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on Payment Systems and Financial Technology |
| By: | Cyrille Grumbach (ETH Zürich); Didier Sornette (Risks-X, Southern University of Science and Technology (SUSTech); Swiss Finance Institute) |
| Abstract: | Bitcoin's substantial carbon footprint is widely acknowledged, though debates persist regarding its true scale. In this study, we present a novel methodology to quantify Bitcoin's carbon footprint, demonstrating a dramatic increase from 0.02 MtCOe in 2011 to 89 MtCO 2 e in 2023. By leveraging large language models to analyze Bitcoin Forum data, we accurately identify miners' hardware configurations, addressing the limitations of prior research that lacked empirical data. Our findings also highlight that Bitcoin mining is approaching cost-price parity, positioning it as a potentially enduring financial instrument. |
| Keywords: | Bitcoin, blockchain technology, Carbon footprint, Cryptocurrency mining, mining hardware |
| JEL: | C19 C80 Q01 Q56 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2451 |
| By: | Sebastian Hernandez; Alexandra Sutton-Lalani; John Miedema; Virginie Cobigo; Fatoumata Bah; Munazza Tahir; Danika Lévesque; Badr Omrane |
| Abstract: | We explore how digital payments, which dominate the payment landscape in Canada, can be made more cognitively accessible. In particular, we are focused on removing cognitive barriers present in many digital interfaces and products. We propose an inclusive approach since involving people with cognitive disabilities in design, testing, and refinement is crucial. The proposed framework centers on system learnability and user workload as the two key measures of cognitive accessibility in digital payment and banking interfaces. System learnability is determined by measuring first use learnability, steepness of the learning curve and efficiency of the ultimate plateau. Workload is determined by the sub-measures mental demand, temporal demand, frustration and performance. The framework is broadly applicable to digital and electronic payment methods. We develop and test a prototype interface for voice payments, which successfully demonstrates that the framework provides an effective iterative design approach to enhance cognitive accessibility and usability. The Bank of Canada can use this framework to create guidelines for more cognitively accessible electronic payment products, including a potential Digital Canadian Dollar. While the framework facilitates efficient evaluation, further validation is still needed. This framework should also be used with broader holistic usability and accessibility testing, recognizing that cognitive accessibility is just one aspect of the user experience. |
| Keywords: | Accessibility; Bank notes; Central bank research; Digital currencies and fintech; Digitalization; Financial services |
| JEL: | A14 C90 D83 O33 Y80 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:bca:bocadp:24-15 |
| By: | Nam, Jinyoung; Jung, Yoonhyuk |
| Abstract: | Digitalization is widely recognized as a pivotal force influencing the evolution of the business world and societies at large (Cortellazzo et al., 2019). Media platforms have entered foreign markets to grab new opportunities, especially for geographic and product expansion in the global market. Over-the-top (OTT) platforms focus on global expansion into diverse regions, aiming for platform expansion in the global market. Many established competitors have led to many OTT platforms including Netflix expanding internationally (Deloitte, 2018). For instance, Paramount planned to commission 150 original international programs for Paramount Plus streaming services by 2025, while Disney Plus has expanded its services in the international regions (FICDC, 2022). OTT platforms have become the main distribution and consumption channel for digital content by global users. |
| Keywords: | Over-the-top (OTT) platforms, Internationalization strategies, AHP analysis |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302501 |
| By: | Teodoro Criscione |
| Abstract: | Transaction data from digital payment systems can be used to study economic processes at such a detail that was not possible previously. Here, we analyse the data from Sarafu token network, a community inclusion currency in Kenya. During the COVID-19 emergency, the Sarafu was disbursed as part of a humanitarian aid project. In this work, the transactions are analysed using network science. A topological categorisation is defined to identify cyclic and acyclic components. Furthermore, temporal aspects of circulation taking place within these components are considered. The significant presence of different types of strongly connected components as compared to randomized null models shows the importance of cycles in this economic network. Especially, indicating their key role in currency recirculation. In some acyclic components, the most significant triad suggests the presence of a group of users collecting currency from accounts active only once, hinting at a misuse of the system. In some other acyclic components, small isolated groups of users were active only once, suggesting the presence of users only interested in trying out the system. The methods used in this paper can answer specific questions related to user activities, currency design, and assessment of monetary interventions. Our methodology provides a general quantitative tool for analysing the behaviour of users in a currency network. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.13674 |
| By: | Ogbo-Gebhardt, Erezi |
| Abstract: | Perhaps due to the growing array of digital inclusion programs that are increasingly offered by community organizations, states are examining ways to help their residents search – and determine their eligibility – for programs within their communities. To this end, several states are conducting digital asset mapping and plan to build a publicly accessible repository of these assets. However, there is a risk that the platform will be built yet acceptance and use will be low. This paper discusses the case of North Carolina and presents emergent themes from local community-based organizations on current knowledge sharing practices in digital inclusion ecosystems within communities and insights on key factors to encourage adoption and use of the digital asset inventory platform. |
| Keywords: | Community Informatics, Digital Inclusion, Asset Mapping, Participatory Research, Knowledge Sharing |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302533 |
| By: | Wongmith, Natnaree; Phuengngern, Ornvipa |
| Abstract: | With the advancement of digital technology, governments have created more channels for citizens to access accessing government services. However, there are disparities in accessibility and utilization of the services, leading to uneven benefits across the population. This study investigated the determinant factors of e-government service utilization and identified the sociodemographic characteristics and technological usage of individuals who used and did not use the services. The study analyzed data from 2023 Nationwide Telecommunications Usage Behavior and Device Access Survey (n = 42, 335). Chi-squared test, z-test and, and binary logistic regression were employed to analyze the data. The findings indicated that age, education, geographical location, mobile broadband technology, and type of data cap are significant predictors of e-government utilization. |
| Keywords: | Digital divide, E-Government service utilization, Mobile internet access, Prepaid service, Postpaid service, Survey research |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302471 |
| By: | Shin, Saehe |
| Abstract: | With the advancement of digital technology, the music industry has undergone significant changes, with music streaming services becoming the primary means of music consumption worldwide. In South Korea, native music streaming platforms like Melon and Bugs have long dominated the market. However, the recent rapid growth of global platforms such as YouTube Music has intensified the competition. This study focuses on adolescent users to analyze the competitive relationships among major music streaming platforms in this competitive environment. Four platforms—YouTube Music, Melon, Genie Music, and Flo—were selected for the study, and a survey was conducted with youth users aged 14 to 18. Based on niche theory, five fulfillment factors were defined: music diversity, recommendation services, additional services, price value, and ease of use. The competitiveness of each platform was analyzed based on these factors. Through this analysis, the study aims to provide strategic implications for South Korean music streaming platforms to achieve sustainable success in the face of global competition. By doing so, it aims to provide strategic insights for South Korean music streaming platforms to achieve sustainable success in competition with global platforms that are gradually increasing their market share. |
| Keywords: | music streaming, music streaming service, music streaming platform, niche analysis, Melon, Genie Music, FLO, YouTube Music |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302476 |
| By: | Aquije Ballon, Harry Fernando; Bahia, Kalvin; Castells, Pau |
| Abstract: | While mobile technologies have already connected billions of people, the Internet of Things (IoT) is now adding all kinds of devices to the digital ecosystem. The potential benefits of connecting the physical world to the internet are vast, but not well understood. This study provides a contribution to quantify the contribution of IoT to economic growth. By leveraging a unique dataset that measures IoT connections by vertical industry across 163 countries between 2010 and 2022, we find that IoT made a significant contribution to GDP growth. On average, a 10 percentage point increase in IoT connections per inhabitant increased GDP by 0.7% in LMICs and 0.5% in HICs. We find that this impact is primarily driven by enterprise IoT, accounting for 80% of the total effect, while consumer IoT contributed 20%. |
| JEL: | O47 O33 L96 O11 O4 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302494 |
| By: | Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | The purpose of the study is to assess if a policy of female inclusive education should be complemented with a policy of female ownership of bank accounts to fight female unemployment. The study therefore examines how female ownership of bank accounts moderates the incidence of female education on female unemployment. The focus is on 44 Sub-Saharan African (SSA) countries for the period 2004 to 2018 and the empirical evidence is based on interactive quantile regressions. The interactions are tailored such that female ownership of bank accounts influence the effect of female inclusive education on female unemployment. From the empirical findings, it is evident that female ownership of bank accounts does not effectively moderate female education in order to reduce female unemployment unless complementary policies are considered. The complementary policies should be in view of boosting the interaction between female education and female bank account ownership in increasing employment opportunities for the female gender and by extension, reducing female unemployment. The invalidity of the moderating effect is robust to the inclusion of more elements in the conditioning information set as well as accounting for other dimensions of endogeneity such as simultaneity and the unobserved heterogeneity. Policy implications are discussed. This study contributes to the extant literature by assessing how female ownership of bank accounts complement female inclusive education to reduce female unemployment. |
| Keywords: | Africa; Inequality; Gender; Inclusive development; Unemployment |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/009 |
| By: | Martínez-de-Ibarreta, Carlos; Ruiz-Rua, Aurora; Gijón, Covadonga; Fernández-Bonilla, Fernando |
| Abstract: | This paper carries out an exhaustive analysis of the implementation of e-banking in Spain, the impact of the reduction of bank branches and how both phenomena affect the elderly and the rural world. This allows us to take a picture of the user affected by the digital divide when using e-banking and to get to know them to support them in the digitisation process. The study is conducted by developing a logit model with random effects and a complete descriptive study of the panel data from the survey on equipment and use of information and communication technologies in households between 2017 and 2021, obtaining very important results: the fewer bank branches per thousand inhabitants, the greater the propensity to use e-banking, age and the development of e-skills are a differentiating factor in the adoption of e-banking services, a strong gender gap remains, there is no deep implementation of the other tools provided by digital banking. It is necessary to enhance the financial and online knowledge of individuals to maximise their usefulness in the use of digital banking services. |
| Keywords: | traditional banking, online banking, consumers, survey data, econometric models |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302528 |
| By: | Haoyu Liu; Carl Donovan; Valentin Popov |
| Abstract: | Financial and gambling markets are ostensibly similar and hence strategies from one could potentially be applied to the other. Financial markets have been extensively studied, resulting in numerous theorems and models, while gambling markets have received comparatively less attention and remain relatively undocumented. This study conducts a comprehensive comparison of both markets, focusing on trading rather than regulation. Five key aspects are examined: platform, product, procedure, participant and strategy. The findings reveal numerous similarities between these two markets. Financial exchanges resemble online betting platforms, such as Betfair, and some financial products, including stocks and options, share speculative traits with sports betting. We examine whether well-established models and strategies from financial markets could be applied to the gambling industry, which lacks comparable frameworks. For example, statistical arbitrage from financial markets has been effectively applied to gambling markets, particularly in peer-to-peer betting exchanges, where bettors exploit odds discrepancies for risk-free profits using quantitative models. Therefore, exploring the strategies and approaches used in both markets could lead to new opportunities for innovation and optimization in trading and betting activities. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.13528 |
| By: | Farahmand, Elham; Muñoz I Busto, Isaac; Khan, Mudassir Akber; Adur, Hilda |
| Abstract: | Digitalization is transforming industries, creating opportunities and challenges for established companies and startups (Rachinger et al., 2018). The LEGO Group, despite facing challenges, has successfully embraced digital transformation to enhance success. However, concerns about data security and ethical usage arise from extensive data collection from platforms like LEGO Ideas and Bricklinks (Holland & Wise, 2023). This research aims to address these issues and provides valuable insights from the LEGO Group's experiences to help organizations navigate their digital transformation initiatives effectively in today's digital landscape. |
| Keywords: | Business Model Innovation, Digital Transformation, Open Innovation, Dynamic Capabilities, The LEGO Group |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302493 |
| By: | Tan, Zi Ling; Lim, Siok Jin |
| Abstract: | This study investigates the dynamic interrelationship between Ethereum and key stock indices in the Asian-Pacific region, focusing on its potential role as a diversification tool for equity investors. Utilizing a Multivariate Generalized Autoregressive Conditional Heteroskedasticity Dynamic Conditional Correlation (MGARCH-DCC) model, we analyse daily closing prices from November 2018 to November 2023 across four developed Asian stock markets—China, Hong Kong, Japan, and Malaysia—alongside Ethereum. The findings reveal that Ethereum exhibits distinctive volatility patterns compared to traditional stock indices, with conditional correlations fluctuating significantly over time. Notably, Ethereum demonstrates weak correlations with Malaysian stocks, suggesting potential diversification benefits for investors in this market. The study contributes to the growing literature on cryptocurrency's financial integration, offering insights into the hedging properties of Ethereum amidst evolving market dynamics in the Asian-Pacific region. |
| Keywords: | Ethereum, Asian-Pacific stock indices, Multivariate-GARCH, Dynamic Conditional Correlation (DCC), Cryptocurrency, Financial integration, Diversification, Volatility, Hedging, Emerging markets |
| JEL: | G15 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121786 |
| By: | Ha, Jinkyung |
| Abstract: | The rapid growth of the digital content market has fueled the expansion of the creator economy, driving platforms to innovate and vie for creators' attention. In South Korea, the competitive landscape intensified with Twitch's withdrawal from the market in December 2023. This decision significantly impacted streamers who create content and shape the ecosystem, compelling them to quickly undertake involuntary platform migration to maintain their stability. However, most previous research has focused on voluntary migration. To address this gap, this study adopts refugee theory and analytic hierarchy process (AHP) approach to systematically examine the decision-making process in involuntary migration and identify the key criteria that streamers consider in this unique circumstance. As the result, this study found that streamers considered their own characteristic as the most important criterion in case of involuntary migration. Additionally, it reveals that fan preference, content category, and platform ambience similarity play crucial roles in the decision-making process, with CHZZK emerging as the most attractive alternative platform. As one of the first studies to explore involuntary platform migration, it provides both academic and practical implications for understanding how streamers adapt to sudden platform changes and highlights the importance of maintaining robust fan communities. |
| Keywords: | Live-streaming, Creator economy, Involuntary migration, Refugee theory, Analytic Hierarchy Process |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302475 |
| By: | Gijón, Covadonga; Fernández-Bonilla, Fernando; Ruiz-Rua, Aurora; Martínez-de-Ibarreta, Carlos |
| Abstract: | This paper examines the impact of online education on inclusivity and accessibility, focusing on undergraduate education. It explores how digital platforms address diverse learning needs and promote educational equity, particularly for students with disabilities. While online education offers personalized learning and enhanced engagement, it also highlights challenges such as digital literacy and access to reliable internet. The study addresses the digital divide, which disproportionately affects students from lower socioeconomic backgrounds, rural areas, and those with disabilities. The paper emphasizes the importance of policy interventions, institutional support, and the adoption of Universal Design for Learning (UDL) to create inclusive educational environments. It concludes by identifying gaps in empirical data and calling for further research to develop comprehensive approaches for equitable e-learning. |
| Keywords: | Online education, Digital divide, Inequality, e-learning, disabilities, higher education, Survey data, Econometric models |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302529 |
| By: | Ekene ThankGod Emeka (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Johannesburg, South Africa); Yolande E. Ngoungou (Yaoundé, Cameroon) |
| Abstract: | This study examines the effects of gender economic inclusion on economic complexity in Africa, as well as the moderating role of governance institutions on the relationship between gender inclusion and economic complexity. The analysis was based on the pooled OLS and the system generalized method of moments (GMM) estimation techniques, with data from 34 African economies between 2010-2021. The analysis uncovered several important findings. First, from the most robust model (i.e., GMM), positive synergies are apparent because gender economic inclusion promotes economic complexity, and governance dynamics further enhance the positive effect of gender economic inclusion on economic complexity. Second, regardless of the adopted technique, a predominantly positive and statistically significant relationship was identified between gender economic inclusion and economic complexity. Third, it was observed that while governance institutions exhibit a negative relationship with economic complexity, they play a positive role in moderating the relationship between gender inclusion and economic complexity. Fourth, factors such as foreign direct investment inflow, trade openness, and international tourism were identified as potent drivers of economic complexity in Africa, while the impact of human capital appears to be relatively subdued. Consequently, the study emphasizes the need for institutional reforms to improve governance transparency, accountability, and efficiency, alongside advocating for gender-inclusive policies and increased investment in education. |
| Keywords: | Gender economic inclusion; economic complexity; governance institutions; panel data; Africa |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/012 |
| By: | Mikołaj Czajkowski (University of Warsaw, Faculty of Economic Sciences); Wojciech Zawadzki (University of Warsaw, Faculty of Economic Sciences); Grzegorz Bernatek (bAudytel S.A.); Maciej Sobolewski (University of Warsaw, Faculty of Economic Sciences) |
| Abstract: | In this study, we explore the dynamics of consumer choices in the Polish telecommunications market, focusing on preferences and valuations for home fixed, home mobile, and purely mobile internet connections. Key attributes such as speed, latency, data limits, and cost are examined. Central to our research is the investigation of how the integration of 5G technology might influence demand elasticity. Using a detailed discrete choice experiment, we apply a mixed logit model with random parameters to analyze stated choice data, enabling us to unravel the complexities of demand elasticity, especially in terms of own- and cross-price elasticities. This approach facilitates an assessment of the degree of substitutability between fixed and mobile internet services. Our findings indicate a moderate substitution effect between fixed and mobile internet services. Results from a Small but Significant and Non-transitory Increase in Price (SSNIP) test suggest that these markets should continue to be regulated separately, mirroring the distinct regulation observed in fixed and mobile telephony. Furthermore, simulations provide insights into potential future market shifts with the advent of 5G services. This paper contributes significantly to the discourse on fixed-mobile internet substitution and offers vital insights for defining markets in antitrust discussions, competitive agreements, and potential mergers within the telecom sector. |
| Keywords: | Fixed-Mobile Internet Substitution, Consumer Preferences in Telecommunications, Mobile Broadband Access, Home Internet Connectivity, Discrete Choice Analysis, 5G Network Impact, Demand Elasticity in Internet Services, Stated Preference Methodology, Telecommunications Market Analysis, Price Elasticity in Internet Access |
| JEL: | L96 D12 C25 L51 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2024-15 |
| By: | Ha, Seungyeon |
| Abstract: | Digital accessibility is not static, but a dynamic process that actively interacts with both physical and digital contexts. This study provides a comprehensive overview of digital accessibility by analyzing 416 scholarly articles published from 1996 to 2024 from SCOPUS and Web of Science to capture digital accessibility in current context. First, a bibliometric analysis examines publication trends, including years, countries, affiliations, authors, and keywords, to identify overall trends and emerging themes. This is supplemented by a qualitative analysis of 80 selected articles, providing an in-depth understanding of current research themes. Additionally, the study collects and analyzes 70 relevant quotations to enhance conceptual understanding and provide a standardized definition of digital accessibility. The results offer an extensive overview of digital accessibility literature using both quantitative and qualitative method, providing both surface level and in-depth analysis of what is being discussed in digital accessibility in academia. It contributes to digital accessibility literature by providing a steppingstone as well as guidelines for future research. |
| Keywords: | Digital accessibility, Media accessibility, Web accessibility, Systematic literature review, Bibliometric analysis, Digital inclusion |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302477 |
| By: | Choi, Jaeseo |
| Abstract: | The advancements in digital technology have not only transformed business operations across various industries but also driven rapid changes and innovations within business landscape. Digital technology operates independently of economic development levels, and the emergence of novel technologies enables diverse business to explore new business model (Ali et al., 2020). There has been a movement towards anticipating a paradigm shift in technological frameworks to establish the groundwork for Web 3.0 and to incorporate these changes into business model (Yoo et al., 2022). To keep up with the paradigm shift on the technological front, companies are navigating significant growth in the business domains related to information collection, management, and storage. Moreover, digitalization has recently emerged as a new aspect in information investment, coinciding with the growth (Ali et al., 2020). In the situation of the changing landscape information and communication technology utilization, survival for businesses entails leveraging aspects if the innovation lifecycle. This involves applying new strategies based on it, introducing innovative business model, and harnessing digital technology (Kaijkawa et al., 2022). Non-Fungible Token (NFT) can be regarded as a prime example where the emergence of digital technology has reshaped business approaches for enterprises (Ali et al., 2023). |
| Keywords: | NFT, Means-end Chain analysis, Laddering, Entertainment Industry |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302456 |
| By: | Fang Wang (Florence Wong); Marko Gacesa |
| Abstract: | This study extends the examination of the Efficient-Market Hypothesis in Bitcoin market during a five year fluctuation period, from September 1 2017 to September 1 2022, by analyzing 28, 739, 514 qualified tweets containing the targeted topic "Bitcoin". Unlike previous studies, we extracted fundamental keywords as an informative proxy for carrying out the study of the EMH in the Bitcoin market rather than focusing on sentiment analysis, information volume, or price data. We tested market efficiency in hourly, 4-hourly, and daily time periods to understand the speed and accuracy of market reactions towards the information within different thresholds. A sequence of machine learning methods and textual analyses were used, including measurements of distances of semantic vector spaces of information, keywords extraction and encoding model, and Light Gradient Boosting Machine (LGBM) classifiers. Our results suggest that 78.06% (83.08%), 84.63% (87.77%), and 94.03% (94.60%) of hourly, 4-hourly, and daily bullish (bearish) market movements can be attributed to public information within organic tweets. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.15988 |
| By: | Jang, Chaeyun |
| Abstract: | Digital transformation encompasses fundamental changes in strategy, operations, and culture through the adoption of digital technologies. The franchised restaurant industry in South Korea is undergoing such a transformation, prominently using kiosks for ordering and payment processes. While kiosks enhance convenience and efficiency, they pose challenges for the elderly, who face digital exclusion. South Korea's aging society heightens this issue, as digital exclusion can lead to broader social exclusion. Addressing kiosk accessibility in the private sector, where adoption is rising, necessitates understanding the perceptions of those managing these services. This study adopts Social Representation Theory (SRT) to explore restaurant industry employees' understanding of kiosk accessibility for the elderly. Through semi-structured interviews and core-periphery analysis, the findings reveal both business opportunities and organizational challenges in improving kiosk accessibility for the elderly. This study offers implications for integrating digital inclusion into the digital transformation of private industries. |
| Keywords: | Kiosk, Digital accessibility, Digital inclusion for elderly, Restaurant industry in South Korea, Social representation theory |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302474 |
| By: | Laudenbach, Christine; Siegel, Stephan |
| Abstract: | We examine the effect of personal, two-way communication on the payment behavior of delinquent borrowers. Borrowers who speak with a randomly assigned bank agent are significantly more likely to successfully resolve the delinquency relative to borrowers who do not speak with a bank agent. Call characteristics related to the human touch of the call, such as the likeability of the agent's voice, significantly affect payment behavior. Borrowers who speak with a bank agent are also significantly less likely to become delinquent again. Our findings highlight the value of a human element in interactions between financial institutions and their customers. |
| Keywords: | Personal Communication, Consumer Finance, Loan Repayment, Promise Keeping, Social Distance |
| JEL: | D14 G11 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:303038 |
| By: | Ronak Jain; Samuel Stemper |
| Abstract: | We study the impact of global expansions in mobile internet access between 2000 and 2018 on student outcomes. We link geospatial data on the rollout of 3G mobile technology with over 2.5 million student test scores from 82 countries. Our findings indicate that the introduction of 3G coverage leads to substantial increases in smartphone ownership and internet usage among adolescents. Changes in 3G coverage lead to significant declines in test scores in math, reading, and science, with magnitudes roughly equivalent to the loss of one-quarter of a year of learning. We also find evidence of a reduction in the ease of making friends and a sense of belonging. |
| JEL: | I21 I25 I31 J24 L86 O33 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:zur:econwp:453 |
| By: | Nam, Sangjun; Kwon, Youngsun |
| Abstract: | Considering that privacy concerns could affect users' privacy behavior as an antecedent, it is important to investigate the impact of strengthened personal data protection regulation on users' privacy concerns. However, there exists mixed views that the personal data protection regulation has a positive or negative effect on users' privacy concerns by increasing privacy awareness and trustworthiness, respectively. We propose the approach using smartphone platform-level privacy regulation as a proxy for national-level personal data protection regulation to overcome the difficulty of setting up treatment and control groups for implementing dynamic Difference-in-Difference analysis. The result showed that introducing personal data protection regulation has a positive effect on users' privacy concerns in the short term; however, the positive effect could be diluted over time. |
| Keywords: | Personal Data, Online Platform, Regulation, Privacy Concern, App Tracking Transparency |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302472 |
| By: | Michael Junho Lee; Antoine Martin; Robert M. Townsend |
| Abstract: | Trades in today’s financial system are inherently subject to settlement uncertainty. This paper explores tokenization as a potential technological solution. A token system, by enabling programmability of assets, can be designed to eradicate settlement uncertainty. We study the allocations achieved in a decentralized market with either the legacy settlement system or a token system. Tokenization can improve efficiency in markets subject to a limited commitment problem. However, it also materially alters the information environment, which in turn aggravates a hold-up problem. This limits potential gains from resolving settlement uncertainty, particularly for markets that depend on intermediaries. We show that optimal design hinges on joint design of settlement and trading systems, and in particular, that token systems work best when matched with direct trading. |
| Keywords: | tokenization; programmability; settlement uncertainty; asymmetric information |
| JEL: | D47 D82 D86 G29 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:98896 |
| By: | Viral V. Acharya; Nicola Cetorelli; Bruce Tuckman |
| Abstract: | In recent years, assets of nonbank financial intermediaries (NBFIs) have grown significantly relative to those of banks. These two sectors are commonly viewed either as operating in parallel, performing different activities, or as substitutes, performing substantially similar activities, with banks inside and NBFIs outside the perimeter of banking regulation. We argue instead that NBFI and bank businesses and risks are so interwoven that they are better described as having transformed over time, rather than as having migrated from banks to NBFIs. These transformations are at least in part a response to regulation and are such that banks remain special as both routine and emergency liquidity providers to NBFIs. We support this perspective as follows: (i) the new and enhanced financial accounts data for the United States (“From Whom to Whom”) show that banks and NBFIs finance each other, with NBFIs especially dependent on banks; (ii) case studies and regulatory data show that banks remain exposed to credit and funding risks, which at first glance seem to have moved to NBFIs, and also to contingent liquidity risk from the provision of credit lines to NBFIs; and (iii) empirical work confirms bank-NBFI linkages through the correlation of their abnormal equity returns and market-based measures of systemic risk. We discuss some potential regulatory responses, including treating the two sectors holistically, recognizing the implications for risk propagation and amplification, and exploring new ways to internalize the costs of systemic risk. |
| Keywords: | nonbank financial intermediaries; nonbanks; shadow banking; bank regulation; regulatory arbitrage; systemic risk; credit lines; derivatives margin |
| JEL: | G01 G21 G23 G28 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:98820 |
| By: | Michael Junho Lee; Antoine Martin; Robert M. Townsend |
| Abstract: | How might modern settlement systems with distributed ledger technology achieve zero settlement risk? We consider the design of settlement systems that satisfies two integral features: information-leakage proof and zero settlement risk. Legacy settlement systems partition private information but are vulnerable to settlement fails. A token system with dynamic ownership representation, or a dynamic ledger, can be designed to achieve both, as long as it employs a protocol that enforces two restrictions: programs must be immediately implemented and must involve transactions based on verifiable claims. We show how such a system can support various arrangements, including insurance, derivatives, collateralized loans, and securitization. |
| Keywords: | tokenization; programmability; settlement risk; financial architecture |
| JEL: | G19 D86 D47 G29 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:98894 |
| By: | Maxim Bichuch; Zachary Feinstein |
| Abstract: | Empirically, the prevailing market prices for liquidity tokens of the constant product market maker (CPMM) -- as offered in practice by companies such as Uniswap -- readily permit arbitrage opportunities by delta hedging the risk of the position. Herein, we investigate this arbitrage opportunity by treating the liquidity token as a derivative position in the prices of the underlying assets for the CPMM. In doing so, not dissimilar to the Black-Scholes result, we deduce risk-neutral pricing and hedging formulas for these liquidity tokens. Furthermore, with our novel pricing formula, we construct a method to calibrate a volatility to data which provides an updated (non-market) price which would not permit arbitrage if quoted by the CPMM. We conclude with a discussion of novel AMM designs which would bring the pricing of liquidity tokens into the modern financial era. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.11339 |