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on Payment Systems and Financial Technology |
| By: | Wencun Wang (Lyceum of the Philippines University); Di Zhao (Glink Artificial Intelligence Technology); Can Huang (China Citic Bank Corporation Limited); Jun Yao (Lyceum of the Philippines University) |
| Abstract: | This study aims to enhance the efficiency of service transaction management in the contemporary financial industry. The approach involves three main steps. First, a Hyperledger Fabric blockchain network is established, and smart contracts are deployed to ensure the tamper-proof nature and transparency of transaction data. Second, a hierarchical clustering algorithm (HCA) is applied to thoroughly analyze the transaction data, uncovering potential patterns and structures. Finally, a performance evaluation experiment of the model is conducted, wherein a variety of financial transaction data are collected, comprehensively processed, and analyzed. The research findings demonstrate that integrating blockchain technology with the hierarchical clustering method significantly boosts transaction management efficiency and data security. Specifically, this integrated approach improves transaction processing speed by more than 30% compared to traditional methods and shows marked efficiency improvements across various transaction volumes. Blockchain technology ensures data integrity, preventing tampering, while the detection rate of abnormal transactions increases to 99%, greatly enhancing system security. These results underscore the practical application value of the fusion method in financial service transaction management. This study not only promotes further development and innovation in financial service transaction management but also provides more efficient and secure solutions for the fintech sector. |
| Keywords: | Blockchain hierarchical clustering financial services transaction management, Blockchain, hierarchical clustering, financial services, transaction management |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04663079 |
| By: | Fabien Clive Ntonga Efoua (FSEG, UYII-Soa - Faculté de Sciences Économiques et de Gestion - Yaoundé II, CEDIMES - CEDIMES - Centre d'Etudes sur le Développement International et les Mouvements Economiques et Sociaux) |
| Abstract: | Based on the observation that there is chaos in the crypto-world and the need to regulate this ecosystem, this paper proposes: (i) to revisit the genesis and draw up a state of the art concerning the different forms of cryptocurrencies, (ii) suggest a typology in order to (iii) review the directions that could be taken by their development. From an academic view, in addition to Economics, this could be of interest to many other disciplinary fields, particularly Computer science, Law and History. Methodologically, this paper is based on a historical and dialectical approach. That allows us to distinguish two main types of cryptocurrencies: those which are "decentralised" and those which are "sovereign". This common categorisation can be refined according to some specific criteria, in particular: the nature of the digital flow, the consensus algorithm, the issuer and the core technology. Thus, we can differentiate seven sub-categories of cryptocurrencies: the "primitive" digital currencies, the Bitcoin, the Altcoins, the Stablecoins and what we call the Iotcoins, on the one hand; then the Central Bank Digital Currencies (CBDC) and what we call the National Digital Currencies (NDC) on the other. From our view, given the volatility of the decentralised cryptocurrencies, the security aspects and their propensity to finance the shadow economy, their coexistence with the sovereign cryptocurrencies will undoubtedly arise. Concerning particularly the (future) Govcoins, the CBDC seem to have more support than the NDC, given the everlasting issue of temporal inconsistency. |
| Abstract: | Partant du constat d'un chaos généralisé dans la cryptosphère et de la nécessité d'une régulation de cet écosystème, cet article propose : (i) de revisiter la genèse et dresser un état de l'art relatif aux différentes formes de cryptomonnaies, (ii) d'en proposer une typologie et (iii) de conjecturer sur quelques tendances qui devraient marquer leur processus évolutif ; se situant de fait à un carrefour entre l'Economie, l'Informatique, le Droit et l'Histoire. La méthodologie s'appuie sur une approche dialectique. Cette dernière permet de distinguer deux principaux types de cryptomonnaies : celles dites « décentralisées » et celles dites « souveraines ». Cette catégorisation peut être affinée selon des critères plus spécifiques, notamment : la nature du flux digital, l'algorithme de consensus, l'émetteur et la technologie de base (avec ou sans blockchain). Nous parvenons ainsi à différencier sept sous-catégories de cryptomonnaies : les monnaies numériques « primitives », le Bitcoin, les Altcoins, les Stablecoins, et ce que nous appelons les Iotcoins d'une part ; puis les Monnaies Numériques de Banque Centrale (MNBC) et ce que nous appelons les Monnaies Numériques Nationales (MNN) d'autre part. Selon notre analyse, compte tenu de la volatilité des cryptomonnaies décentralisées, des risques de sécurité qu'elles posent et de leur propension à participer au financement de l'économie souterraine, la question de leur cohabitation avec les cryptomonnaies souveraines se posera inévitablement. Par ailleurs, en ce qui concerne les Govcoins, les MNBC semblent susciter davantage d'adhésion que les MNN, eu égard à la sempiternelle question de l'incohérence temporelle. |
| Keywords: | Digital currencies, Bitcoin, Altcoins, Stablecoins, Govcoins, Monnaies numériques, Débats et Tendances Monnaies numériques, Monnaies Numériques de Banque Centrale |
| Date: | 2024–07–15 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04660619 |
| By: | Kazutoshi Sugimura (Bank of Japan); Masaki Bessho (Bank of Japan) |
| Abstract: | Recently, initiatives related to "deposit tokenization" have begun to expand globally. With the emergence of stablecoins, these initiatives seem to seek an extension of functionality in payment and settlement systems by applying new technologies, such as distributed ledger technology (DLT), to bank deposits as a traditional means of payment. The main reason such initiatives prefer leveraging deposit money is said to be its affinity with the two-tier monetary system and possibly with existing laws or regulations. However, there remain some issues that require further clarification on how payments with tokenized deposits are categorized in the private law system, and how smart contracts provide implications for non-functional requirements and legal certainty. Multifaceted discussions on deposit tokenization will therefore continue to be necessary, with an eye toward future payment and settlement systems. |
| Date: | 2024–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:boj:bojrev:rev24e09 |
| By: | Villarino, Resti Tito (Cebu Technological University); Villarino, Maureen Lorence |
| Abstract: | Background: Online lending applications (OLAs) are rapidly gaining traction in the Philippines, offering previously unbanked individuals access to credit. However, this burgeoning sector is now under scrutiny due to numerous allegations of predatory practices, harassment, and even public shaming, raising significant concerns. Objective: This integrated review critically examines the landscape of OLAs in the Philippines, focusing on user experiences, regulatory constraints, and considerations related to financial equity and consumer protection. Methods: The authors followed Whittemore and Knafl's (2005) integrative review methodology, analyzing app ratings and reviews for 40 OLAs listed in the Google Play Store from January 1, 2024, to July 31, 2024. Cross-referencing was performed using the Securities and Exchange Commission (SEC) registration data. The analysis was conducted using IBM SPSS version 26 and MAXQDA version 2020. Results: The review found that 80% (32 out of 40) of OLAs were moderately rated (3.5-4.4 out of 5.0), suggesting general user satisfaction. However, only 25% (10 out of 40) of these OLAs were registered with the SEC. Critical themes such as high interest rates, hidden charges, and aggressive collection practices were more prevalent among non-registered OLAs. The absence of highly negative ratings (below 2.4) suggests possible rating manipulations. Thematic analysis revealed positive themes like convenience, speed, and accessibility, contrasted by negative themes including predatory practices, lack of transparency, and poor customer service. Conclusion: The OLA landscape in the Philippines is complex, balancing the need for accessible credit with the imperative of stronger regulatory oversight and consumer protection. This review highlights the necessity of enhancing regulatory monitoring and consumer safeguards to ensure financial innovation benefits vulnerable borrowers without exposing them to undue risk. Keywords: consumer protection, digital financial literacy, financial inclusion, fintech regulation, online lending in the Philippines, predatory practices |
| Date: | 2024–08–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:nr456 |
| By: | Menda, Emir |
| Abstract: | This study investigates the relationship between cryptocurrency adoption and stock market capitalization across countries, while controlling for GDP per capita. Using cross-sectional data from 154 countries, we employ ordinary least squares regression to analyze this relationship. The findings reveal a statistically significant positive association between cryptocurrency adoption and stock market capitalization. Specifically, that a one-unit increase in the cryptocurrency adoption score is associated with a 182.614 percentage point increase in stock market capitalization as a percentage of GDP. In addition, GDP per capita shows a significant positive relationship with stock market capitalization, confirming the connection between economic development and financial market depth. These results suggest that cryptocurrency adoption complements traditional financial markets rather than substituting, offering important insights for policymakers, investors, and researchers in understanding the evolving financial landscape. This study contributes to the growing literature on cryptocurrency markets by providing a broader, cross-country perspective on how digital currency growth affects traditional financial markets. Our findings have implications for financial market development, economic policy, and investment strategies in an increasingly digitalized global economy. |
| Keywords: | Cryptocurrency adoption; Stock market capitalization; Cross-country analysis; Financial markets; Economic development |
| JEL: | G00 |
| Date: | 2024–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121792 |
| By: | Xavier Lavayssière; Nicolas Zhang |
| Abstract: | Programmability in payment and settlement has yet to realize its potential to support policy goals such as efficiency, safety, and innovation. This paper proposes a comprehensive framework for understanding and evaluating programmability. It explores two key dimensions: external programmatic access, which is the ability for external participants to access the system data and functions with code, and internal programmatic capabilities, the extent to which internal execution of programs is supported and guaranteed. By developing strategies based on these dimensions, financial institutions, regulators, and related actors can better improve resilience, reduce costs and interoperability, all while managing associated risks. The resulting hybrid systems are coordinated efforts balancing the advantages of permissionless blockchains, such as composability, with regulatory requirements and a wider range of technologies. The paper describes these programmatic models to inform and guide the development of digital finance, bridging policy discussions with technical considerations. |
| Keywords: | Programmability; Tokenization; Automation; Payment; Settlement |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/177 |
| By: | Sulehri, Fiaz Ahmad; Audi, Marc; Ashraf, Muhammad Saleem; Azam, Habiba; Bukhari, Syeda Ambreen Fatima; Ali, Amjad |
| Abstract: | Financial integration is important because it has the potential to enhance economic growth and stability by facilitating cross-border capital flows and reducing financial market fragmentation. This study investigates the influence of FinTech credit and banking regulations on financial integration in both developed and developing countries, spanning the period from 2013 to 2019. We consider financial integration to be the dependent variable, and we select FinTech credit, banking regulations, bank concentration, remittance volumes, state-owned enterprises, and financial development as explanatory variables. The study employs the Generalized Method of Moments (GMM) to estimate the coefficients. The findings indicate that FinTech credit, remittance volumes, and financial development all contribute positively to financial integration. In contrast, banking regulations exhibit an insignificant relationship with financial integration. Moreover, the results indicate that bank concentration and state-owned enterprises act as deterrents to financial integration among nations. The implications of the results suggest that to enhance the level of financial integration, global economies should promote FinTech credit, increase remittance volumes, and foster financial development while concurrently discouraging bank concentration and state-owned enterprises. |
| Keywords: | Financial integration, state own enterprises, financial development, FinTech credit, bank regulations, amount of remittances, bank concentration |
| JEL: | G10 G20 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121776 |
| By: | Erik Brynjolfsson; Avinash Collis; Asad Liaqat; Daley Kutzman; Haritz Garro; Daniel Deisenroth; Nils Wernerfelt |
| Abstract: | Research on the causal effects of online advertising on consumer welfare is limited due to challenges in running large-scale field experiments and tracking effects over extended periods. We analyze a long-running field experiment of online advertising in which a random 0.5% subset of all users are assigned to a group that does not ever see ever ads. We recruit a representative sample of Facebook users in the ads and no-ads groups and estimate their welfare gains from using Facebook using a series of incentive-compatible choice experiments. We find no significant differences in welfare gains from Facebook. Our estimates are relatively precisely estimated reflecting our large sample size (53, 166 participants). Specifically, the minimum detectable difference in median valuations at standard thresholds is $3.18/month compared to a baseline valuation of $31.95/month for giving up access to Facebook. That is, we can reject the hypothesis that the median disutility from advertising exceeds 10% of the median baseline valuation. Our findings suggest that either the disutility of ads for consumers is relatively small, or that there are offsetting benefits, such as helping consumers find products and services of interest. |
| JEL: | D12 D6 K24 M15 M37 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32846 |
| By: | Prabal Roy Chowdhury (Indian Statistical Institute, Delhi) |
| Abstract: | In the presence of individuals who think `categorically', we demonstrate that profit-maximizing social media platforms indulge in identity-based censoring, with nature of bias depending on the efficiency of the other epistemic institutions (EIs) of the society. In general, when the EIs are neither very efficient, nor very inefficient, the optimal strategy involves a mixture of confirmatory and (a minimal amount of) contrarian reporting, with the contrarian elements being used to create a false perception that no news is good news, which in turn allows the platform to camouflage the fact that it is suppressing all but one unwelcome signals. Further, public good implementation is inefficient if and only if the other epistemic institutions are inefficient. |
| Keywords: | social media, confirmation bias, contrarianism, identity-based censoring, categorical thinking |
| JEL: | L82 D91 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:alo:isipdp:24-03 |
| By: | Shan Huang; Yuan Yuan; Yi Ji |
| Abstract: | The diffusion of novel information through social networks is essential for dismantling echo chambers and promoting innovation. Our study examines how two major types of viral channels, specifically Direct Messaging (DM) and Broadcasting (BC), impact the well-known "strength of weak ties" in disseminating novel information across social networks. We conducted a large-scale empirical analysis, examining the sharing behavior of 500, 000 users over a two-month period on a major social media platform. Our results suggest a greater capacity for DM to transmit novel information compared to BC, although DM typically involves stronger ties. Furthermore, the "strength of weak ties" is only evident in BC, not in DM where weaker ties do not transmit significantly more novel information. Our mechanism analysis indicates that the content selection by both senders and recipients, contingent on tie strength, contributes to the observed differences between these two channels. These findings expand both our understanding of contemporary weak tie theory and our knowledge of how to disseminate novel information in social networks. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.03579 |
| By: | Poorthuis, Ate; Chen, Qingqing; Zook, Matthew |
| Abstract: | In this article, we present a historical dataset of activity spaces, originally based on publicly posted and geotagged social media sent within the United States from 2012 to 2019. The dataset, which contains approximately 2 million users and 1.2 billion data points, is de-identified and spatially aggregated to enable ethical and broad sharing across the research community. By publishing the dataset, we hope to help researchers to quickly access and filter data to study people’s activity spaces across a range of places. In this article, we first describe the construction and characteristics of this dataset and then highlight certain limitations of the data through an illustrative analysis of potential bias – an important consideration when using data not collected through representative sampling. Our goal is to empower researchers to create novel, insightful research projects of their own design based on this dataset. |
| Date: | 2024–07–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:sgj4f |
| By: | Michael Laubscher (North-West University, South Africa) |
| Abstract: | Smart contracts are becoming increasingly more part of our society and there is a definite rise in the acknowledgement of a smart contract as a contract. One of the aspects to consider when a contract is entered into, is the issue of jurisdiction. This can be problematic when dealing with smart contracts. There seems to be a conflict between the specific rules of law which govern jurisdiction and the emerging technology that a smart contract uses. When dealing with contract interpretation, jurisdiction is one of the first aspects that is analysed, discussed and applied. Interpretation of so-called traditional contracts have well-established rules and principles with regard to jurisdiction, but there seems to be a number of grey areas when it comes to this same aspect when dealing with smart contracts. |
| Keywords: | jurisdiction, smart contracts, rules, location, domicile, |
| JEL: | K12 K30 K39 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:14216076 |
| By: | Winata, Robbie Kurniawan; Soekarno, Subiakto |
| Abstract: | The purpose of this study is to summarize research on digitalization and emphasize how it affects financial performance. Additionally, applicable methodology from recent studies in a variety of domains is shown in this study. The state-of-the-art in digitalization research is described in this review article, which combines technology, finance, marketing, and innovation literature. In recent years, research on digitalization has expanded rapidly in a number of domains, employing both qualitative and quantitative techniques. The elements that affect an organization’s financial performance as a result of its digitalization—such as big data analytics, cloud computing, artificial intelligence, process automation, the Internet of Things (IoT), computer simulations, and online technology—have been the subject of more recent studies. Even if studies on digitalization have been more popular over the past five years, adding new dimensions and investigating qualitative methods remain fascinating areas of study. For academics who are unfamiliar with digitalization, this article provides an overview of how to explore the process. The article enhances the review of the impact of digitization on financial performance. |
| Date: | 2024–08–19 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:my9fk |
| By: | Mathieu Béal (EM - EMLyon Business School); Charlotte Lécuyer; Ivan Guitart (EM - EMLyon Business School) |
| Abstract: | Many brands periodically respond humorously to the content that other brands and celebrities post on social media. Drawing on three scenario-based experiments and a content analysis of humorous tweets based on their likes and retweets, the authors use the benign violation theory to understand whether using humor constitutes a benign (i.e., translating into amusement) or malign (i.e., translating into ulterior motives) violation. The success of a humorous brand-to-brand interaction (i.e., brand attitudes and purchase intentions) depends on its ability to generate amusement without causing customers to suspect ulterior motives. Study 1's results reveal that customers respond more favorably when brands use affiliative humor rather than aggressive humor. Affiliative humor constitutes a benign violation that generates amusement, while aggressive humor constitutes a malign violation that leads customers to infer that brands have ulterior motives. Study 2 shows that aggressive humor partially compensates for its weaknesses over affiliative humor when brands target competing brands. Studies 3A and 3B reveal a reversed effect depending on brand positioning (top dogs versus underdogs). While underdog brands should always use affiliative humor, top dog brands could perform better by favoring aggressive humor (i.e., such brands could receive more likes and retweets without lowering customers' purchase intentions). |
| Keywords: | humor, brand-to-brand dialogues, social media, competitive context, top dog brands, underdog brands |
| Date: | 2024–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04666015 |
| By: | Concepción Fernández Zamanillo (BANCO DE ESPAÑA); Carolina Toloba Gómez (BANCO DE ESPAÑA) |
| Abstract: | La rápida evolución tecnológica plantea importantes desafíos para las autoridades reguladoras y supervisoras a escala mundial. Aunque las innovaciones financieras digitales ofrecen oportunidades, también conllevan riesgos significativos. Para afrontar estos retos, la Ley 7/2020, de 13 de noviembre, para la transformación digital del sistema financiero, establece una serie de medidas para fomentar la innovación financiera, garantizando la protección de los usuarios de servicios financieros, la estabilidad financiera, la integridad de los mercados y la prevención del blanqueo de capitales y la financiación del terrorismo. La medida más destacada es la creación de un sandbox o espacio controlado de pruebas, que sirve como un instrumento para mejorar la labor de legisladores y supervisores, al tiempo que impulsa el ecosistema innovador. Este documento describe el funcionamiento, las fases y los requisitos de acceso del sandbox regulatorio español. A continuación, se analiza el impacto que ha tenido en los promotores cuyos proyectos han sido monitorizados por el Banco de España, su participación en el espacio controlado de pruebas, cuál ha sido su experiencia, la evolución de sus proyectos y se presentan sus sugerencias para mejorar el instrumento. Por último, se describen otros cauces específicos de comunicación directa para interactuar con las autoridades supervisoras. |
| Keywords: | facilitadores de la innovación, sandbox regulatorio, arenero, banco de pruebas, espacio controlado de pruebas, caja de arena, innovation hub, centro de innovación, innovación financiera, fintech |
| JEL: | E58 O31 O32 O33 O38 G20 G28 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2427e |
| By: | Shetty, Pavun (Yale University) |
| Abstract: | Blockchain-based games have introduced novel economic models that blend traditional gaming with decentralized ownership and financial incentives, leading to the rapid emergence of the GameFi sector. However, despite their innovative appeal, these games face significant challenges, particularly in terms of market stability, player retention, and the sustainability of token value. This paper explores the evolution of blockchain games and identifies key shortcomings in current tokenomics models using entropy increase theory. We propose two new models—ServerFi, which emphasizes Privatization through Asset Synthesis, and a model focused on Continuous Rewards for High-Retention Players. These models are formalized into mathematical frameworks and validated through group behavior simulation experiments. Our findings indicate that the ServerFi is particularly effective in maintaining player engagement and ensuring the long-term viability of the gaming ecosystem, offering a promising direction for future blockchain game development. |
| Date: | 2024–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:tsxj2 |
| By: | Grant Goehring; Filippo Mezzanotti; S. Abraham (Avri) Ravid |
| Abstract: | This paper studies the impact of career concerns on technological change by analyzing the adoption of digital cinematography in the US motion picture industry. This setting allows us to collect rich data on the adoption of this new technology at the project-level (i.e., movie) as well as on the career of the main decision maker (i.e., director). We find that early career directors played a leading role in the adoption of digital technology and that this effect appears to be explained by career concerns, rather than alternative motives we consider and analyze. Technological savviness also plays a role. |
| JEL: | D22 L2 M19 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32844 |
| By: | Ali Habibnia; Mahdi Soltanzadeh |
| Abstract: | This study presents a Reinforcement Learning (RL)-based portfolio management model tailored for high-risk environments, addressing the limitations of traditional RL models and exploiting market opportunities through two-sided transactions and lending. Our approach integrates a new environmental formulation with a Profit and Loss (PnL)-based reward function, enhancing the RL agent's ability in downside risk management and capital optimization. We implemented the model using the Soft Actor-Critic (SAC) agent with a Convolutional Neural Network with Multi-Head Attention (CNN-MHA). This setup effectively manages a diversified 12-crypto asset portfolio in the Binance perpetual futures market, leveraging USDT for both granting and receiving loans and rebalancing every 4 hours, utilizing market data from the preceding 48 hours. Tested over two 16-month periods of varying market volatility, the model significantly outperformed benchmarks, particularly in high-volatility scenarios, achieving higher return-to-risk ratios and demonstrating robust profitability. These results confirm the model's effectiveness in leveraging market dynamics and managing risks in volatile environments like the cryptocurrency market. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.05382 |
| By: | Robertson, Deirdre; Poluektova, Olga; Lavin, Ciarán; Timmons, Shane; Lunn, Pete |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:esr:wpaper:wp782 |
| By: | Kim, Hyun Soo (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Young Gui (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Kyu Yub (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Minji (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 이 연구에서는 일반균형모형 구축을 통해 디지털 통상협정의 경제적 효과를 정량적으로 분석한다. 이를 위해 디지털 통상협정에서 주요한 디지털 통상규범을 식별하고, 규범 도입이 가져올 변화를 정량적으로 추정한다. 그리고 디지털 경제의 특성을 포함한 일반균형모형을 구축하여 규범 도입에 따라 나타나는 거시경제적 영향을 분석하며, 장기적으로 국내 경제에 미칠 파급효과에 대해 살펴본다. Discussions to establish common rules for digital trade and to enhance cooperation in the digital economy are taking place on various platforms. At the multilateral level, WTO e-commerce negotiations are in progress, and at the bilateral level, e-commerce chapters of regional trade agreements are being revised. South Korea is also expanding its digital trade network by promoting a number of digital trade agreements. Digital trade rules introduced by digital trade agreements are expected to have an economic impact via multiple channels. Digital trade rules have the potential to facilitate digital trade by reducing trade barriers, leading to overall trade expansion. Expanding trade not only boosts production through increased imports and exports, but can also increase productivity through the spillover of new technologies and increased competition. As the digital trade network expands, the need to analyze the economic impact of digital trade agreements also grows. In recognition of these developments, this study quantitatively analyzes the economic effects of digital trade agreements through a general equilibrium model. We first identify the key digital trade rules in digital trade agreements and estimate how much they reduce trade barriers. Then we build a general equilibrium model that includes the characteristics of the digital economy to analyze the macroeconomic impacts of introducing digital trade rules. This study largely consists of five parts. In Chapter 2, we explore digital trade barriers, such as policy restrictions and technology barriers that can limit digital trade between countries and review the key provisions in digital trade agreements in order to mitigate the barriers. While there are still no explicit rules at the multilateral level such as the WTO, except for a moratorium on customs duties on electronic transmissions, digital trade rules in RTAs have become more comprehensive over time and the level of liberalization is increasing. In addition, Digital Economy Agreements have emerged that contain provisions for cooperation in areas such as SMEs, AI, and fintech. (the rest omitted) |
| Keywords: | digital trade agreements; digital economy; economic impact |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_025 |
| By: | Hui-Fei Lin (Graduate Institute of Mass Communication, National Taiwan Normal University); Benjamin Yeo (Albers School of Business and Economics, Seattle University); Chih-Ru Yu (Graduate Institute of Mass Communication, National Taiwan Normal University) |
| Keywords: | Chatbots, e-commerce, type of customer service agent, self-disclosure time, level of humor, customer service chatbots |
| JEL: | C90 L81 M37 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iacpro:14216119 |
| By: | Paraná, Edemilson |
| Abstract: | From an ‘infrastructural gaze, ’ this chapter examines the penetration of artificial intelligence in capital markets as a blend of continuity and change in finance. The growing infrastructural dimension of AI stems firstly from the evolution of algorithmic trading and governance, and secondly from its rise as a ‘general-purpose technology’ within the financial domain. The text discusses the consequences of this ‘infrastructuralisation’ of financial AI, considering the micro-macro tension typical of capital accumulation and crisis dynamics. Challenging the commonly held notion of AI as a stabilising force, the analysis underscores its connections with volatile, crisis-prone financialised dynamics. It concludes by outlining potential consequences (unpredictability, operational inefficiency, complexity, further concentration) and (systemic) risks arising from the emergence of AI as a ‘new’ financial infrastructure, particularly those related to biases in data and data commodification, lack of transparency in underlying models, algorithmic collusion, and network effects. The text asserts that a thorough understanding of these hazards can be achieved by adopting a perspective that considers the macro-meso-micro connections inherent in infrastructures. |
| Date: | 2024–08–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:ub92z |
| By: | Brian Zhu |
| Abstract: | Stablecoins have historically depegged due from par to large sales, possibly of speculative nature, or poor reserve asset quality. Using a global game which addresses both concerns, we show that the selling pressure on stablecoin holders increases in the presence of a large sale. While precise public knowledge reduces (increases) the probability of a run when fundamentals are strong (weak), interestingly, more precise private signals increase (reduce) the probability of a run when fundamentals are strong (weak), potentially explaining the stability of opaque stablecoins. The total run probability can be decomposed into components representing risks from large sales and poor collateral. By analyzing how these risk components vary with respect to information uncertainty and fundamentals, we can split the fundamental space into regions based on the type of risk a stablecoin issuer is more prone to. We suggest testable implications and connect our model's implications to real-world applications, including depegging events and the no-questions-asked property of money. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.07227 |
| By: | Roger E.A. Farmer |
| Abstract: | I introduce money into an incomplete markets model with heterogeneous agents and uninsurable income risk. I show that the model exhibits both non-monetary and monetary equilibria, with the latter existing when income risk is sufficiently high. Using numerical methods, I characterize the properties of these equilibria and analyze their stability. I find that for a range of realistic parameter values, the non-monetary equilibrium is dynamically inefficient and indeterminate, and there is a second determinate monetary equilibrium with positive valued fiat money. |
| JEL: | D52 E30 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32836 |
| By: | Benjamin Kongolo (Université de Kinshasa, Université Pédagogique Nationale) |
| Abstract: | This study, which focuses on the issue of sovereignty in the DRC, has set itself the objective of verifying the sovereignty of the national currency in the DRC. To achieve this, the study is divided into 3 points which respectively dealt with generalities on monetary sovereignty, statistical verification of sovereignty and finally empirical analysis of monetary sovereignty. After analysis by the ARDL model, the study came to the conclusion that the Congolese national currency does not meet the criteria of a sovereign currency, because it cannot be used to stabilize the general level of prices and boost the economic growth. |
| Abstract: | Cette étude qui porte sur la problématique de la souveraineté en RDC s'est fixé comme objectif de vérifier la souveraineté de la monnaie nationale en RDC. Pour y parvenir, l'étude est scindée en 3 points qui ont traité respectivement des généralités sur la souveraineté monétaire, vérification statistique de la souveraineté et enfin analyse empirique de la souveraineté monétaire. Après analyse par le modèle ARDL, l'étude est arrivée à la conclusion selon laquelle, la monnaie nationale congolaise ne remplit pas les critères d'une monnaie souveraine, car elle ne peut être utilisé pour stabiliser le niveau général des prix et de booster la croissance économique. |
| Keywords: | souveraineté monétaire modèle ARDL monetary sovereignty ARDL model, souveraineté monétaire, modèle ARDL monetary sovereignty, ARDL model |
| Date: | 2024–08–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04667135 |
| By: | Neifar, Malika |
| Abstract: | Purpose: The scope of this paper is to see if the aggregate information and communications technology index (ICT) drives firm performance (profitability and efficiency) for BRICS countries from a des-aggregate panel data of the firm-yearly level (by country) during 2014-2022, from an aggregate monthly time series data and a panel data of country-monthly level during 2014-01-2014-12, all covering the Covid outbreak event. Design/methodology/approach: Through static and dynamic long-run (LR) panel models, the Bayesian VAR-X short-run (SR) approach, and the time series and the panel (LR and SR) ARDL models, we investigate the stability of the linkage between firm performance and the aggregate ICT vis à vis the Covid outbreak. Findings: Using an international sample of 316 FinTech firms from BRICS countries, we find that ICT mechanisms on their own are in general negatively associated with firm performance (profitability and efficiency) with some exceptions. We also find that the ICT and the firm-performance relationship is more significant among countries with respect to the considered pre ou post Covid 19 outbreak period. Originality: The novelty of this research is based on the idea of studying the effect of the aggregate ICT on firm performance by using several dynamic approaches so that we can estimate the SR adjustments that arise from the impact of ICT to the LR relationship. |
| Keywords: | FinTech Firm performance and ICT; BRICS area; Dynamic Panel Regressions and GMM for firm level panel data; Bayesian VAR-X and ARDL models for TS data; PARDL for macro panel data; Covid 19 outbreak |
| JEL: | C11 C22 C23 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121772 |
| By: | Carboni, Tamara; Cutuli, Romina |
| Abstract: | En 2021, el Ministerio de Economía y el Ministerio de Mujeres, Géneros y Diversidad de Argentina presentaron la Calculadora de Cuidados, una iniciativa digital que permite medir y reconocer el valor económico de las actividades de cuidado. En este trabajo proponemos un análisis de la contribución de esta herramienta a la visibilización del cuidado a partir de la recuperación de información cuantitativa y cualitativa del Informe de Impacto realizado por el Ministerio de Mujeres, Géneros y Diversidad, y una entrevista a una informante clave vinculada con su diseño e implementación. |
| Keywords: | Trabajo Doméstico; Trabajo de Cuidados; Actividad no Remunerada; Mujeres; Argentina; |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4160 |
| By: | OECD |
| Abstract: | The use of Artificial Intelligence (AI) in finance has increased rapidly in recent years, with the potential to deliver important benefits to market participants and to improve customer welfare. At the same time, AI in finance could also amplify existing risks in financial markets and create new ones. This report analyses different regulatory approaches to the use of AI in finance in 48 OECD and non-OECD jurisdictions based on the Survey on Regulatory Approaches to AI in Finance. |
| Date: | 2024–09–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:comaaa:24-en |
| By: | Knake, Sebastian |
| Abstract: | In his article, Sebastian Knake challenges the general assumption that traditional savings accounts in the US disappeared naturally as a result of the combination of interest rate regulation and extraordinarily high market interest rates during the stagflation period. By comparing the US experience with simultaneous developments in West Germany, he finds that the opportunity costs of owning a regular passbook were comparable in both countries. In contrast to the US case, however, the passbook remained a cornerstone of household saving in Germany. Drawing upon research in several bank archives in the US and Germany, Knake explains these divergent developments in terms of fundamental differences in how banks and their customers communicated over prices. In the US, a peculiar combination of regulative rules forced banks, and especially savings institutions, to aggressively promote new types of bank accounts that were introduced by federal regulation authorities, thereby increasing nominal interest rate expectations. In Germany, by contrast, banks confined information about advantageous investment opportunities to the smallest possible share of the customer base. These divergent communication strategies reflect a difference in the balance of power in the bank-customer relationship. German customers depended on their primary-and in most cases only-bank relationship to acquire information on alternative investments, while US customers could draw on several relationships with banks and savings institutions to obtain the relevant information. Thus, the fate of the passbook was sealed by the ability or inability of banks to keep their customers in the dark about the real opportunity costs of passbook saving. |
| Keywords: | Savings, Deposits, Interest Expectations, Portfolio Choice, Financial History, Passbook, Comparative History |
| JEL: | G14 G21 N20 N22 N24 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:pp1859:301873 |