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on Payment Systems and Financial Technology |
| By: | Duk Gyoo Kim (Yonsei University); Ohik Kwon (Korea University); Seungduck Lee (Sungkyunkwan University) |
| Abstract: | This study investigates the public demand for retail Central Bank Digital Currency (CBDC) and its implications for financial intermediation by focusing on its potential substitution effects on existing digital payment methods and viability as a store of value. Using an information-provision survey experiment, we analyze public responses to technically various CBDC issuance types, including online and offline applications and a physical card type, with and without interest payments. The survey experiment finds that, while CBDC design features do not significantly influence its demand as a payment method, offering positive interest payments can enhance its appeal as a store of value. Moreover, it indicates that payment practices and trust in central banks would have a greater impact on demand for CBDC than its technical design features. |
| Keywords: | CBDC, Privacy, Demand for CBDC, Issuance Type, Survey Experiment |
| JEL: | E41 E58 G11 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:yon:wpaper:2025rwp-274 |
| By: | Michael Barczay; Shafik Hebous; Fayçal Sawadogo; Jean-Francois Wen |
| Abstract: | Mobile money has become a central digital alternative to traditional banking in developing countries, yet several African governments have introduced taxes on mobile money transactions. We develop a model that characterizes how such taxes affect payment choices and generate excess burden. The model predicts that taxation reduces mobile money use, with elasticities shaped by access to substitutes and transaction costs: banked users substitute into formal alternatives, while unbanked users face higher effective costs, making the tax regressive. Taxation also induces substitution into cash, raising informality. We empirically test these predictions using cross-country survey data and novel transaction-level data from Cameroon, the Central African Republic, and Mali. Results show sharp declines in mobile money usage, with stronger responses among the banked. Unbanked and rural users bear a disproportionate burden. We use the empirical estimates to gauge the excess burden of the tax, which we quantify at 35% of revenue - highlighting its significant efficiency cost alongside its regressive impact. |
| Keywords: | mobile money tax, financial inclusion, transaction tax |
| JEL: | H27 O16 G20 E42 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12322 |
| By: | Jillian Mascelli; Megan Rodden |
| Abstract: | This paper analyzes the risks posed by future-state quantum computers, specifically the “harvest now decrypt later” (HNDL) risk. We review foundational concepts of quantum computing to address the present and ongoing threat of HNDL to currently protected data. We use the Bitcoin network as an illustrative example to study the implications of HNDL for distributed ledger cryptocurrency networks that rely upon traditional cryptography. We posit that while cryptocurrency distributed ledger network maintainers could successfully deploy post-quantum cryptography (PQC) mitigations to protect the network’s security and data integrity against a future-state quantum computer, data privacy of the network’s previously recorded transactions remains vulnerable against a future-state quantum computer due to HNDL. The difficulty in protecting data privacy lies in the risk that a bad actor can obtain a distributed ledger replica, harvest the data, and in the fullness of time reveal previously obfuscated and confidential data using a sufficiently powerful quantum computer. The authors highlight this gap in data privacy protection and note the shortage of mitigations for the data privacy risks associated with the HNDL threat within distributed ledger networks. |
| Keywords: | Payment networks; Distributed ledger; Technological innovation; Quantum; Peer-to-peer payments; Data privacy; Bitcoin |
| JEL: | E42 L86 M15 O32 O33 |
| Date: | 2025–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-93 |
| By: | Nicholas Economides (Stern School of Business, New York University, New York, NY, USA); Ioannis Lianos (Faculty of Laws, University College London, London, United Kingdom); Christos Makridis (Arizona State University) |
| Abstract: | We examine when interoperability should serve as a structural response to market concentration produced by scaling laws, network effects, and data driven complementarities and capabilities in the digital economy. Digital infrastructures such as operating systems, cloud platforms, payments, and AI systems exhibit superlinear returns to scale that interact with multi-sided feedback loops to generate dominant positions and persistent bottlenecks. However, interoperability can also dilute beneficial complementarities, create security and privacy risks, and in some cases weaken incentives to invest. The paper makes two contributions. First, we develop a conceptual framework that treats digital ecosystems as lattices of complementarities linking users, developers, data, and infrastructure. Scaling laws are empirical signatures of supermodular relationships. Interoperability becomes a lattice restructuring tool that selectively weakens complementarities that entrench market (economic) power while preserving those that support quality, safety, and innovation. Second, we pair this economic account with a comparative analysis of legal and institutional approaches to interoperability. Examples include telecom interconnection, the Microsoft antitrust cases, the EU Digital Markets Act and Data Act, digital health regulation in the EU and the US, and emerging sector specific regimes in blockchain and AI. This comparison clarifies how horizontal and vertical interoperability obligations distribute network (complex systems) complementarities across layers and how ex ante and ex post tools differ in their ability to reshape digital ecosystems. We also argue that interoperability has emerged in the EU as a broader legal principle enshrined across multiple areas of law, including competition law and digital regulation. In sum, we provide a unified view of interoperability as a family of interventions that determine which complementarities are internalized by a single platform and which are shared across rivals and customers. Effective policy requires aligning the locus of interoperability with the structure of complementarities and the risks of fragmentation. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:net:wpaper:2511 |
| By: | Roxana Khabazzadeh Moghadam |
| Abstract: | Almost fully isolated from global finance, Iran has turned to crypto-assets to bypass sanctions, building a parallel payment system outside traditional banking, tariff enforcement, and capital controls backed by its central bank. This parallel strategy foreshadows the opacity risks of a fragmented global finance. <p> Presque entièrement isolé de la finance mondiale, l’Iran s’est tourné vers les crypto-actifs pour contourner les sanctions, créant un système de paiement parallèle hors du système bancaire traditionnel, de l’application des droits de douane et des contrôles de capitaux garantis par sa banque centrale. Cette stratégie parallèle préfigure les risques d’opacité d’un système financier mondial fragmenté. |
| Date: | 2025–11–06 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:415 |
| By: | Mathilde Dufouleur |
| Abstract: | The pegging of stablecoins to currencies or commodities is designed to mitigate the price volatility of crypto-assets. Billed as stable, easy to use, anonymous and with low transaction costs, stablecoins offer an alternative to fiat currency that lies outside the authority of central banks. However, their use raises concerns over a possible loss of control over monetary policy. <p> L’adossement des stablecoins à une monnaie ou matière première vise à pallier la volatilité des crypto-actifs. Supposés stables, faciles d’utilisation, anonymes, avec de faibles coûts de transaction, ils constituent une alternative à la monnaie légale, en dehors de l’autorité monétaire centrale. Leur utilisation interroge sur une possible perte de contrôle de la politique monétaire. |
| Date: | 2025–11–06 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:416 |
| By: | Constanza Martínez-Ventura; Ligia Alba Melo-Becerra |
| Abstract: | Este estudio analiza los factores que determinan la adopción de las billeteras móviles y otros servicios de pago en Colombia. Se utilizan modelos de econometría espacial para evaluar la heterogeneidad territorial usando datos departamentales, y técnicas de Machine Learning (Decision Tree y Random Forest) para identificar patrones individuales a partir de microdatos. Los resultados evidencian una alta heterogeneidad territorial, asociada a la cobertura de internet, educación y condiciones económicas. A nivel individual, la adopción depende principalmente del ingreso, la edad, el género y la percepción de los individuos sobre el sistema financiero. Si bien los productos tradicionales como la tarjeta débito presentan barreras de acceso operativas y culturales, las billeteras móviles muestran mayor adopción entre jóvenes con familiaridad digital y disposición al uso de nuevas tecnologías. *****ABSTRACT: This study analyzes the factors that determine the adoption of mobile wallets and other payment services in Colombia. Spatial econometric models are used to assess regional heterogeneity using regional data, and machine learning techniques (Decision Tree and Random Forest) are applied to identify individual-level patterns based on microdata. The results reveal significant regional heterogeneity, associated with internet coverage, education, and economic conditions. At the individual level, adoption is primarily influenced by income, age, gender, and individuals’ perceptions of the financial system. While traditional financial products such as debit card face operational and cultural barriers, mobile wallets show higher adoption among younger users who are digitally literate and open to using new technologies. |
| Keywords: | Billeteras móviles, instrumentos de pago, econometría espacial, machine learning, Mobile wallets, payment instruments, spatial econometrics |
| JEL: | C23 C40 G20 G50 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:borrec:1339 |
| By: | Alex Nery Caetité; Renato Dias de Brito Gomes |
| Abstract: | This study assesses the effects of a sequence of acquisitions in the investment platform market on charged commissions and investor returns. The results reveal that platform commissions increase approximately 100 days after the concentration event, remaining on average 0.33 pp higher for platforms involved in acquisitions (treatment) compared with those not involved (control). As commissions increase, issuers subsequently reduce the yield on the securities. The incidence on issuers and investors is, however, asymmetric, with issuers absorbing around 85% of the additional distribution cost. This impact is mitigated by greater issuer concentration: the higher the intraplatform concentration, the smaller the reduction in investor returns resulting from the increase in commissions. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bcb:wpaper:641 |
| By: | Vitaly M. Bord; Agnes Kovacs; Patrick Moran |
| Abstract: | In the United States, credit card companies frequently use machine learning algorithms to proactively raise credit limits for borrowers. In contrast, an increasing number of countries have begun to prohibit credit limit increases initiated by banks rather than consumers. In this paper, we exploit detailed regulatory micro data to examine the extent to which bank-initiated credit limit increases are directed towards individuals with revolving debt. We then develop a model that captures the costs and benefits of regulating proactive credit limit increases, which we use to quantify their importance and evaluate the implications for household well-being. |
| Keywords: | Algorithmic lending; Behavioral finance; Consumer protection; Credit cards; Credit limit increases; Financial regulation |
| JEL: | D14 D18 D91 G21 G28 G51 L51 |
| Date: | 2025–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-88 |
| By: | Yasmin (Department of Sharia Economics, Faculty of Islamic Economics and Business, Islamic State University (UIN) Sunan Kalijaga); Muhammad Ali Mustofa (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada); Amirullah Setya Hardi (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: | The nexus between financial inclusion, income inequality, and poverty remains debated, especially in developing economies with diverse regional contexts. This study examines the impact of financial inclusion on inequality and poverty across 33 Indonesian provinces using panel data. We estimate Fixed-Effects and Generalized Method of Moments (GMM) models to address unobserved heterogeneity and potential endogeneity. Financial inclusion is proxied by deposits per capita, while key outcomes are provincial income inequality and poverty rates. Results show a significant negative association between financial inclusion and both inequality and poverty. Regional heterogeneity is evident: the poverty-reducing effects of financial inclusion are stronger in Eastern Indonesia than in the more developed Western region. These findings highlight the need for region-specific policies that expand affordable financial access, strengthen financial literacy, and deepen financing for micro, small, and medium enterprises (MSMEs) to support inclusive growth. Future research should assess the roles of fintech and Islamic finance, evaluate how financial inclusion shapes MSME performance, and rigorously examine the effectiveness of Indonesia’s National Strategy for Financial Inclusion to inform progress toward the Sustainable Development Goals. |
| Keywords: | Financial Inclusion, Income Inequality, Poverty, Fixed-Effect Model, Generalized Method of Moments (GMM) |
| JEL: | G20 D63 I32 C23 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:gme:wpaper:202503005 |
| By: | Grigorios Rapos and Stylianos Fountas (Department of Economics, University of Macedonia) |
| Abstract: | This study investigates the presence of contagion between Bitcoin and four traditional assets (stocks, bonds, gold, and the U.S. dollar exchange rate) over the period 2015-2024. By implementing a framework that combines the DCC-GARCH specification and a time-varying causal inference methodology, we investigate periods of financial contagion. Overall, our findings support that Bitcoin remains weakly connected to the global financial markets. Our main results are as follows: First, among all assets, Bitcoin significantly Granger causes only the U.S. dollar exchange rate during the post-2021 sample period. Second, Bitcoin is Granger caused by the stock market and the US dollar exchange rate. Third, there is evidence for rare contagion episodes running from Bitcoin to the U.S. dollar exchange rate, while there is no evidence of contagion from Bitcoin to all other assets (stocks, bonds, and gold). Fourth, sporadic contagion also applies from the stock market to Bitcoin, mostly in May 2022. Our evidence implies that Bitcoin may be used as a useful portfolio diversification instrument. |
| Keywords: | Bitcoin; Contagion; Time-varying causality; DCC-GARCH. |
| JEL: | C32 C58 G10 G15 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mcd:mcddps:2025_02 |
| By: | Riad Benahmed; Claire Brousse; Enda Palazzeschi |
| Abstract: | In 2024, US authorities authorised the listing and trading of the first crypto-asset-backed exchange-traded funds. These regulated financial products mean that institutional investors, banks and hedge funds are able to play a more significant role in the US crypto-asset markets, which may create risks to financial stability. <p> En 2024, les autorités américaines ont autorisé la mise sur le marché des premiers fonds indiciels cotés en bourse adossés à des crypto-actifs. Ces produits financiers réglementés ont permis aux investisseurs institutionnels, aux banques et aux hedge funds de jouer un plus grand rôle sur les marchés des crypto-actifs aux États-Unis, ce qui peut engendrer des risques pour la stabilité financière. |
| Date: | 2025–12–19 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:424 |
| By: | Marc Rysman; Shuang Wang; Krzysztof Wozniak |
| Abstract: | We use consumer panel scanner data to examine households' payment choices, a new application of such data. In particular, we study the long-term shift towards payment cards, as well as the role of transaction size in determining choices. We find that idiosyncratic household preferences are a key driver of payment choice. Our estimates suggest that transaction size, while important, may have a smaller effect on payment choice than previously thought, and that the effect varies substantially across households. Our results further suggest that idiosyncratic household preferences evolve slowly over time, explaining only a third of the increase in card use over the seven-year period in our data. Taken together, our findings have potential policy implications not just for the adoption of new methods such as instant payments, but also around potential costs to households from sunsetting older payment methods such as checks. |
| Keywords: | Credit Cards; Heterogeneity; Households; Panel Data; Payment Choice |
| Date: | 2025–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-96 |
| By: | Rania Fakhet (UA - Université d'Artois); Manel Hamouda (EDC - EDC Paris Business School) |
| Abstract: | Abstract: This research aims to determine the factors influencing the intention to use chatbots to make online complaints. The conceptual framework is based on an extended version of the Technology Acceptance Model (TAM), linking the intention to use chatbots with several potential determinants. The empirical study was conducted on a sample of active users of the Facebook Messenger application. The results analysis shows that perceived usefulness is the most relevant indicator for explaining the intention to use chatbots as a complaints channel. The study also reveals that intention to use is significantly influenced by attitude towards chatbots and their ability to resolve problems. In the light of these findings several key decision factors could be provided to managers, and more specifically to customer service managers, in order to successfully deploy a chatbot likely to better manage customer complaints online. |
| Abstract: | Résumé : Cette recherche vise à déterminer les facteurs influençant l'intention d'usage des chatbots pour effectuer des réclamations en ligne. Le cadre conceptuel est basé sur une version étendue du modèle d'acceptation des technologies (TAM), mettant en relation l'intention d'usage des chatbots avec plusieurs déterminants potentiels. L'étude empirique a été menée auprès d'un échantillon d' utilisateurs actifs de l'application Facebook Messenger. L'analyse des résultats obtenus, souligne que l'utilité perçue est l'indicateur le plus pertinent pour expliquer l'intention d'usage des chatbots comme canal de réclamation. L'étude révèle, par ailleurs, que l'intention d'usage est fortement influencée par l'attitude envers les chatbots et leur capacité de résolution des problèmes. A la lumière de ces résultats, plusieurs des éléments de décision peuvent être fournis aux managers et plus particulièrement aux responsables des services clients des entreprises afin de mettre en œuvre avec succès un chatbot permettant de mieux gérer les réclamations des clients en ligne. |
| Keywords: | Artificial Intelligence, Chatbots, TAM, Customer service, Online complaints, Intelligence Artificielle, Service client, Réclamations en ligne, Intelligence Artificielle Chatbots TAM Service client Réclamations en ligne Artificial Intelligence Chatbots TAM Customer service Online complaints, Réclamations en ligne Artificial Intelligence |
| Date: | 2024–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05325551 |
| By: | Jin-Wook Chang; Jacob Dice; Shengwu Du; Adam Flury; Sam Jerow; Seung Jung Lee; Stacey L. Schreft; Craig Vandre |
| Abstract: | This paper examines cyber vulnerabilities across the 100 largest US banks, non-bank financial institutions (NBFIs), and their third-party service providers. Our analysis, based on a proprietary cyber risk analytics model, shows NBFIs exhibit greater cyber vulnerabilities than banks, though banks face larger relative losses from routine incidents. We identify third-party service providers as a hidden cyber fault line in the financial system, often having greater vulnerabilities than the institutions they serve and creating systemic risks. Scenario analyses of catastrophic cyber events targeting these providers reveal potential losses up to about 60 times larger than routine incidents for both large banks and large NBFIs, with business interruptions driving most losses. Our findings highlight the need for a holistic cyber risk management approach addressing both individual vulnerabilities and systemic risks from interconnectedness in the financial system. |
| Keywords: | Banks; Nonbank Financial Institutions (NBFIs); Third-Party Service Providers; Cyber Vulnerabilities; Cybersecurity; Scenario Analysis |
| JEL: | C15 G20 |
| Date: | 2025–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-103 |
| By: | Traversa, Marina; Vuillemey, Guillaume |
| Abstract: | We show that adverse selection is a key determinant of banking market structure. Using data on US bank branches over 1981-2016, we study banks' decisions to expand or contract geographically. First, banks are more likely to expand in counties that are similar, in terms of industry shares, to those in which they already have branches. Second, when contracting, banks are more likely to close or sell branches in similar areas. These results suggest that banks value diversification, but that informational barriers prevent them from achieving optimal scale. These findings have implications for banking competition and the rise of fintechs. |
| Keywords: | Banks, Barriers To Entry, Branching, Acquisitions, Diversification, Adverse Selection |
| JEL: | G21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:333924 |
| By: | Stefano Caselli, Marta Zava |
| Abstract: | The study examines the structure, functioning, and strategic implications of financial ecosystems across four European countries—France, Sweden, the United Kingdom, and Italy—to identify institutional best practices relevant to the ongoing transformation of Italy’s financial system. Building on a comparative analysis of legislation and regulation, taxation, investor bases, and financial intermediation, the report highlights how distinct historical and institutional trajectories have shaped divergent models: the French dirigiste system anchored by powerful state-backed institutions and deep asset management pools; the Swedish social-democratic ecosystem driven by broad household equity participation, tax efficient savings vehicles, and equity-oriented pension funds; and the British liberal model, characterized by deep capital markets, strong institutional investor engagement, and globally competitive listing infrastructure. In contrast, Italy remains predominantly bank-centric, with fragmented institutional investment, limited retail equity participation, underdeveloped public markets, and a structural reliance on domestic banking channels for corporate finance. |
| Keywords: | financial ecosystems; capital markets; institutional investors; household savings; taxation; IPO markets; SME finance; European financial integration; Savings and Investments Union. |
| JEL: | G10 G18 G23 G28 O16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp25261 |
| By: | Paula Sempere (ESTUDIANTE DE MÁSTER EN PSICOLOGÍA GENERAL SANITARIA EN LA UNIVERSIDAD EUROPEA DE MADRID); Raquel Pantoja (BANCO DE ESPAÑA) |
| Abstract: | El objetivo de este documento es exponer el concepto y alcance del neuromarketing, una disciplina que combina neurociencia y marketing con el propósito de conocer el comportamiento, las emociones y la toma de decisiones de los consumidores ante diversos estímulos de marketing. Esta disciplina surge debido a la necesidad de superar las limitaciones del marketing tradicional, pues se había quedado obsoleto y no permitía a las empresas destacar en un mercado competitivo y globalizado. Así, el neuromarketing se centra no tanto en el producto, sino en las necesidades y preferencias de los consumidores para crear productos más exactos mediante la recopilación de datos a través de medidas conscientes (como cuestionarios o encuestas) e inconscientes (por ejemplo, la electroencefalografía o el eye tracking). El neuromarketing puede aplicarse en diversas áreas de interés como en la publicidad o el precio del producto. En este documento nos centraremos en su aplicación al efectivo (el medio de pago más utilizado mundialmente), para conseguir series de billetes atractivas y seguras, mediante la adecuación de los elementos de diseño y seguridad de los billetes a las preferencias y necesidades del público. |
| Keywords: | neuromarketing, neurociencia, marketing, consumidor, producto, efectivo, billetes |
| JEL: | D49 D87 E42 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2525 |
| By: | Zhang, Yaxin |
| Abstract: | Financial literacy has emerged as a critical determinant of economic stability, mobility, and resilience, yet access to formal financial education in U.S. high schools remains uneven and largely discretionary. This paper examines the case of Massachusetts—a state that consistently ranks first in overall educational performance but receives failing marks for financial literacy—to assess whether optional, non-mandated approaches to personal finance education can deliver equitable outcomes. Drawing on national empirical literature, state-issued policy reports, and a localized case study, this paper argues that policy optionality is the central mechanism through which financial literacy efforts in the Commonwealth have stagnated and declined. Indeed, this paper further concludes that a standalone financial literacy graduation requirement represents the most effective and evidence-based mechanism for translating existing efforts into universal access, particularly as the Commonwealth reconsiders graduation frameworks in the post-MCAS era. |
| Date: | 2025–09–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:vgk9p_v1 |
| By: | James Robinson (University of Chicago) |
| Keywords: | Prosperity; institutions |
| JEL: | O11 O43 |
| Date: | 2025–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:ris:nobelp:021910 |
| By: | Akcan, Melis; Groep, David (RS: FSE DACS, Dept. of Advanced Computing Sciences); Ritzen, Jo (Mt Economic Research Inst on Innov/Techn, RS: GSBE MGSoG, RS: UNU-MERIT Theme 3); Rounding, Nicholas (ROA / Health, skills and inequality, RS: GSBE other - not theme-related research) |
| Abstract: | This paper proposes a mission-oriented national strategy for strengthening cybersecurity and achieving digital sovereignty in the Netherlands for 2025–2035. It outlines an integrated framework across four pillars: national cyber resilience, sovereign digital procurement, innovation and ecosystem development, and societal capacity-building. Emphasizing European cooperation, secure-by-design principles, and strategic public investment, the strategy aims to reduce dependence on non-EU technologies, enhance deterrence capabilities, and support talent development. A phased implementation roadmap highlights concrete actions for government, industry, and academia to ensure long-term national security, economic resilience, and democratic integrity in an increasingly contested digital landscape |
| JEL: | H56 O38 L86 F52 |
| Date: | 2025–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025029 |
| By: | Daron Acemoglu (MIT) |
| Keywords: | Prosperity; institutions |
| JEL: | O11 O43 |
| Date: | 2025–06–04 |
| URL: | https://d.repec.org/n?u=RePEc:ris:nobelp:021906 |
| By: | James Robinson (University of Chicago) |
| Abstract: | Interview with the 2024 economic sciences laureate James A. Robinson, recorded on 6 December 2024 during Nobel Week in Stockholm, Sweden. |
| Keywords: | Prosperity; institutions |
| JEL: | O11 O43 |
| Date: | 2024–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:ris:nobelp:021911 |
| By: | Jean Xiao Timmerman |
| Abstract: | This paper examines the evolution of artificial intelligence (AI) patent rates (i.e., the number of AI patents/number of firms of the same type) and concentration metrics (i.e., the Herfindahl-Hirschman Index (HHI) and Gini coefficient) among financial market participants from 2000 to 2020. It documents the historical trajectories of AI innovation for regulated banking entities and less-regulated firms, revealing that nonfinancial companies exhibit the highest baseline AI patent rate, while banks show the highest growth in AI patent rate over time. Banks have the highest HHI, and nonfinancial companies have the highest Gini coefficient, suggesting that a small number of banks dominate AI innovation and the distribution of AI innovation at nonfinancial firms � though higher in number � is highly skewed toward a subset of players. These findings indicate that the AI technological gap between small and large banks may be widening and the diversity of nonfinancial companies serving as third-party AI service providers may be limited. |
| Keywords: | Artificial intelligence; Banking; Financial innovation; Patents; Regulatory perimeter; Technological change |
| JEL: | G21 G23 G28 O31 O33 |
| Date: | 2025–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-104 |
| By: | Simon Johnson (MIT) |
| Keywords: | Prosperity; institutions |
| JEL: | O11 O43 |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ris:nobelp:021908 |
| By: | Daron Acemoglu (MIT) |
| Abstract: | Interview with the 2024 economic sciences laureate Daron Acemoglu, recorded on 6 December 2024 during Nobel Week in Stockholm, Sweden. |
| Keywords: | Prosperity; institutions |
| JEL: | O11 O43 |
| Date: | 2024–12–06 |
| URL: | https://d.repec.org/n?u=RePEc:ris:nobelp:021907 |
| By: | Kristian S. Blickle; Cecilia Parlatore |
| Abstract: | Banks must extract useful signals of a potential borrower’s quality from a large set of possibly informative characteristics when making lending decisions. A model that speaks to how banks specialize in lending to an industry in order to better extract signals from data, can potentially be applied to a number of real-world scenarios. In this post, we apply lessons from such a model to a topic of timely relevance in economics: job market recommendation letters. Institutions looking to hire new economists must evaluate PhD applicants based on limited and often noisy signals of future performance, including letters of recommendation from these applicants’ advisors or co-authors. Using insights from our model, we argue that the value of these letters depends on who reads them. |
| Keywords: | specialized lending; recommendation letters |
| JEL: | G20 G21 |
| Date: | 2025–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:102235 |