effects on their competitors that depend on the exact relationship between information and network value.
    Keywords: information sharing, digital platforms, data bottleneck, data portability
    JEL: D47 D82 K21 L21 L22 L40 L41 L43 L51 L86
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10663&r=pay
  8. By: Federico Etro
    Abstract: I survey the literature on eCommerce platforms with particular emphasis on the antitrust debate on self-preferencing by Amazon. The business model of hybrid marketplaces is based on monetization through commissions on third party sellers hosted on the platform and direct margins on own products. Recent theoretical and empirical work on endogenous marketplace structures has analyzed the welfare impact of the dual mode and of recommendation algorithms that have been associated with self-preferencing strategies. The trade offs are complex and one cannot easily conclude that Amazon entry is biased to expropriate third party sellers or that a ban on dual mode, self-preferencing or copycatting would benefit consumers.
    Keywords: eCommerce, Endogenous marketplace structures, Business models, Self-preferencing.
    JEL: L1 L4
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:frz:wpaper:wp2023_07.rdf&r=pay
  9. By: Cruces, Guillermo
    Abstract: Cash transfer and other social protection programs in developing countries have often been accompanied by measures to foster financial inclusion, such as the adoption and use of bank accounts and electronic means of payments. Argentina's social benefits are paid in bank accounts and accessed through debit cards. With the simultaneous objective of fostering formality among beneficiaries and stores, the use of debit cards for purchases has been incentivized by means of additional subsidies. We studied the low take-up of these extra benefits by means of a field experiment involving 400, 000 beneficiaries of Argentinas largest conditional cash-transfer program (with 2.2 million beneficiaries who are the parents of four million children, 40% of the countrys 0-17-year olds). By using their debit card to spend the allowance, rather than withdrawing cash from ATMs, they can receive a rebate of 15% of their expenditures. However, they systematically fail to claim this benefit: only about 25% of beneficiaries receive this transfer. Our experiment provided information about the effectiveness of an information campaign conducted via text messages or through on-screen messages at ATM machines. The campaign increased purchases with debit cards and subsequent rebates significantly but not substantially in the short run. However, beneficiaries who increased their use of debit cards do not exhibit a higher probability of having access to credit through the financial system, nor higher levels of formal employment. The results indicate that cultural factors (a preference for cash), administrative hassle and citizen security issues are relevant issues that limit the potential of financial inclusion through increased use of digital means of payment.
    Keywords: Take-up of social benefits;financial inclusion
    JEL: C93 H26 K34 K42 Z13
    Date: 2023–08
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:13034&r=pay
  10. By: Sylvain B. Ngassam (Dschang, Cameroon); Simplice Asongu (Yaoundé, Cameroon); Gildas T. Ngueleweu (Dschang, Cameroon)
    Abstract: Despite a growing literature on the determinants of corruption, existing studies are sparse on the channels through which social media curbs corruption using panel data. Social media is captured by the percentages of the population and elites that use social media for offline political actions (OPA). This research uses annual data from a panel of 47 African countries over the period 2000–2018. Results show that social media used by the population for OPA directly curbs executive, judicial and legislative corruption. The use of social media by elites for OPA boosts corruption in the judicial sector. Moreover, social media indirectly curbs corruption through their effects on civil society participation. Reducing corruption in Africa requires inter alia, policies aimed at promoting the use of social media for OPA, the emergence of dynamic and effective civil society participation and the improvement of the quality of democracy.
    Keywords: social media, executive corruption, judicial corruption, legislative corruption, democracy, civil society
    JEL: G20 O38 O40 O55 P37
    Date: 2023–01
    URL: http://d.repec.org/n?u=RePEc:exs:wpaper:23/059&r=pay
  11. By: Jacopo Gambato; Martin Peitz
    Abstract: We analyze consumers’ voluntary information disclosure in a platform setting. For given consumer participation, the platform and sellers tend to prefer limited disclosure of consumer valuations, in contrast to consumers. With endogenous consumer participation, seller and platform incentives may be misaligned, and sellers may be better off when consumers can disclose their valuations. A regulator acting in the best interest of consumers and/or sellers may want to intervene and force the platform to employ a disclosure technology that enables consumers to voluntarily disclose information from a richer message space.
    Keywords: Two-sided platform, platform governance, information disclosure, information design, privacy regulation, e-commerc
    JEL: L12 L15 D21 D42 M37
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_468&r=pay
  12. By: Bonga-Bonga, Lumengo; Khalique, Muhammad Masood
    Abstract: The paper examines shock spillovers between traditional currencies, digital currencies, and equity markets across emerging and developed economies. In addition, the study examines how connectivity varies across short- and long-term investment horizons to provide insight for asset managers and investors with different investment horizons. The empirical results reveal that Ethereum and Bitcoin, representing digital currencies, are the primary contributors to total return spillover among the three markets over different time frames in developed economies. When contrasting emerging and developed economies, the paper finds that, over the long term, the traditional currency and equity markets in emerging economies play a more significant role in total return spillover compared to those in developed economies. As a result of this research, asset managers and investors will gain invaluable insights regarding optimal asset allocation and investment decisions over short and long term horizons.
    Keywords: Spillover, Digital Currency, Return Connectedness, Asset Managers, Stock Market, Currency Market, Emerging Economy, Developed Economy.
    JEL: C58 F3 G1 G15
    Date: 2023–08–23
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118654&r=pay
  13. By: Pietro Saggese; Esther Segalla; Michael Sigmund; Burkhard Raunig; Felix Zangerl; Bernhard Haslhofer
    Abstract: Entities like centralized cryptocurrency exchanges fall under the business category of virtual asset service providers (VASPs). As any other enterprise, they can become insolvent. VASPs enable the exchange, custody, and transfer of cryptoassets organized in wallets across distributed ledger technologies (DLTs). Despite the public availability of DLT transactions, the cryptoasset holdings of VASPs are not yet subject to systematic auditing procedures. In this paper, we propose an approach to assess the solvency of a VASP by cross-referencing data from three distinct sources: cryptoasset wallets, balance sheets from the commercial register, and data from supervisory entities. We investigate 24 VASPs registered with the Financial Market Authority in Austria and provide regulatory data insights such as who are the customers and where do they come from. Their yearly incoming and outgoing transaction volume amount to 2 billion EUR for around 1.8 million users. We describe what financial services they provide and find that they are most similar to traditional intermediaries such as brokers, money exchanges, and funds, rather than banks. Next, we empirically measure DLT transaction flows of four VASPs and compare their cryptoasset holdings to balance sheet entries. Data are consistent for two VASPs only. This enables us to identify gaps in the data collection and propose strategies to address them. We remark that any entity in charge of auditing requires proof that a VASP actually controls the funds associated with its on-chain wallets. It is also important to report fiat and cryptoasset and liability positions broken down by asset types at a reasonable frequency.
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2309.16408&r=pay
  14. By: Salomé Baslandze; Jeremy Greenwood; Ricardo Marto
    Abstract: The last decades have seen large improvements in digital advertising technology that allowed firms to better target specific consumer tastes. This research studies the relationship among digital advertising, the rise of varieties, and economic welfare. We develop a model of advertising and varieties where firms choose the intensity of digital ads directed at specific consumers as well as traditional ads that are undirected. The calibrated model shows that improvements in digital advertising have driven the rise in varieties over time. Empirical evidence is presented using detailed micro data on firms' products and advertising choices for the 1995–2015 period. Causal analysis using exogenous variation in consumers' differential access to the internet supports the suggested mechanism.
    Keywords: digital (directed) advertising; traditional (undirected) advertising; specialization; targeting; internet; varieties; welfare
    JEL: E13 L15 I31 M37 O14 O31
    Date: 2023–09–28
    URL: http://d.repec.org/n?u=RePEc:fip:fedawp:96958&r=pay
  15. By: OECD
    Abstract: Platform cooperatives refer to cooperatives that are directly owned and managed by their members and that use websites and/or mobile apps to sell goods and/or services. They have emerged in large part as alternatives to digital labour platforms to promote better working conditions with evidence of significant growth in recent years.This paper provides an overview of employment in platform cooperatives and offers insights on their distinctive features. In particular, it provides i) insights on working conditions associated with such platforms; ii) an overview on the challenges they face in creating jobs as well as scaling up, developing and expanding their activity; and iii) policy recommendations and examples of policy actions that could help policy makers best support them to generate work opportunities and enhance job quality.This paper was produced as part of the OECD Global Action on Promoting Social and Solidarity Economy Ecosystems, funded by the European Union’s Foreign Partnership Instrument.
    Keywords: cooperative, local development, non-profit, social and solidarity economy, social economy, social enterprise, social entrepreneurship, social innovation
    JEL: L33 L31
    Date: 2023–09–30
    URL: http://d.repec.org/n?u=RePEc:oec:cfeaaa:2023/16-en&r=pay
  16. By: Rafael Ramos Tubino (DM2L - Data Mining and Machine Learning - LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, UCBL - Université Claude Bernard Lyon 1 - Université de Lyon); Rémy Cazabet (DM2L - Data Mining and Machine Learning - LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, IXXI - Institut Rhône-Alpin des systèmes complexes - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Natkamon Tovanich (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, X - École polytechnique); Céline Robardet (DM2L - Data Mining and Machine Learning - LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées)
    Abstract: We study the real economic activity in the Bitcoin blockchain that involves transactions from/to retail users rather than between organizations such as marketplaces, exchanges, or other services. We first introduce a heuristic method to classify Bitcoin players into three main categories: Frequent Receivers (FR), Neighbors of FR, and Others. We show that most real transactions involve Frequent Receivers, representing a small fraction of the total value exchanged according to the blockchain, but a significant fraction of all payments, raising concerns about the centralization of the Bitcoin ecosystem. We also conduct a weekly pattern analysis of activity, providing insights into the geographical location of Bitcoin users and allowing us to quantify the bias of a well-known dataset for actor identification.
    Keywords: Bitcoin blockchain analysis, Weekly activity patterns
    Date: 2023–09–18
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04188062&r=pay
  17. By: Raza Ali Kazmi; Cyrus Minwalla
    Abstract: An anonymous credential mechanism is a set of protocols that allows users to obtain credentials from an organization and demonstrate ownership of these credentials without compromising users’ privacy. In this work, we construct the first secret-free and quantum-safe credential mechanism. The scheme is secret-free in the sense that an organization does not need to guard a secret key. The scheme is also lightweight in construction. Security of the scheme relies on the ability of the organization to maintain the integrity of a publicly known data structure—namely, a Merkle tree—that utilizes a quantum-safe, partially homomorphic hash function as a foundational primitive. We also construct a simple, quantum-safe, zero-knowledge argument of knowledge of membership in the Merkle tree. Additionally, we explore a concrete instantiation of the scheme and show it to be practically efficient for the core functions of enrollment and verification.
    Keywords: Central bank research; Digital currencies and fintech; Payment clearing and settlement systems
    JEL: E42 G21 O31
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:bca:bocawp:23-50&r=pay
  18. By: Jorge Abad; Galo Nuño Barrau; Carlos Thomas
    Abstract: We analyze the impact of introducing a central bank-issued digital currency (CBDC) on the operational framework of monetary policy and the macroeconomy as a whole. To this end, we develop a New Keynesian model with heterogeneous banks, a frictional interbank market, a central bank with deposit and lending facillities, and household preferences for different liquid assets. The model is calibrated to replicate the main monetary and financial aggregates in the euro area. Our analysis predicts that CBDC adoption implies a roughly equivalent reduction in banks' deposit funding. However, this 'deposit crunch' has a rather small effect on bank lending to the real economy, and hence on aggregate investment and GDP. This result reflects the parallel impact of CBDC on the central bank's operational framework. For relatively moderate CBDC adoption levels, the reduction in deposits is absorbed by an almost one-to-one fall in reserves at the central bank, implying a transition from a 'floor' system –with ample reserves– to a 'corridor' one. For larger CBCD adoption, the loss of bank deposits is compensated by increased recourse to central bank credit, as the corridor system gives way to a 'ceiling' one with scarce reserves.
    Keywords: central bank digital currency, interbank market, search and matching frictions, reserves
    JEL: E42 E44 E52 G21
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:bis:biswps:1126&r=pay
  19. By: Van de Vyver, Mark
    Abstract: This project highlights some tools and techniques relevant to designing a token economy under a rational expectations hypothesis. Six articles are reviewed, these enumerate some conditions for equilibrium pricing of specific effervescent tokens, dampened tokens, breakable tokens, and redeemable tokens. A review of Polkadot parachain token designs indicates differences in the issues and risks addressed by token equilibrium pricing models and those addressed by the designs practiced in the Polkadot ecosystem.
    Keywords: Blockchain, Cryptocurrency, Dynamic equilibrium, Token/coin offering
    JEL: E41 E42 G12
    Date: 2023–08–30
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118476&r=pay
  20. By: Böken, Johannes (University of Warwick and CAGE); Draca, Mirko (University of Warwick and CAGE); Mastrorocco, Nicola (University of Bologna); Ornaghi, Arianna (Hertie School)
    Abstract: Social media has changed the structure of mass communication. In this paper we explore its role in influencing political donations. Using a daily dataset of campaign contributions and Twitter activity for US Members of Congress 2019-2020, we find that attention on Twitter (as measured by likes) is positively correlated with the amount of daily small donations received. However, this is not true for everybody: the impact on campaign donations is highly skewed, indicating very concentrated returns to attention that are in line with a 'winner-takes-all' market. Our results are confirmed in a geography-based causal design linking member's donations across states.
    Keywords: Social Media, Twitter, Campaign Contributions JEL Classification: D72, P00
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:cge:wacage:681&r=pay
  21. By: Mr. Shafik Hebous; Nate Vernon
    Abstract: With increasing awareness of past environmental damage from crypto mining, questions arise as to how persistent the problem will be in the future and how taxation can help in addressing this negative externality. We estimate that the global demand for electricity by crypto miners reached that of Australia or Spain, resulting in 0.33% of global CO2 emissions in 2022. Projections suggest sustained future electricity demand and indicate further increases in CO2 emissions if crypto prices significantly increase and the energy efficiency of mining hardware is low. To address global warming, we estimate the corrective excise on the electricity used by crypto miners to be USD 0.045 per kWh, on average. Considering also air pollution costs raises the tax to USD 0.087 per kWh. Country-specific estimates vary depending on their electricity sources.
    Keywords: Corrective Taxes; Carbon Tax; Mitigation Policy; Crypto Assets; Crypto Mining; Bitcoin
    Date: 2023–09–15
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/194&r=pay
  22. By: Chongwoo Choe (Department of Economics, Monash University); Noriaki Matsushima (Institute of Social and Economic Research, Osaka University); Shiva Shekhar (The corresponding author. Tilburg School of Economics and Management (TiSEM), CESifo Research affiliate)
    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
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:mos:moswps:2023-14&r=pay
  23. By: Sugata Marjit; Kausik Gupta
    Abstract: The paper attempts to examine the macroeconomic implications of the coexistence of crypto currency with legal tender money in the context of a democratic country such as India. The paper shows that macroeconomic implications of crypto currency can be captured by a simple extension of the IS-LM model. The main potential political consequence emerges due to difficulty in implementation of monetary policy, especially prior to elections. The paper shows that if the share of crypto currency out of total money supply is high it is bound to impact on the efficacy of monetary policy. .The paper also examines the practical difficulties of legalizing crypto currency.
    Keywords: block chain, crypto currency, legal tender money, monetary policy
    JEL: E52 E58 E61 E63
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10665&r=pay
  24. By: Xintong Han (Laval University, Faculty of Business Administration, Department of Marketing, 2325 Rue de la Terrasse, Québec, G1V 0A6, Canada); Jan Victor Dee (Concordia University, Department of Economics, 1455 Boulevard de Maisonneuve Ouest, Montreal, H3G 1M8, Canada); Shaojia Wang (Concordia University, Department of Economics, 1455 Boulevard de Maisonneuve Ouest, Montreal, H3G 1M8, Canada)
    Abstract: This paper empirically evaluates the impact of a Government-Initiated Non-Profit E-commerce Platform (GNEP) on specialty agricultural sales, focusing specifically on Pu’er tea in China. Using a difference-in-differences methodology and a comprehensive panel dataset that covers over 90% of local tea farmers, we uncover a marked substitution effect. The implementation of GNEP leads to an average decline of 11.22% in offline household sales, while online sales see an uptick of 16.88%. Further analysis confirms a universal channel shift from offline to online sales, irrespective of both production levels and tea quality. Contrary to expectations, the overall tea sales volume remains largely stable post-launch. Additionally, premium-quality teas experience a 2.42% price boost online, while regular teas show a 0.40% decrease compared to offline prices. Mechanism analysis further indicates that the increase in online sales is driven primarily by the intensive margin instead of the extensive margin. Although the platform does not significantly expand the number of farmers engaging in online sales, it offers a cost-effective avenue for diversifying product offerings and achieving higher prices for premium-quality products. Our study illuminates the transformative role of e-commerce platforms in rural economic development and provides essential insights for policymakers and practitioners.
    Keywords: government-initiated non-profit e-commerce platform (GNEP); difference-in-differences (DiD); tea sales; online channels
    JEL: L81 M31 Q13
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:net:wpaper:2303&r=pay
  25. By: Natkamon Tovanich (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique); Rémy Cazabet (DM2L - Data Mining and Machine Learning - LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, LIRIS - Laboratoire d'InfoRmatique en Image et Systèmes d'information - UL2 - Université Lumière - Lyon 2 - ECL - École Centrale de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - CNRS - Centre National de la Recherche Scientifique, IXXI - Institut Rhône-Alpin des systèmes complexes - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes)
    Abstract: Deanonymization is one of the major research challenges in the Bitcoin blockchain, as entities are pseudonymous and cannot be identified from the on-chain data. Various approaches exist to identify multiple addresses of the same entity, i.e., address clustering. But it is known that these approaches tend to find several clusters for the same actor. In this work, we propose to assign a fingerprint to entities based on the dynamic graph of the taint flow of money originating from them, with the idea that we could identify multiple clusters of addresses belonging to the same entity as having similar fingerprints. We experiment with different configurations to generate substructure patterns from taint flows before embedding them using representation learning models. To evaluate our method, we train classification models to identify entities from their fingerprints. Experiments show that our approach can accurately classify entities on three datasets. We compare different fingerprint strategies and show that including the temporality of transactions improves classification accuracy and that following the flow for too long impairs performance. Our work demonstrates that out-flow fingerprinting is a valid approach for recognizing multiple clusters of the same entity.
    Keywords: Bitcoin, Money flow, Taint analysis, Graph embedding
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04208864&r=pay
  26. By: Eric A. Hanushek; Lavinia Kinne; Pietro Sancassani; Ludger Woessmann
    Abstract: Decisions to invest in human capital depend on people’s time preferences. We show that differences in patience are closely related to substantial subnational differences in educational achievement, leading to new perspectives on longstanding within-country disparities. We use social-media data – Facebook interests – to construct novel regional measures of patience within Italy and the United States. Patience is strongly positively associated with student achievement in both countries, accounting for two-thirds of the achievement variation across Italian regions and one-third across U.S. states. Results also hold for six other countries with more limited regional achievement data.
    Keywords: patience, student achievement, regions, social media, Facebook
    JEL: I21 Z10
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10660&r=pay
  27. By: Wang, Chien-Chiang; Li, Yiting
    Abstract: This paper studies credit using a search-theoretic model with anonymity in which traders cannot reveal their true identities to the public but can create transaction accounts as identities to borrow and store their trade histories. A transaction account that is used to borrow would be excluded from future transactions as a punishment when default occurs, but a defaulter can create a new account to trade again. We show that increasing-credit-limit schemes connected to account ages, as captured by accumulated repayment records, emerges endogenously to ensure debt repayment. We extend the model to consider a situation in which a trader may create multiple accounts to borrow and default intentionally. Requiring that proof of a deterrence activity is provided when an account is created can help deter multi-account fraud and enhance the lifetime value of traders.
    Keywords: credit, digital currencies, search, imperfect information
    JEL: D83 E40 E51
    Date: 2023–03–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118480&r=pay
  28. By: OECD
    Abstract: This policy paper explores the contribution of platform cooperatives to local development as an alternative model to conventional digital platforms. It considers their role in reducing potential negative effects of the digital transition on local communities and places, as well as the new opportunities they present to provide greater quality of life for local residents. The paper introduces the main features of platform cooperatives, explores their contributions to local development and identifies the challenges to their emergence and expansion. It then provides policy orientations that could support the development of platform cooperatives and enhance their contributions to local development.This paper was produced as part of the OECD Global Action on Promoting Social and Solidarity Economy Ecosystems, funded by the European Union’s Foreign Partnership Instrument.
    Keywords: cooperative, local development, non-profit, social and solidarity economy, social economy, social enterprise, social entrepreneurship, social innovation
    JEL: L33 L31
    Date: 2023–10–04
    URL: http://d.repec.org/n?u=RePEc:oec:cfeaaa:2023/14-en&r=pay
  29. By: Sumaiya Binta Islam; Laboni Mondal
    Abstract: Remittances have become one of the driving forces of development for countries all over the world, especially in lower-middle-income nations. This paper empirically investigates the association between remittance flows and financial development in 4 lower-middle-income countries of Latin America. By using a panel data set from 1996 to 2019, the study revealed that remittances and financial development are positively associated in these countries. The study also discovered that foreign direct investment and inflation were positively correlated with financial development while trade openness had a negative association with financial development. Therefore, policymakers of these countries should implement and formulate such policies so that migrant workers would have the incentives to send money through formal channels, which will augment the effect of remittances on the recipient country.
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2309.08855&r=pay
  30. By: syrup, soul
    Abstract: Credit scores allow individuals and businesses to be able to take loans, many of which stimulate the economy, allowing ideas to be formed into products and services, and giving the opportunity for people to own their own place of residence. The hypothesis of this study was that IQ scores and financial literacy scores are positively correlated with credit scores, and that higher financial literacy confidence scores coupled with low financial literacy scores are negatively correlated to credit scores, thus allowing the possibility to create an algorithm to predict credit scores of people who do not have credit scores. A survey was used to collect the data in this study, specifically IQ scores, financial literacy scores, financial literacy confidence scores, and credit scores. 96 participants, aged 18 and over, were recruited through opportunistic sampling and consented to take part in the survey. Analysis consisted of correlation charts, heatmaps, scatter plots, multivariable regression, to find patterns in the data. The results show that the combination of IQ scores, financial literacy scores, and financial literacy self-confidence scores, is strongly positively correlated to credit scores. A multivariable regression model was created, with an accuracy of 74.19%. An Artificial Neural Network was created, with an accuracy of 65.51%.
    Date: 2023–09–29
    URL: http://d.repec.org/n?u=RePEc:osf:socarx:g4vjt&r=pay
  31. By: Imène Berguiga; Philippe Adair
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:eru:erudwp:wp23-06&r=pay
  32. By: Christian Lessmann; Ali Sina Önder
    Abstract: We analyze whether the social media popularity of Twitter star scientists, who were identified by Science in a 2014 report, pays off in terms of an increased number of citations. To establish a causal relationship, we use the COVID-19 global pandemic as a quasi-natural experiment exogenously increasing public attention and the demand for expertise. Using Twitter science stars’ and their coauthors’ publications on COVID related topics prior to the break out of the pandemic, we run a difference-in-differences analysis for annual incoming citations of the two groups. We find that the Twitter star status added about 1.07 extra citations following the breakout of COVID-19 per year per article, corresponding to about 70% of the already existing citation gap between Twitter science stars and their coauthors. Moreover, we also document that the publication of the Science list on Twitter science stars in 2014 per se caused an increase in citations, i.e. the publication of the supposed celebrity status by Science already benefited the stars, which meant 1.06 more citations per year per article compared to their coauthors. Treatment based on scientists’ Kardashian indexes yields no robust effects, implying that unjustified social media popularity does not pay off in terms of citations.
    Keywords: social media, expertise, Kardashian index, citations, Covid
    JEL: J24 O33
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10661&r=pay

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