|
on Payment Systems and Financial Technology |
|
Issue of 2021‒03‒15
37 papers chosen by |
| By: | Yulin Liu; Luyao Zhang; Yinhong Zhao |
| Abstract: | Bitcoin is a peer-to-peer electronic payment system that popularized rapidly in recent years. Usually, we need to query the complete history of Bitcoin blockchain data to acquire variables with economic meaning. This becomes increasingly difficult now with over 1.6 billion historical transactions on the Bitcoin blockchain. It is thus important to query Bitcoin transaction data in a way that is more efficient and provides economic insights. We apply cohort analysis that interprets Bitcoin blockchain data using methods developed for population data in social science. Specifically, we query and process the Bitcoin transaction input and output data within each daily cohort, which enables us to create datasets and visualizations for some key indicators of Bitcoin transactions, including the daily lifespan distributions of spent transaction output (STXO) and the daily age distributions of the accumulated unspent transaction output (UTXO). We provide a computationally feasible approach to characterize Bitcoin transactions, which paves the way for the future economic studies of Bitcoin. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.00173&r=all |
| By: | MOTOHASHI Kazuyuki |
| Abstract: | Digitalization has a transformative impact on innovation in firms and markets, and new business models based on digital platforms are disrupting traditional industries. However, understanding the impact of digital platforms on the supply side of manufacturing industries, where Japan's industrial competitiveness is based, is insufficient. This paper conducts and discusses a review of existing studies on digital platforms and the relationship between digitalization and Japan's industrial competitiveness. A platform business can be categorized into three groups, type 1 (internet platformer type), type 2 (producer ecosystem type) and type 3 (IoT data-use type), depending on the existence of direct and/or indirect network effects on the producer and consumer sides of the platform. We have compared these three types of platforms together with "pipeline businesses" (with a traditional supply chain model) regarding the impact of digitalization on each business model. Our analysis found that digitalization does not directly affect the existing pipeline model, as is shown in the automotive industry, for example. However, the convergence of virtual and physical environments (CPS: Cyber-Physical System) redefines the boundaries of existing markets, which introduces a chance of existing pipeline models being displaced by new integrated services, based on platform models. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:polidp:21001&r=all |
| By: | Ni, Xinwen; Härdle, Wolfgang Karl; Xie, Taojun |
| Abstract: | Cryptocurrencies’ values often respond aggressively to major policy changes, but none of the existing indices informs on the market risks associated with regulatory changes. In this paper, we quantify the risks originating from new regulations on FinTech and cryptocurrencies (CCs), and analyse their impact on market dynamics. Specifically, a Cryptocurrency Regulatory Risk IndeX (CRRIX) is constructed based on policy-related news coverage frequency. The unlabeled news data are collected from the top online CC news platforms and further classified using a Latent Dirichlet Allocation model and Hellinger distance. Our results show that the machine-learning-based CRRIX successfully captures major policy-changing moments. The movements for both the VCRIX, a market volatility index, and the CRRIX are synchronous, meaning that the CRRIX could be helpful for all participants in the cryptocurrency market. The algorithms and Python code are available for research purposes on www.quantlet.de. |
| Keywords: | Cryptocurrency,Regulatory Risk,Index,LDA,News Classification |
| JEL: | C45 G11 G18 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:irtgdp:2020013&r=all |
| By: | MARTENS Bertin (European Commission – JRC) |
| Abstract: | This paper starts with some basic economic characteristics of data that distinguish them from ordinary goods and services, including non-excludability and non-rivalry, economies of scope in data re-use and aggregation, the social value of data and their role in generating network effects. It explores how these characteristics contribute to the emergence of large digital platforms that generate a combination of positive and negative welfare effects for society, including data-driven network effects. It distinguishes between lexicographic and probabilistic data-driven matching in networks. Both may lead to market "tipping". It emphasizes the social value of data and the positive and negative social externalities that may come with this. Platforms are necessary intermediaries to generate the social welfare or network externalities from data. However, the economic role of data-driven platforms is ambivalent. On the one hand, platforms enable society to benefit from positive externalities in data collection via economies of scale and scope in data aggregation of transactions and interactions across users, both firms and consumers. That gives them a privileged market overview that none of the individual users has. Platforms can use this information asymmetry to facilitate interaction and increase welfare for users. These data externalities attract users to the platform. On the other hand, data-driven network effects may result in monopolistic market power of platforms which they can use for their own benefit, at the expense of users. Any policy intervention that seeks to address the market power of online platforms requires careful balancing between these two poles. Finally, the paper briefly discusses ecosystems that leverage data to coordinate interactions between different platforms. |
| Keywords: | data, platforms, market power |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:decwpa:202009&r=all |
| By: | Snower, Dennis J.; Twomey, Paul |
| Abstract: | We identify an important feature of current digital governance systems: "third-party funded digital barter": consumers of digital services get many digital services for free (or under- priced) and in return have personal information about themselves collected for free. In addition, the digital consumers receive advertising and other forms of influence from the third parties that fund the digital services. The interests of the third-party funders are not well-aligned with the interests of the digital consumers. This fundamental flaw of current digital governance systems is responsible for an array of serious problems, including inequities, inefficiencies, manipulation of digital consumers, as well as dangers to social cohesion and democracy. We present four policy guidelines that aim to correct this flaw by shifting control of personal data from the data aggregators and their third-party funders to the digital consumers. The proposals cover "official data" that require official authentication, "privy data" that is either generated by the data subjects about themselves or by a second parties, and "collective data." The proposals put each of these data types under the individual or collective control of the data subjects. There are also proposals to mitigate asymmetries of information and market power. |
| Keywords: | Digital governance,digital services,personal data,digital service providers,market power,advertising,preference manipulation |
| JEL: | O33 P34 O35 O36 O38 H41 L41 L44 L51 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2178&r=all |
| By: | Kalda, Ankit; Loos, Benjamin; Previtero, Alessandro; Hackethal, Andreas |
| Abstract: | Using transaction-level data from two German banks, we study the effects of smartphones on investor behavior. Comparing trades by the same investor in the same month across different platforms, we find that smartphones increase purchasing of riskier and lottery-type assets and chasing past returns. After the adoption of smartphones, investors do not substitute trades across platforms and buy also riskier, lottery-type, and hot investments on other platforms. Using smartphones to trade specific assets or during specific hours contributes to explain our results. Digital nudges and the device screen size do not mechanically drive our results. Smartphone effects are not transitory |
| Keywords: | fintech,investor behavior,financial risk-taking,lottery-type assets,investment biases,trend chasing,spillover effects |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:303&r=all |
| By: | ; Claire Greene; Oz Shy |
| Abstract: | Using a representative sample of the U.S. adult population, we analyze which payment methods consumers use to pay other consumers (p2p) and how these choices depend on transaction and demographic characteristics. We additionally construct a random matching model of consumers with diverse preferences over the use of different payment methods for p2p payments. The random matching model is calibrated to the share of p2p payments made with cash, paper check, and electronic technologies observed from 2015 to 2019. We find about two thirds of consumers have a first p2p payment preference of cash. The remaining one third rank checks first. Approximately 93 percent of consumers rank electronic technologies second. Our empirical analysis finds that the most significant factors in determining the payment method used are the transaction value and the age and education of the payer. |
| Keywords: | consumer payment choice; person-to-person payments; electronic payments; mixed logit; machine learning; random matching |
| JEL: | D9 E42 |
| Date: | 2021–02–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:90081&r=all |
| By: | Janet Hua; Yu Zhu |
| Abstract: | This paper investigates how the introduction of an interest-bearing central bank digital currency (CBDC) that serves as a perfect substitute for bank deposits as an electronic means of payment affects monetary policy pass-through. When the deposit market is not fully competitive, the CBDC tends to weaken the pass-through of the interest on reserves. The interest on CBDC impacts the deposit market more directly compared with the interest on reserves. The CBDC rate can also have stronger pass-through to the loan market; however, the effect can be dampened by the policy on the interest on reserves. Therefore, coordination between the two policy rates is needed to effectively achieve policy goals. |
| Keywords: | Digital currencies and fintech; Monetary policy transmission |
| JEL: | E52 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:21-10&r=all |
| By: | Thume, Martina (Hochschule Niederrhein, University of Applied Science); Lange, Julia; Unkel, Martin (Fraunhofer Institute for Applied Information Technology FIT); Prange, Alexander; Schürmeyer, Maik |
| Abstract: | Traceability has become an important aspect in supply chain management, particularly in safety-sensitive industries like food or pharmaceuticals. At the same time, blockchain arose as an innovative technology that has created excitement about its potential applications. Aim of this research paper is to analyze the requirements of the main stakeholders along the supply chain regarding a blockchain-based traceability system. The supply chain is considered from agriculture to retail. The main result of this work is a specification framework, which consist of a supply chain process model describing activities relevant for food traceability, a collection of usage requirements formulated as data classes, a summary of technical requirements regarding data access, storage and processing, and interoperability requirements necessary to assure digital communication and permanent operability of the BBTS. Based on this, general application guidelines for digital information systems are derived and the blockchain technology is evaluated with regard to its potential in meeting requirements and challenges. A distinction between public and sensitive data appears to be necessary to assure traceability and trust in the supply chain. A two-part architecture involving a public permissioned blockchain network is proposed as the most promising basis for a digital traceability system in the food industry. |
| Date: | 2021–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:uyb64&r=all |
| By: | Andry Alamsyah; Yahya Peranginangin; Gabriel Nurhadi |
| Abstract: | The challenge of each organization is how they adapt to the shift of more complex technology such as mobile, big data, interconnected world, and the Internet of things. In order to achieve their objective, they must understand how to take advantage of the interconnected individuals inside and outside the organization. Learning organization continues to transform by listening and maintain the connection with their counterparts. Customer relationship management is an important source for business organizations to grow and to assure their future. The complex social network, where interconnected peoples get information and get influenced very quickly, certainly a big challenge for business organizations. The combination of these complex technologies provides intriguing insight such as the capabilities to listen to what the markets want, to understand their market competition, and to understand their market segmentation. In this paper, as a part of organization transformation, we show how a business organization mine online conversational in Twitter related to their brand issue and analyze them in the context of customer relationship management to extract several insights regarding their market. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.06051&r=all |
| By: | Ayten Kahya; Bhaskar Krishnamachari; Seokgu Yun |
| Abstract: | In the wake of financial crises, stablecoins are gaining adoption among digital currencies. We discuss how stablecoins help reduce the volatility of cryptocurrencies by surveying different types of stablecoins and their stability mechanisms. We classify different approaches to stablecoins in three main categories i) fiat or asset backed, ii) crypto-collateralized and iii) algorithmic stablecoins, giving examples of concrete projects in each class. We assess the relative tradeoffs between the different approaches. We also discuss challenges associated with the future of stablecoins and their adoption, their adoption and point out future research directions. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.01340&r=all |
| By: | Lin, Min-Bin; Khowaja, Kainat; Chen, Cathy Yi-Hsuan; Härdle, Wolfgang Karl |
| Abstract: | We investigate the relationship between underlying blockchain mechanism of cryptocurrencies and its distributional characteristics. In addition to price, we emphasise on using actual block size and block time as the operational features of cryptos. We use distributional characteristics such as fourier power spectrum, moments, quantiles, global we optimums, as well as the measures for long term dependencies, risk and noise to summarise the information from crypto time series. With the hypothesis that the blockchain structure explains the distributional characteristics of cryptos, we use characteristic based spectral clustering to cluster the selected cryptos into five groups. We scrutinise these clusters and find that indeed, the clusters of cryptos share similar mechanism such as origin of fork, difficulty adjustment frequency, and the nature of block size. This paper provides crypto creators and users with a better understanding toward the connection between the blockchain protocol design and distributional characteristics of cryptos. |
| Keywords: | Cryptocurrency,price,blockchain mechanism,distributional characteristics,clustering |
| JEL: | C00 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:irtgdp:2020027&r=all |
| By: | Nassim Dehouche |
| Abstract: | A reputation of high volatility accompanies the emergence of Bitcoin as a financial asset. This paper intends to nuance this reputation and clarify our understanding of Bitcoin's volatility. Using daily, weekly, and monthly closing prices and log-returns data going from September 2014 to January 2021, we find that Bitcoin is a prime example of an asset for which the two conceptions of volatility diverge. We show that, historically, Bitcoin allies both high volatility (high Standard Deviation) and high predictability (low Approximate Entropy), relative to Gold and S&P 500. Moreover, using tools from Extreme Value Theory, we analyze the convergence of moments, and the mean excess functions of both the closing prices and the log-returns of the three assets. We find that the closing price of Bitcoin is consistent with a generalized Pareto distribution, when the closing prices of the two other assets (Gold and S&P 500) present thin-tailed distributions. However, returns for all three assets are heavy tailed and second moments (variance, standard deviation) non-convergent. In the case of Bitcoin, lower sampling frequencies (monthly vs weekly, weekly vs daily) drastically reduce the Kurtosis of log-returns and increase the convergence of empirical moments to their true value. The opposite effect is observed for Gold and S&P 500. These properties suggest that Bitcoin's volatility is essentially an intra-day and intra-week phenomenon that is strongly attenuated on a weekly time-scale, and make it an attractive store of value to investors and speculators, but its high standard deviation excludes its use a currency. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.00395&r=all |
| By: | Raphael Auer; Cyril Monnet; Hyun Song Shin |
| Abstract: | We explore the economics and optimal design of "permissioned" distributed ledger technology (DLT) in a credit economy. Designated validators verify transactions and update the ledger at a cost that is derived from a supermajority voting rule, thus giving rise to a public good provision game. Without giving proper incentives to validators, however, their records cannot be trusted because they cannot commit to verifying trades and they can accept bribes to incorrectly validate histories. Both frictions challenge the integrity of the ledger on which credit transactions rely. In this context, we examine the conditions under which the process of permissioned validation supports decentralized exchange as an equilibrium, and analyze the optimal design of the trade and validation mechanisms. We solve for the optimal fees, number of validators, supermajority threshold and transaction size. A stronger consensus mechanism requires higher rents be paid to validators. Our results suggest that a centralized ledger is likely to be superior, unless weaknesses in the rule of law and contract enforcement necessitate a decentralized ledger. |
| Keywords: | digital currencies, money, distributed ledger, blockchain, coordination game, global game, consensus, market design |
| JEL: | C72 C73 D4 E42 G2 L86 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:924&r=all |
| By: | ; ; Paul Wong |
| Abstract: | Over the last few years, interest in the potential issuance of a general-purpose central bank digital currency (CBDC) has increased. Introducing and operating a CBDC would require actions by many stakeholders and not just the central bank. In view of the far-reaching implications of introducing a new form of money to the public, the decision cannot be taken lightly. This paper outlines foundational preconditions and proposes areas of work that may help achieve them prior to the possible implementation of a potential future general-purpose CBDC in the United States. These foundational preconditions include clear policy objectives, broad stakeholder support, a strong legal framework, robust technology, and readiness for market acceptance and adoption. |
| Date: | 2021–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2021-02-24-1&r=all |
| By: | Armelius, Hanna; Claussen, Carl Andreas; Hull, Isaiah |
| Abstract: | We explain why all CBDCs will need a ledger that keeps track of CBDC ownership regardless of whether they are “token-based”, “DLT-based” or “on a blockchain”; and regardless of how we define these terms. Consequently, token-based CBDCs appear not to have a greater capacity for providing payments that are peer-to-peer, offline or anonymous like cash than “account-based” CBDCs. |
| Keywords: | CBDC,Tokens,Offline |
| JEL: | E42 E51 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:231485&r=all |
| By: | Demary, Markus; Demary, Vera |
| Abstract: | A growing, but still small number of companies in Germany are supplying products and services based on the blockchain technology. Most of these are start-up companies and are headquartered in Berlin. Although a lot of them are focused on providing financial services, an increasing number of blockchain companies has started developing other blockchain-based services. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:82021&r=all |
| By: | David Van Dijcke (University of Michigan, Ann Arbor); Austin L. Wright (University of Chicago - Harris School of Public Policy) |
| Abstract: | We develop a novel approach for estimating spatially dispersed community-level participation in mass protest. This methodology is used to investigate factors associated with participation in the ‘March to Save America’ event in Washington, D.C. on January 6, 2021. This study combines granular location data from more than 40 million mobile devices with novel measures of community-level voting patterns, the location of organized hate groups, and the entire georeferenced digital archive of the social media platform Parler. We find evidence that partisanship, socio-political isolation, proximity to chapters of the Proud Boys organization, and the local activity on Parler are robustly associated with protest participation. Our research fills a prominent gap in the study of collective action: identifying and studying communities involved in mass-scale events that escalate into violent insurrection. |
| Keywords: | insurrections, protests, riots, collective action, big data, cellphone, mobile devices |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2021-13&r=all |
| By: | Iacoella, Francesco (UNU-MERIT); Tirivayi, Nyasha (UNU-MERIT, and UNICEF Innocenti RC) |
| Abstract: | This study investigates the role of mobile phone connectivity on HIV testing in sub-Saharan Africa. We make use of the novel and comprehensive OpencellID cell tower database, and DHS geocoded information for over 400,000 women in 28 Sub-Saharan African countries. We examine whether women's community distance from the closest cell-tower influences knowledge about HIV testing facilities and the likelihood of ever been tested for HIV. After finding a negative and significant impact of distance on our main outcomes, we investigate the mechanisms through which such effects might occur. Our analysis shows that proximity to a cell tower increases HIV-related knowledge as well as reproductive health knowledge. Similar results are observed when the analysis is performed at community level. Results suggest that the effect of mobile phone connectivity is channelled through increased knowledge of HIV, STIs, and modern contraceptive methods. Further analysis shows that cell phone ownership has an even larger impact on HIV testing and knowledge. This paper adds to recent literature on the impact of mobile-based HIV prevention schemes by showing through large-scale analysis that better mobile network access is a powerful tool to spread reproductive health knowledge and increase HIV awareness. |
| Keywords: | Technological change, mobile technology, public health, HIV, reproductive health |
| JEL: | O33 D83 I15 I18 |
| Date: | 2021–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2021010&r=all |
| By: | Golden, Brian (Central Bank of Ireland) |
| Abstract: | This letter examines the impact of a sudden surge in demand for cash in March, on money markets in general and Irish-resident Money Market Funds (MMFs) in particular. The immediate impact was felt across MMFs invested in money market debt issued by banks and companies. Liquidity declined in money markets while some investors in these funds redeemed their shares/units. In response, MMFs invested very cautiously in these securities in the following months. These effects are quite typical of what occurred in other key financial centres for MMFs and contributed to a sharp contraction in volumes in money markets. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:cbi:ecolet:09/el/20&r=all |
| By: | Francisco Javier de la Ballina Ballina; Silvia Cachero Martínez |
| Abstract: | El uso del Smartphone está transformando el proceso de compra en el comercio de tienda física. Esta vez la presión no viene por el coste o la eficiencia, sino de los clientes. Este tipo de comercio minorista también debe asumir el cambio en la experiencia de compra que supone la adopción de tecnologías digitales. Las nuevas App interactivas son las protagonistas de los primeros cambios en la experiencia de compra a través de la customización, especialmente como plataformas de promoción y de fidelización. Este trabajo expone los resultados del proceso de implementación de una App de Fidelización de una cadena de supermercados, mediante la investigación empírica de los datos de panel facilitados por la misma. Los resultados se centran en aspectos claves como: la secuencia temporal de uso, el apoyo necesario con incentivos promocionales, los cambios en la frecuencia de compra y en las compras totales por cliente, así como en la variación en la cifra de resultados económicos. |
| Keywords: | Supermercado, Smart, Tienda, Experiencia de Compra, App |
| JEL: | L81 D11 C81 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ovr:docfra:2102&r=all |
| By: | Demary, Markus; Demary, Vera |
| Abstract: | Many Asian start-up companies have specialized in blockchain technology. In particular, Hong Kong, Israel and Singapore have the highest blockchain company density in Asia. The determinants for a flourishing blockchain ecosystem are a business-friendly environment for start-ups and the availability of venture capital, while the effects of agglomeration are less pronounced in Asia than in Europe. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:102021&r=all |
| By: | Olivier Accominotti (LSE); Delio Lucena-Piquero (LEREPS); Stefano Ugolini (LEREPS) |
| Abstract: | This paper presents a detailed analysis of how liquid money market instruments -- sterling bills of exchange -- were produced during the first globalisation. We rely on a unique data set that reports systematic information on all 23,493 bills re-discounted by the Bank of England in the year 1906. Using descriptive statistics and network analysis, we reconstruct the complete network of linkages between agents involved in the origination and distribution of these bills. Our analysis reveals the truly global dimension of the London bill market before the First World War and underscores the crucial role played by London intermediaries (acceptors and discounters) in overcoming information asymmetries between borrowers and lenders on this market. The complex industrial organisation of the London money market ensured that risky private debts could be transformed into extremely liquid and safe monetary instruments traded throughout the global financial system. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.01558&r=all |
| By: | Yongqiang Meng (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, TJU - Tianjin University); Dehua Shen (TJU - Tianjin University); Xiong Xiong (TJU - Tianjin University); Jørgen Vitting Andersen (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper investigates the relations between multiple measures of investor sentiment and the returns, volatility, trading volume, and liquidity. Using both data outside and inside market, we find that the Bullishness from socio-finance model are significant related to future realized volatility and trading volume, similar to Tweet, which is thought to capture information of well-informed investors in Bitcoin market. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-03048777&r=all |
| By: | Sebastian Doerr; Leonardo Gambacorta; José María Serena Garralda |
| Abstract: | This paper reviews the use of big data and machine learning in central banking, leveraging on a recent survey conducted among the members of the Irving Fischer Committee (IFC). The majority of central banks discuss the topic of big data formally within their institution. Big data is used with machine learning applications in a variety of areas, including research, monetary policy and financial stability. Central banks also report using big data for supervision and regulation (suptech and regtech applications). Data quality, sampling and representativeness are major challenges for central banks, and so is legal uncertainty around data privacy and confidentiality. Several institutions report constraints in setting up an adequate IT infrastructure and in developing the necessary human capital. Cooperation among public authorities could improve central banks' ability to collect, store and analyse big data. |
| Keywords: | big data, central banks, machine learning, artificial intelligence, data science |
| JEL: | G17 G18 G23 G32 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:930&r=all |
| By: | Ren, Rui; Althof, Michael; Härdle, Wolfgang Karl |
| Abstract: | Cryptocurrencies are gaining momentum in investor attention, are about to become a new asset class, and may provide a hedging alternative against the risk of devaluation of fiat currencies following the COVID-19 crisis. In order to provide a thorough understanding of this new asset class, risk indicators need to consider tail risk behaviour and the interdependencies between the cryptocurrencies not only for risk management but also for portfolio optimization. The tail risk network analysis framework proposed in the paper is able to identify individual risk characteristics and capture spillover effect in a network topology. Finally we construct tail event sensitive portfolios and consequently test the performance during an unforeseen COVID-19 pandemic. |
| Keywords: | Cryptocurrencies,Network Dynamics,Portfolio Optimization,Quantile Regression,Systemic Risk,Financial Risk Meter |
| JEL: | C00 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:irtgdp:2020028&r=all |
| By: | Benti, Behailu Shiferaw; Haß, Dominik; Stadtmann, Georg |
| Abstract: | Regularly, free-to-play games use their own virtual currency for in-game store purchases. We analyze the money illusion phenomenon by examining free-to-playgames and their virtual currency exchange rate policies. We find that above pari exchange rates and advertising bonus packs instead of price discounts lead to money illusion on the side of the customer. Based on our findings, we derive managerial and policy implications. |
| Keywords: | Money illusion,free-to-play games,virtual currency exchange rate,price incentives,bonus pack versus price discount |
| JEL: | D18 L88 M37 Z28 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:euvwdp:422&r=all |
| By: | A. R. Baghirzade; B. Kushbakov |
| Abstract: | Nowadays there are a lot of creative and innovative ideas of business start-ups or various projects starting from a novel or music album and finishing with some innovative goods or website that makes our life better and easier. Unfortunately, young people often do not have enough financial support to bring their ideas to life. The best way to solve particular problem is to use crowdfunding platforms. Crowdfunding itself is a way of financing a project by raising money from a crowd or simply large number of people. It is believed that crowdfunding term appeared at the same time as crowdsourcing in 2006. Its author is Jeff Howe. However, the phenomenon of the national funding, of course, much older. For instance, the construction of the Statue of Liberty in New York, for which funds were collected by the people. Currently, the national project is financed with the use of the Internet. Author of the project in need of funding, can post information about the project on a special website and request sponsorship of the audience. Firstly, author selects the best crowdfunding platform for project requirements and sign in. then he or she creates and draws up the project. The project that is created must correspond to one of the categories available for selection (music, film, publishing, etc.). If you create brand new product, it is necessary to submit the draft-working prototype or sample product. A full list of design rules for a project can be viewed directly on the site of crowdfunding platform. While calculating the cost of project it is necessary to take into account the cost of realization the project, reward for your sponsors, moreover commission of payment systems and taxes. The project is considered successfully launched after it gets through moderation on website. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.05973&r=all |
| By: | Demary, Markus; Demary, Vera |
| Abstract: | Blockchain companies have sprung up all over Europe, at the forefront: Malta and Estonia. Compared to the sizes of their workforce, both countries have an outstanding number of blockchain companies and can easily compete with larger countries like Germany or France. The reason for this is a combination of having agglomerations, a good access to venture capital and an attractive framework for new companies. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:92021&r=all |
| By: | Nicolas Jacquemet (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Alexander James (University of Alaska [Anchorage]); Stéphane Luchini (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); James Murphy (University of Alaska [Anchorage]); Jason Shogren (UW - University of Wyoming) |
| Abstract: | This study explores whether an oath to honesty can reduce both shirking and lying among crowd-sourced internet workers. Using a classic coin-flip experiment, we first confirm that a substantial majority of Mechanical Turk workers both shirk and lie when reporting the number of heads flipped. We then demonstrate that lying can be reduced by first asking each worker to swear voluntarily on his or her honor to tell the truth in subsequent economic decisions. Even in this online, purely anonymous environment, the oath significantly reduced the percent of subjects telling "big" lies (by roughly 27%), but did not affect shirking. We also explore whether a truth-telling oath can be used as a screening device if implemented after decisions have been made. Conditional on flipping response, MTurk shirkers and workers who lied were significantly less likely to agree to an ex-post honesty oath. Our results suggest oaths may help elicit more truthful behavior, even in online crowd-sourced environments |
| Keywords: | Experimental Economics,Honesty,Solemn Oath,Mechanical Turk,Lying,Shirking |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-03131518&r=all |
| By: | Louis Wiart; Bruno Lefevre |
| Abstract: | Cet article cherche à caractériser le processus de territorialisation des activités d’Alibaba dans le monde, à travers la construction de hubs logistiques en Asie (Chine, Malaisie), en Europe (Belgique) et en Afrique (Rwanda, Éthiopie). Les implantations d’Alibaba se traduisent par la signature d’accords avec les pouvoirs publics locaux dans le cadre de l’initiative eWTP (Electronic World Trade Platform), un programme de coopération public-privé lancé en 2016 et adossé aux services d’e-commerce du groupe chinois. Dans cette recherche, nous entendons montrer la manière dont le développement international d’Alibaba s’effectue par la mobilisation d’écosystèmes économiques locaux, eux-mêmes intégrés et articulés à la stratégie globale du groupe industriel, au sein desquels se construisent des rapports de force matériels et symboliques. |
| Keywords: | Alibaba; e-commerce; plateforme; hub logistique; écosystème; industrie du numérique |
| Date: | 2020–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/318802&r=all |
| By: | Federico Etro |
| Abstract: | A marketplace such as Amazon hosts many products by third party sellers and acts as a first party or private label retailer. Assuming an advantage of Amazon in logistics and of sellers in marketing, we investigate whether entry by Amazon is excessive from the point of view of consumers. With competitive sellers, entry may be either overprovided or underprovided, but the incentives of Amazon and consumers are correctly aligned for a family of power surplus functions (generating for instance linear, isoelastic and loglinear demands). Competition for customers with other retailers reduces commissions and prices preserving the efficiency result. Market power by sellers increases (reduces) the incentives to retail private label (first party) products, and generates a bias toward underprovision of entry. Similar results apply after extending the analysis to delivery fulfilment by the marketplace, product differentiation with direct price competition on the platform, and dynamic incentives to invest and launch copycat products. |
| Keywords: | Entry, product selection, platform competition, business models, intermediaries. |
| JEL: | L1 L4 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2020_20.rdf&r=all |
| By: | Hans K. Hvide; Tom G. Meling; Magne Mogstad; Ola L. Vestad (Statistics Norway) |
| Abstract: | We study the effects of broadband internet use on the portfolio selection of individual investors. A public program in Norway provides plausibly exogenous variation in internet use. Our instrumental variables estimates show that internet use causes a substantial increase in stock market participation, driven primarily by increased fund ownership. Existing investors increase the fraction of their portfolios held in funds and do not increase their trading activity in stocks. Access to fast internet seems to induce individual investors to make better financial decisions and hence leads to a “democratization of finance”. |
| Keywords: | equity market participation; investor welfare; portfolio selection; stock market participation. |
| JEL: | D83 G11 J2 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:946&r=all |
| By: | Federico Etro |
| Abstract: | We analyze device-funded and ad-funded platforms with differentiated ecosystems supporting apps provided under monopolistic competition. The incentives of a device-funded platform in investing in app curation, introducing and pricing its own apps and setting commissions on in-app purchases of external apps are largely aligned with those of consumers, while this is not necessarily the case for the ad-funded platform. In particular, consumers gain from a positive commission set by the device-funded platform because this implies a comparatively lower price of the device, and platform’s apps are introduced and priced internalizing the impact on consumer welfare, perfectly in models of horizontal differentiation and partially in models of vertical differentiation. |
| Keywords: | Platforms, business models, monopolistic competition, horizontal differentiation, vertical differentiation. |
| JEL: | L1 L4 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2020_19.rdf&r=all |
| By: | Xu, Feng C. |
| Abstract: | The information technology (IT) revolution has shown widespread and massive development in communications and social networks, leading to the use of this technology daily. As a result, a number of Accounting features were added and turned into an E-version from a traditional version. This paper submits a study of the social network's role in growing the quality of accounting information by evaluating it according to distributed questionnaires. The researchers distributed 20 questionnaires on 20 academic persons and analyzed the results via excel tools, and the main result of this paper is that the Social networks have a big effect on the accounting information because they will build a good background for the accountants. |
| Date: | 2021–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:pcwf9&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Mouna Amari (University of Sfax, Tunisia); Anis Jarboui (University of Sfax, Tunisia); Khaireddine Mouakhar (Normandy Business School, France) |
| Abstract: | This study examines linkages between information and communication technology (ICT) dynamics, inequality and poverty in order to establish critical masses of poverty and inequality that should not be exceeded in order for ICT dynamics to promote gender inclusive education in 57 developing countries for the period 2012-2016. Poverty is measured with the poverty headcount ratio at national poverty lines (% of the population) while inequality is proxied by the Gini coefficient, the Atkinson index and the Palma ratio. The ICT dynamics are measured with ‘internet access in school’, ‘virtual social network’, ‘personal computers’ ‘mobile phone penetration’, ‘internet penetration’ and ‘fixed broadband subscriptions’. The empirical evidence is based on interactive Generalized Method of Moments estimators from which thresholds are computed contingent on the validity of tested hypotheses. First, the Gini coefficient should not exceed 0.5618 in order for ‘internet access in school’ to positively affect inclusive education. Second, the poverty headcount ratio at national poverty lines (% of the population) should remain below 33.6842% in order for ‘internet access in school’ to favorably influence inclusive education. Third, the Palma ratio should not exceed 3.3766 in order for internet penetration to favorably affect inclusive education. Fourth, for personal computers to increase inclusive education, the Gini coefficient, Palma ratio and poverty headcount (% of the population) should not exceed 0.4781, 3.5294 and 17.7272, respectively. The study confirms the significant role technological deepening plays in advancing inclusive education by means of policies that reduce poverty and income inequality, with potentially wider applicability to other developing economies. The study has provided poverty and inequality levels that should not be exceeded in order for personal computers, internet penetration and ‘internet access in school’ to promote gender inclusive education. |
| Keywords: | Inclusive, Education, Inequality, Technology, Thresholds |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:21/012&r=all |
| By: | Keilbar, Georg; Zhang, Yanfen |
| Abstract: | This paper aims to model the joint dynamics of cryptocurrencies in a nonstationary setting. In particular, we analyze the role of cointegration relationships within a large system of cryptocurrencies in a vector error correction model (VECM) framework. To enable analysis in a dynamic setting, we propose the COINtensity VECM, a nonlinear VECM specification accounting for a varying systemwide cointegration exposure. Our results show that cryptocurrencies are indeed cointegrated with a cointegration rank of four. We also find that all currencies are affected by these long term equilibrium relations. A simple statistical arbitrage trading strategy is proposed showing a great in-sample performance. |
| Keywords: | Cointegration,VECM,Nonstationarity,Cryptocurrencies |
| JEL: | C00 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:irtgdp:2020012&r=all |