|
on Payment Systems and Financial Technology |
|
Issue of 2023‒12‒18
twenty-one papers chosen by |
| By: | Hugo Schnoering; Michalis Vazirgiannis |
| Abstract: | This research delves into the intricacies of Bitcoin, a decentralized peer-to-peer network, and its associated blockchain, which records all transactions since its inception. While this ensures integrity and transparency, the transparent nature of Bitcoin potentially compromises users' privacy rights. To address this concern, users have adopted CoinJoin, a method that amalgamates multiple transaction intents into a single, larger transaction to bolster transactional privacy. This process complicates individual transaction tracing and disrupts many established blockchain analysis heuristics. Despite its significance, limited research has been conducted on identifying CoinJoin transactions. Particularly noteworthy are varied CoinJoin implementations such as JoinMarket, Wasabi, and Whirlpool, each presenting distinct challenges due to their unique transaction structures. This study delves deeply into the open-source implementations of these protocols, aiming to develop refined heuristics for identifying their transactions on the blockchain. Our exhaustive analysis covers transactions up to block 760, 000, offering a comprehensive insight into CoinJoin transactions and their implications for Bitcoin blockchain analysis. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.12491&r=pay |
| By: | Asongu, Simplice; Odhiambo, Nicholas |
| Abstract: | This study focuses on linkages between bank accounts and supply-side mobile money drivers for mobile money innovations. It seeks to understand how bank accounts can be complemented with mobile subscription and mobile connectivity dynamics (i.e., mobile connectivity coverage and mobile connectivity performance) for mobile money innovations. The empirical evidence is based on quadratic Tobit regressions. First, there are positive net relationships from the roles of mobile subscriptions and mobile connectivity coverage in modulating bank accounts for mobile money innovations. Second, mobile connectivity performance does not significantly modulate bank accounts for mobile money innovations. Third, given the negative marginal relationships associated with the positive net relationships, thresholds for complementary policies in mobile money supply factors that are worthwhile for bank accounts to stimulate mobile money innovations are provided. The thresholds are: (i) mobile subscription rates of 87.50%, 80.50%, and 98.50% of the adult population for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money, and (ii) mobile connectivity coverages of 64.00%, 69.33%, and 78.00% for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money. |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| JEL: | D1 D14 D31 D60 O30 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119058&r=pay |
| By: | Syngjoo Choi; Bongseob Kim; Young-Sik Kim; Ohik Kwon |
| Abstract: | Privacy protection is among the key features to consider in the design of central bank digital currency (CBDC). Using a nationally representative sample of over 3, 500 participants, we conduct a randomized online survey experiment to examine how the willingness to use CBDC as a means of payment varies with the degree of privacy protection and information provision on the privacy benefits of using CBDC. We find that both factors significantly increase participants' willingness to use CBDC by up to 60% when purchasing privacy-sensitive products. Our findings provide useful insights regarding the design and the public's adoption of CBDC. |
| Keywords: | central bank digital currency (CBDC), privacy, randomized online survey experiment |
| JEL: | E40 E50 C90 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1147&r=pay |
| By: | Darren Aiello; Scott R. Baker; Tetyana Balyuk; Marco Di Maggio; Mark J. Johnson; Jason D. Kotter |
| Abstract: | We provide a first look into the drivers of household cryptocurrency investing. Analyzing consumer transaction data for millions of U.S. households, we find that, except for high income early adopters, cryptocurrency investors resemble the general population. These investors span all income levels, with most dollars coming from high-income individuals, similar to equity investors. High past crypto returns and personal income shocks lead to increased cryptocurrency investments. Higher household-level inflation expectations also correlate with greater crypto investments, aligning with hedging motives. For most U.S. households, cryptocurrencies are treated like traditional assets. |
| JEL: | E31 E42 G11 G23 G51 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31856&r=pay |
| By: | Sawada, Yasuyuki (University of Tokyo); Elhan-Kayalar, Yesim (Asian Development Bank); Shum, Matthew (California Institute of Technology); Xu, Daniel Yi (Duke University) |
| Abstract: | Micro, small, and medium-sized enterprises (MSMEs) are recognized as crucial drivers of economic development, particularly in low- and middle-income countries. The advent of digital platforms, characterized by economies of scale and significant cross-network externalities in two-sided markets, has brought about unprecedented changes to people’s daily lives, employment, businesses, and markets. These transformations have unlocked opportunities for MSMEs. In this paper, we analyze the dynamics of e-commerce and how they unfolded during the coronavirus disease (COVID-19) pandemic, using a unique, composite dataset focusing on GoFood merchants in Indonesia. This paper makes a notable contribution by expanding the analysis of the platform efficiency contributions into static efficiency and dynamic efficiency perspectives. Our analysis reveals three key findings. First, online platforms like Gojek offered a novel form of social safety nets for MSMEs. Second, as the COVID-19 pandemic intensified, we observed market congestion externalities and cannibalization tendencies. Third, women- and men-owned businesses opted for different crisis-mitigation and coping strategies. Vulnerable microenterprises, often owned by women merchants with limited support networks and business assets, were disproportionately affected by the pandemic. Overall, our study demonstrates that the rapid acceleration of digital transformation during the COVID-19 pandemic presents unique research opportunities on distributive justice, external effects, and scale economies, as well as related competition policies |
| Keywords: | digital platform; distributive justice; e-commerce; platform economies; MSMEs; scale economies; two-sided network externalities; competition policy; COVID-19 pandemic |
| JEL: | D22 D63 L25 L26 |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0703&r=pay |
| By: | Asongu, Simplice; Odhiambo, Nicholas |
| Abstract: | Compared to other regions of the world, the potential for information technology penetration in sub-Saharan Africa (SSA) is very high. Unfortunately, productivity levels in the region are also very low. This study investigates the importance of information technology in influencing the effect of foreign direct investment (FDI) on total factor productivity (TFP) dynamics. The focus is on 25 countries in SSA. Information technology is measured with mobile phone penetration and internet penetration, while the engaged TFP productivity dynamics are TFP, real TFP, welfare TFP, and real welfare TFP. The empirical evidence is based on the Generalised Method of Moments. The findings show that, with the exception of regressions pertaining to real TFP growth for which the estimations do not pass post-estimation diagnostic tests, it is apparent that information technology (i.e. mobile phone penetration and internet penetration) modulate FDI to positively influence TFP dynamics (i.e. TFP, welfare TFP, and welfare real TFP). Policy and theoretical implications are discussed. |
| Keywords: | Productivity; Foreign Investment; Information Technology; Sub-Saharan Africa |
| JEL: | E23 F21 F30 L96 O55 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119065&r=pay |
| By: | Asongu, Simplice; Odhiambo, Nicholas |
| Abstract: | The study assesses the how information sharing by means of mobile phones affects banking system efficiency in Africa with particular emphasis on income levels (Middle income versus Low income countries) and legal origins (English Common law versus French Civil law countries). The focus is on 53 African countries with data for the period 1996-2019 and the empirical evidence is based in Quantile regressions which enable the study to assess the nexus throughout the conditional distribution of banking system efficiency. The following findings are established: (i) mobile phone penetration promotes banking system efficiency in the 25th quantile and the median of banking system efficiency in low income countries while for middle income countries; it is significant exclusively in the bottom quantile (i.e. 10th quantile). (ii) With the exception of the highest (i.e. 90th) quantile in which the effect of the mobile phone is not significant in English Common law countries, the impact is significant throughout the conditional distribution of banking system efficiency in Common law countries. (iii) As for French Civil law countries, the nexus is only significant in the median and highest (i.e. 90th) quantile of the conditional distribution of banking system efficiency. Policy implications are discussed. |
| Keywords: | Allocation efficiency; Information asymmetry; Mobile phones |
| JEL: | G20 G29 L96 O40 O55 |
| Date: | 2022–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119057&r=pay |
| By: | Lucas Amherd; Sheng-Nan Li; Claudio J. Tessone |
| Abstract: | An important virtue of distributed ledger technologies is their acclaimed higher level of decentralisation compared to traditional financial systems. Empirical literature, however, suggests that many systems tend towards centralisation as well. This study expands the current literature by offering a first-time, data-driven analysis of the degree of decentralisation of the platform Hedera Hashgraph, a public permissioned distributed ledger technology, employing data directly fetched from a network node. The results show a considerably higher amount of released supply compared to the release schedule and a growing number of daily active accounts. Also, Hedera Hashgraph exhibits a high centralisation of wealth and a shrinking core that acts as an intermediary in transactions for the rest of the network. However, the Nakamoto index and Theil index point to recent progress towards a more decentralised network. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.06865&r=pay |
| By: | Mohammadreza Mahmoudi |
| Abstract: | This study investigates the influence of monetary policy and monetary policy uncertainties on Bitcoin returns, utilizing monthly data of BTC, and MPU from July 2010 to August 2023, and employing the Markov Switching Means VAR (MSM-VAR) method. The findings reveal that Bitcoin returns can be categorized into two distinct regimes: 1) regime 1 with low volatility, and 2) regime 2 with high volatility. In both regimes, an increase in MPU leads to a decline in Bitcoin returns: -0.028 in regime 1 and -0.44 in regime 2. This indicates that monetary policy uncertainty exerts a negative influence on Bitcoin returns during both downturns and upswings. Furthermore, the study explores Bitcoin's sensitivity to Federal Open Market Committee (FOMC) decisions. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10739&r=pay |
| By: | Aron Culotta; Ginger Zhe Jin; Yidan Sun; Liad Wagman |
| Abstract: | Consumer reviews, especially those expressing concerns of product quality, are crucial for the credibility of online platforms. However, reviews that criticize a product or service may also dissuade buyers from using the platform, creating an incentive to blur the visibility of critical reviews. Using Airbnb and official crime data in five major US cities, we find that both reviews and self experiences concerning the safety of a listing's vicinity decrease guest bookings on the platform. Counterfactual simulations suggest that a complete removal of vicinity safety reviews (VSR) would hurt guests but increase revenues from reservations on Airbnb, with positive sorting towards listings formerly with VSR. Conversely, incorporating VSR in a listing's overall ratings or highlighting VSR could generate opposite effects. Either way, the interests of consumers are not always aligned with the interests of a revenue-centric platform. Because VSR are more closely correlated with official crime statistics in low-income and minority neighborhoods, our findings suggest that suppressing or highlighting VSR would have different effects on different neighborhoods. |
| JEL: | D83 L15 R3 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31855&r=pay |
| By: | Cedric Durand (University of Geneva); Céline Baud (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article explores the metamorphosis of profit-making and profit uses in the context of retailing's digital transition. To assess the qualitative mutations of the sector, it is not enough to focus on technological changes since the unequal operational development of firms is also the outcome of managerial strategies and financial policies. This research analyses them from an economic and accounting perspective. The contribution is twofold. First, at the conceptual level, it proposes an original combinatory outlook on value creation and value appropriation to account for the diversity of profit trajectories in the context of retail digitalization. Second, at the empirical level, it gathers essential information concerning the mutation of the sector based on a comparative analysis of the strategies and trajectories of Walmart—the industry leader—and two of its main challengers since the mid-nineties: the main historical rival, Carrefour, and the new entrant, Amazon. Stylized facts about their respective financial trajectories and a description of their engagement with digitalization enable the identification and the interpretation of their distinct dynamics. Beyond the retail sector, this article brings fresh insights to the wider literature on intellectual monopoly by questioning the nature of investment and the transformation of cost structure in the digital age. |
| Keywords: | Retailing, digitalization, profits, accounting, intellectual monopoly |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04262663&r=pay |
| By: | Marc J. Pfeiffer |
| Abstract: | The ethical imperative for technology should be first, do no harm. But digital innovations like AI and social media increasingly enable societal harms, from bias to misinformation. As these technologies grow ubiquitous, we need solutions to address unintended consequences. This report proposes a model to incentivize developers to prevent foreseeable algorithmic harms. It does this by expanding negligence and product liability laws. Digital product developers would be incentivized to mitigate potential algorithmic risks before deployment to protect themselves and investors. Standards and penalties would be set proportional to harm. Insurers would require harm mitigation during development in order to obtain coverage. This shifts tech ethics from move fast and break things to first, do no harm. Details would need careful refinement between stakeholders to enact reasonable guardrails without stifling innovation. Policy and harm prevention frameworks would likely evolve over time. Similar accountability schemes have helped address workplace, environmental, and product safety. Introducing algorithmic harm negligence liability would acknowledge the real societal costs of unethical tech. The timing is right for reform. This proposal provides a model to steer the digital revolution toward human rights and dignity. Harm prevention must be prioritized over reckless growth. Vigorous liability policies are essential to stop technologists from breaking things |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10861&r=pay |
| By: | Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | This study examines how the starting of business by females can be promoted by assessing critical levels of microfinance institutions (MFIs) penetration that policy makers must endeavour to maintain and/or attain in order for female unemployment not to represent a constraint in the doing of business. A constraint in doing business is understood in terms of the procedure that a woman has to go through in order to start a business. The focus of the study is on 44 countries in Sub-Saharan Africa (SSA) for the period 2004-2018, while the empirical evidence is based on interactive quantile regressions. The following findings are established. The validity of tested hypotheses is exclusively apparent in the lowest and highest quantiles of the conditional distribution of the procedure women have to go through to start a business. MFI penetration levels needed to reverse the unfavorable incidence of female unemployment in doing business are provided. These are minimum MFIs penetration thresholds that are required in order for female unemployment not to negatively affect the procedure that a woman should go through to start a business. The study complements the extant literature by assessing critical microfinance penetration levels that are needed to promote female doing of business, contingent on existing levels of female doing of business. |
| Keywords: | Africa; Microfinance; Gender; Inclusive development |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:23/014&r=pay |
| By: | Reimer, Julia; Doganoglu, Toker |
| JEL: | D42 L12 L13 L40 L81 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277683&r=pay |
| By: | Qin Wang; Guangsheng Yu; Shiping Chen |
| Abstract: | In this paper, we explore the aftermath of the Silicon Valley Bank (SVB) collapse, with a particular focus on its impact on crypto markets. We conduct a multi-dimensional investigation, which includes a factual summary, analysis of user sentiment, and examination of market performance. Based on such efforts, we uncover a somewhat counterintuitive finding: the SVB collapse did not lead to the destruction of cryptocurrencies; instead, they displayed resilience. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10720&r=pay |
| By: | Ravi Kashyap |
| Abstract: | We consider the problem of being a cross-chain wealth management platform with deposits, redemptions and investment assets across multiple networks. We discuss the need for blockchain bridges to facilitates fund flows across platforms. We point out several issues with existing bridges. We develop an algorithm - tailored to overcome current constraints - that dynamically changes the utilization of bridge capacities and hence the amounts to be transferred across networks. We illustrate several scenarios using numerical simulations. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10717&r=pay |
| By: | Adrien Raymond (UP1 EMS - Université Paris 1 Panthéon-Sorbonne - École de Management de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne); Alexandre Steyer (UP1 EMS - Université Paris 1 Panthéon-Sorbonne - École de Management de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | Le but de cette recherche est de démontrer l'existence de l'effet de simple exposition sur le réseau social Twitter. Son existence est cependant modérée par un effet de réactance. Les résultats montrés dans cette étude apportent une vision contre-intuitive du modèle d'exposition simple. Ainsi plus l'utilisateur est exposé à un nombre de tweets positifs par jours, plus l'effet d'exposition diminue, au point de devenir négatif. La production d'informations seule ne suffit pas pour influencer les sentiments de l'utilisateurs exposé. Cette théorie valide ce que les praticiens appellent l'effet boomerang. Pour réussir au mieux sa prise de parole en ligne, un utilisateur doit privilégier un volume important de publication (ex : tweets) en dosant des éléments de langages positifs et négatif. |
| Keywords: | sentiments, effet de réactance, twitter, big data, réseaux sociaux mere exposure effect, feelings, reactance effect, social networks, effet de simple exposition influence sentiments effet de réactance twitter big data réseaux sociaux mere exposure effect influence feelings reactance effect twitter big data social networks, effet de simple exposition, influence |
| Date: | 2022–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04262823&r=pay |
| By: | Bottasso, Anna; Robbiano, Simone; Marocco, Paolo |
| Abstract: | We analyze a sample of consumer-electronics products sold by the US NewEgg online-retailer to study the impact of Price Matching Guarantees (PMGs) policies on prices. By applying aDifference-in-Differences approach, we find that prices of the policy-adopting retailer increase by 4.7% during the policy validity period and up to five days after the treatment, while those of the major non-adopting competitor are not affected. Results are mainly driven by highlyrated, visible and expensive products, while the policy does not affect low-rated, less visible and cheaper ones. Overall findings are consistent with the hypothesis that PMGs act as price discrimination tools. |
| Keywords: | Price Matching Guarantees, Online Retailing, User Generated Contents, Difference-in-Differences, Price Discrimination, Collusion, Signalling |
| JEL: | L11 L13 L15 L81 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1351&r=pay |
| By: | Magin, Jana; Neyer, Ulrike; Stempel, Daniel |
| JEL: | E52 E42 E58 E41 E51 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277656&r=pay |
| By: | Elena Pojman (Max Planck Institute for Demographic Research, Rostock, Germany); Duke Elijah Mwedzi (Max Planck Institute for Demographic Research, Rostock, Germany); Orlando Olaya Bucaro (Max Planck Institute for Demographic Research, Rostock, Germany); Stephanie Zhang (Max Planck Institute for Demographic Research, Rostock, Germany); Michael Chong; Monica Alexander (Max Planck Institute for Demographic Research, Rostock, Germany); Diego Alburez-Gutierrez (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | Demographic studies consistently find a mortality advantage among migrants, but a lack of longitudinal data tracking individuals across national borders has limited the study of historical international migration. To address this gap, we use the crowd-sourced online genealogical database Familinx to estimate the migrant mortality advantage for migrants from the United Kingdom and Ireland between 1750 and 1910. We compare age at death for non-migrants and migrants to Canada, the United States, South Africa, New Zealand, and Australia using mixed-effects regression models that account for unobserved factors shared between siblings. Results suggest an overall expected migrant advantage of 5.9 years, 95% CI [5.7, 6.2] even after accounting for between-family variation, with migrants estimated to live an additional 2.6 [1.1, 4.0] to 8.7 [6.3, 11.2] years depending on the country of destination. This study contributes to the understanding of the migrant mortality advantage in a historical context and shows the potential for online genealogies to contribute to demographic research. Keywords: crowd-sourced genealogies, migrant mortality advantage, United Kingdom, Ireland, sibling effects |
| Keywords: | Australia, Canada, New Zealand, United Kingdom, USA, genealogy, migration, mortality, siblings |
| JEL: | J1 Z0 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2023-050&r=pay |
| By: | Schiersch, Alexander; Duso, Tomaso |
| JEL: | D24 D25 L60 L80 O14 O33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277571&r=pay |