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on Payment Systems and Financial Technology |
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Issue of 2024‒04‒29
nineteen papers chosen by |
| By: | Arina Wischnewsky |
| Abstract: | As economies transition towards digitalization, the shift from cash to noncash alternatives becomes increasingly relevant. While this trend is rapidly advancing in some countries, others continue to rely heavily on cash, underlining the need for central banks to measure and understand cash usage accurately. Numerous studies have attempted to explain the dynamics behind the declining—or, in some instances, paradoxically increasing—utilization of cash in conjunction with the rise of digital payment systems. Yet, the question of what fundamental factors influence cash use and how one might accurately formulate policies for a Central Bank Digital Currency (CBDC), particularly in a diverse European context, remains unanswered. This paper enriches the discourse on digital payment systems and cash usage by exploring the underlying influences on these phenomena. Notably, it provides new cross-country evidence on cultural and behavioral factors being pivotal in shaping these trends. This study is the first to reveal that (social) trust plays a crucial role in the global shift from cash reliance to digital economy integration, outlining a distinctive non-linear relationship between trust and cash usage. |
| Keywords: | cash use, digital transformation, culture, national mobile payment system, cashless societies, trust, monetary systems |
| JEL: | E41 O33 E42 C33 Z1 E7 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:trr:wpaper:202404&r=pay |
| By: | Zan Fairweather (Reserve Bank of Australia); Denzil Fiebig (University of New South Wales); Adam Gorajek (Reserve Bank of Australia); Rochelle Guttmann (Reserve Bank of Australia); June Ma (Harvard University); Jack Mulqueeney (Reserve Bank of Australia) |
| Abstract: | This paper explores the merits of introducing a retail central bank digital currency (CBDC) in Australia, focusing on the extent to which consumers would value having access to a digital form of money that is even safer and potentially more private than commercial bank deposits. To conduct our exploration we run a discrete choice experiment, which is a technique designed specifically for assessing public valuations of goods without markets. The results suggest that the average consumer attaches no value to the added safety of a CBDC. This is consistent with bank deposits in Australia already being perceived as a safe form of money, and physical cash issued by the Reserve Bank of Australia continuing to be available as an alternative option. Privacy settings of a CBDC, which can take various forms, look more consequential for the CBDC value proposition. We find no clear relationship between safety or privacy valuations and the degree of consumers' cash use. |
| Keywords: | central bank digital currency; data privacy; financial safety; willingness to pay |
| JEL: | C90 E42 E50 G21 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:rba:rbardp:rdp2024-02&r=pay |
| By: | Arindam Misra |
| Abstract: | The Financial system has witnessed rapid technological changes. The rise of Bitcoin and other crypto assets based on Distributed Ledger Technology mark a fundamental change in the way people transact and transmit value over a decentralized network, spread across geographies. This has created regulatory and tax policy blind spots, as governments and tax administrations take time to understand and provide policy responses to this innovative, revolutionary, and fast-paced technology. Due to the breakneck speed of innovation in blockchain technology and advent of Decentralized Finance, Decentralized Autonomous Organizations and the Metaverse, it is unlikely that the policy interventions and guidance by regulatory authorities or tax administrations would be ahead or in sync with the pace of innovation. This paper tries to explain the principles on which crypto assets function, their underlying technology and relates them to the tax issues and taxable events which arise within this ecosystem. It also provides instances of tax and regulatory policy responses already in effect in various jurisdictions, including the recent changes in reporting standards by the FATF and the OECD. This paper tries to explain the rationale behind existing laws and policies and the challenges in their implementation. It also attempts to present a ballpark estimate of tax potential of this asset class and suggests creation of global public digital infrastructure that can address issues related to pseudonymity and extra-territoriality. The paper analyses both direct and indirect taxation issues related to crypto assets and discusses more recent aspects like proof-of-stake and maximal extractable value in greater detail. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.15074&r=pay |
| By: | Borus, Dinah |
| Abstract: | Potato sector has a substantial role in Kenya's agriculture, contributing to food security, nutrition, and the national economy. While underscoring the sector's vast potential, this Technical Brief identifies the existing gap between current yields and achievable targets, highlighting the necessity for strategic improvements in farming practices. It accentuates the transformative impact of digital tools in the agricultural landscape, notably accelerated by the COVID-19 pandemic and facilitated by the widespread use of mobile technology and internet access in the country. In particular, this brief spotlights the Viazi Soko (VS) digital platform, an initiative specifically designed for the potato value chain, offering a range of services from e-advisory to market linkages. Despite the innovative features and strategic importance of digital platforms, the underlying research reveals a discrepancy in the adoption and utilization of digital tools among farmers, attributed to challenges such as limited awareness of these tools, low internet connectivity in rural areas, and the affordability of digital access. To bridge this digital divide, the report proposes targeted interventions to enhance the adoption of digital tools, focusing on increasing awareness, improving digital literacy, and establishing a potato-specific call center to provide real-time, tailored support to farmers. By advocating for a more integrated approach that combines digital innovation with farmer education and support, the report envisions a future where digital tools are leveraged to unlock the full potential of the potato sector in Kenya, leading to increased productivity, profitability, and a more robust contribution to the nation's food security and economic resilience. |
| Keywords: | potatoes; digital technology; agriculture; information systems; covid-19; food security; Kenya; Africa |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:cgiarp:138067&r=pay |
| By: | Pascal Paul; Mauricio Ulate; Jing Cynthia Wu |
| Abstract: | We develop a quantitative New Keynesian DSGE model to study the introduction of a central bank digital currency (CBDC): government-backed digital money available to retail consumers. At the heart of our model are monopolistic banks with market power in deposit and loan markets. When a CBDC is introduced, households benefit from an expansion of liquidity services and higher deposit rates as bank deposit market power is curtailed. However, deposits also flow out of the banking system and bank lending contracts. We assess this welfare trade-off for a wide range of economies that differ in their level of interest rates. We find substantial welfare gains from introducing a CBDC with an optimal interest rate that can be approximated by a simple rule of thumb: the maximum between 0% and the policy rate minus 1%. |
| Keywords: | central banks; digital currencies; banks; DSGE models; monetary policy; central bank |
| JEL: | E3 E4 E5 G21 G51 |
| Date: | 2024–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:98046&r=pay |
| By: | Shahin Heidari; Shannon Hashemi; Mohammad-Soroush Khorsand; Alireza Daneshfar; Seyedalireza Jazayerifar |
| Abstract: | The rise of digital currency and the public ledger Block Chain has led to the development of a new type of electronic contract known as "smart contracts." For these contracts to be considered valid, they must adhere to traditional contract rules and be concluded without any impediments. Once written, encrypted, and signed, smart contracts are recorded in the Block Chain Ledger, providing transparent and secure record-keeping. Smart contracts offer several benefits, including their ability to execute automatically without requiring human intervention, their provision of public visibility of contract provisions on the Block Chain, their avoidance of financial crimes like Money Laundering, and their prevention of contract abuses. However, disputes arising from smart contracts still require human intervention, presenting unique challenges in enforcing these contracts, such as evidentiary issues, enforceability of waivers of defenses, and jurisdictional and choice-of-law considerations. Due to the novel nature of smart contracts, there are currently no standardized regulations that apply to them. Countries that have approved them have turned to customary law to legitimize their use. The Delphi method was used to identify critical success factors for applying blockchain transactions in a manufacturing company. Stepwise Weight Assessment Ratio Analysis (SWARA) was then utilized to determine the most influential factors. The proposed methodology was implemented, and results show that the most influential factors for the successful application of blockchain transactions as smart contracts in a manufacturing company are: turnover, the counter argument, vision, components for building, and system outcome quality. Conversely, connections with government entities and subcontractors, and the guarantee of quality have the least influence on successful implementation. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.19051&r=pay |
| By: | Aggelos Kiayias; Philip Lazos; Paolo Penna |
| Abstract: | We consider long-term equilibria that arise in the tokenomics design of proof-of-stake (PoS) blockchain systems that comprise of users and validators, both striving to maximize their own utilities. Validators are system maintainers who get rewarded with tokens for performing the work necessary for the system to function properly, while users compete and pay with such tokens for getting a desired system service level. We study how the system service provision and suitable rewards schemes together can lead to equilibria with desirable characteristics (1) viability: the system keeps parties engaged, (2) decentralization: multiple validators are participating, (3) stability: the price path of the underlying token used to transact with the system does not change widely over time, and (4) feasibility: the mechanism is easy to implement as a smart contract, i.e., it does not require fiat reserves on-chain for buy back of tokens or to perform bookkeeping of exponentially growing token holdings. Furthermore, we consider both the common single-token PoS model and a less widely used two-token approach (that roughly, utilizes one token for the users to pay the transaction fees and a different token for the validators to participate in the PoS protocol and get rewarded). Our approach demonstrates, for the first time to our knowledge, concrete advantages of the two-token approach in terms of the ability of the mechanism to reach equilibrium. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.15429&r=pay |
| By: | Nwaobi, Godwin |
| Abstract: | Notably, Africa countries have enjoyed relatively strong economic growth for the past years (decade) mainly because of impressive global demand for primary commodities. Unfortunately, Africa’s economic growth had failed to generate many good jobs and thus postponing the benefits of the demographic divided of a large working-age population. Consequently, digital (online) gig work is rapidly increasing new form of work that poses tough challenges and tradeoffs for African governments. Essentially, these gig jobs could be a stepping stone to better-quality jobs for young or low-skilled workers by way of assisting them to learn critical digital skills that closes the digital divide. However, gig workers are not usually protected by labor regulations against unfair practices or abuse or injuries at work. Therefore, this paper argues that given the low levels of implementation of labor laws in African countries, future polices should consider various stakeholders in the gig ecosystem (from both supply and demand sides) as well as digital platforms operation. In other words, as several continents have made the transition to technology-enabled platforms for services; Africa should not be left out of the digital boom for the sake of prosperity and sustainable development |
| Keywords: | Gig Work, Digital Work, Africa, Digital Platforms, Microtask, Labour Policies, Regulations, African Governments, Labour Market, Digital Currency, Gig Supply, Gig Demand Gig Services, Policy Makers, Labour Laws Development, Economic Growth, Online Work |
| JEL: | E20 E24 E26 E61 E62 G23 H24 H55 I30 I31 J45 J65 J80 K31 M13 O15 O30 O38 |
| Date: | 2024–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120532&r=pay |
| By: | Ilyas Ahnach (Faculté des Sciences Juridiques, Economiques et Sociales - UM5 - Université Mohammed V de Rabat [Agdal]); Said Tounsi (Faculté des Sciences Juridiques, Economiques et Sociales - UM5 - Université Mohammed V de Rabat [Agdal]) |
| Abstract: | Blockchain technology promises real development for the financial market and bringing new contribution to the market. It has been addressed in several industries and mainly financial services. It can create decentralized and distributed registers specially dedicated to financial services and can improve financial intermediation by ensuring rapid settlement, lower transaction costs and continuous operation of the market. The main objective of this paper is then to analyze whether there exists empirically a long-term relationship and a positive impact between the integration of blockchain on the performance of the stock market, taking the case of BVMC. The method used is a cointegration analysis via modeling the degree of blockchain integration in Morocco and the performance of the stock market, represented by the evolution of the MASI index, while integrating other variables to further support the model. The BVMC is in the midst of a transformation and the new development model (2021) gives it an important role in financing the economy. One of the most important acceleration levers for achieving its objectives remains digitalization. And blockchain offers plenty of advantages in terms of digital transformation for the Moroccan stock market. Several projects to create financial markets operating on a blockchain are underway in developed countries, and several theoretical studies demonstrate the advantages of blockchain integration in the financial market. The BVMC will be tempted to follow international trends and the search for performance will lead the BVMC to integrate blockchain technology. The results of the study clearly demonstrate that blockchain technology will bring new rules to the way transactions operate and are organized, and that it will have a positive impact on the performance of the Moroccan stock market. |
| Abstract: | La technologie blockchain promet un véritable développement pour le marché financier et en apportant de nouveaux apports sur le marché. Elle a été adoptée dans plusieurs industries et principalement les services financiers. Elle peut créer des registres décentralisés et distribués spécialement dédiés aux services financiers et peut améliorer l'intermédiation financière en procédant à une rapidité de règlement, une baisse des coûts de transactions ainsi qu'un fonctionnement au continu du marché. L'objectif principal de ce papier est alors d'analyser s'il existe empiriquement une relation de long terme et un impact positif entre l'intégration de la blockchain sur la performance du marché boursier, en prenant le cas de la BVMC. La méthode utilisée est une analyse de cointégration via une modélisation du degré d'intégration de la blockchain au Maroc et la performance du marché boursier, représentée par l'évolution de l'indice MASI, tout en intégrant d'autres variables pour étayer davantage le modèle. La BVMC est en pleine transformation et le nouveau modèle de développement de 2021 lui place un rôle important dans le financement de l'économie. Un des leviers d'accélération le plus importants pour la réalisation de ses objectifs reste la digitalisation. Et la blockchain offre plein d'avantages en termes de transformation digitale pour le marché boursier marocain. Plusieurs projets de création de marché financier opérant sur une blockchain sont en cours dans les pays développés, et plusieurs études théoriques démontrent les avantages de l'intégration de la blockchain sur le marché financier. La BVMC sera tentée de suivre les tendances internationales et la recherche de performance conduira la BVMC à intégrer la technologie blockchain. Les résultats de l'étude démontrent alors clairement que la technologie blockchain va apporter de nouvelles règles au mode de fonctionnement et d'organisation des transactions, et qu'elle aura un impact positif sur la performance du marché boursier marocain. |
| Keywords: | Blockchain, Decentralized ledger, Performance, Transaction cost |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04501159&r=pay |
| By: | Zixuan Huang; Ms. Amina Lahreche; Mika Saito; Ursula Wiriadinata |
| Abstract: | E-money development has important yet theoretically ambiguous consequences for monetary policy transmission, because nonbank deposit-taking e-money issuers (EMIs) (e.g., mobile network operators) can either complement or substitute banks. Case studies of e-money regulations point to complementarity of EMIs with banks, implying that the development of e-money could deepen financial intermediation and strengthen monetary policy transmission. The issue is further explored with panel data, on both monthly (covering 21 countries) and annual (covering 47 countries) frequencies, over 2001 to 2019. We use a two-way fixed effect estimator to estimate the causal effects of e-money development on monetary policy transmission. We find that e-money development has accompanied stronger monetary policy transmission (measured by the responsiveness of interest rates to the policy rate), growth in bank deposits and credit, and efficiency gains in financial intermediation (measured by the lending-to-deposit rate spread). Evidence is more pronounced in countries where e-money development takes off in a context of limited financial inclusion. This paper highlights the potential benefits of e-money development in strengthening monetary policy transmission, especially in countries with limited financial inclusion. |
| Keywords: | Monetary policy transmission; banks; nonbank financial institutions; e-money; panel data |
| Date: | 2024–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/069&r=pay |
| By: | Kaddachi, Hayet; kroumi, Yassine; Ben Zina, Naceur |
| Abstract: | This study is based on a sample of 100 customers of the Tunisian Post, the objective is to know the impact of digital transformation on the Tunisian Post through the D17 application. Based on our analysis; the results show that mobile payments constitute an attractive solution for individuals because they are practical and easy to use tools. For the Post, the D17 application can be considered a powerful instrument not only for the development of digital strategies, but also for the country's financial sector and the economy in general. |
| Keywords: | Digital transformation; Post-customer relationship |
| JEL: | A3 Y10 |
| Date: | 2024–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120564&r=pay |
| By: | Aman Saggu; Lennart Ante; Ender Demir |
| Abstract: | National football teams increasingly issue tradeable blockchain-based fan tokens to strategically enhance fan engagement. This study investigates the impact of 2022 World Cup matches on the dynamic performance of each team's fan token. The event study uncovers fan token returns surged six months before the World Cup, driven by positive anticipation effects. However, intraday analysis reveals a reversal of fan token returns consistently declining and trading volumes rising as matches unfold. To explain findings, we uncover asymmetries whereby defeats in high-stake matches caused a plunge in fan token returns, compared to low-stake matches, intensifying in magnitude for knockout matches. Contrarily, victories enhance trading volumes, reflecting increased market activity without a corresponding positive effect on returns. We align findings with the classic market adage "buy the rumor, sell the news, " unveiling cognitive biases and nuances in investor sentiment, cautioning the dichotomy of pre-event optimism and subsequent performance declines. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.15810&r=pay |
| By: | Angelo D’Andrea; Patrick Hitayezu; Mr. Kangni R Kpodar; Nicola Limodio; Mr. Andrea F Presbitero |
| Abstract: | Combining administrative data on credit, internet penetration and a land reform in Rwanda, this paper shows that the complementarity between technology and law can overcome financial frictions. Leveraging quasi-experimental variation in 3G availability from lightning strikes and incidental coverage, we show that mobile connectivity steers borrowers from microfinance to commercial banks and improves loan terms. These effects are partly due to the role of 3G internet in facilitating the acquisition of land titles from the reform, used as a collateral for bank loans and mortgages. We quantify that the collateral's availability mediates 35% of the overall effect of mobile internet on credit and 80% for collateralized loans. |
| Keywords: | Banks; Credit; High-speed Internet; Mobile; Technological Change |
| Date: | 2024–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/070&r=pay |
| By: | Anusorn Minphimai |
| Abstract: | This study examines the impact of innovations in the payment system on household finance, focusing on consumption behaviors and financial literacy among low-income households. The investigation utilizes Thailand’s introduction of the cashless State Welfare Card to low-income households in 2017 as a quasi-experiment setting. The primary data sources for this study include the large-scale countrywide household socioeconomic survey (SES) conducted by Thailand’s National Statistical Office (NSO) and survey data from individuals in four provinces of Thailand. The empirical strategy in this study is primarily fuzzy regression discontinuity design. The results of the study reveal that individuals who receive the cashless State Welfare Card experience effective increases in consumption of the food and beverage items that are the target of the policy. Contrary to concerns about adverse impacts, such as overconsumption or using the card for unintended items like cigarettes, there is no evidence supporting these claims. Instead, people using the state welfare card exhibit better financial literacy and reduced risk-taking consumption behavior. The result underscores the importance of financial literacy training provided alongside the card. However, the study does not find sufficient evidence to suggest a significant impact on trust in the financial system. |
| Keywords: | Household Finance; Financial Technology; State Welfare Card; Fuzzy Regression Discontinuity Design |
| JEL: | E12 D12 D14 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:pui:dpaper:219&r=pay |
| By: | Boyi Li; Weixuan Xia |
| Abstract: | Recent empirical evidence has highlighted the crucial role of jumps in both price and volatility within the cryptocurrency market. In this paper, we introduce an analytical model framework featuring fractional stochastic volatility, accommodating price--volatility co-jumps and volatility short-term dependency concurrently. We particularly focus on inverse options, including the emerging Quanto inverse options and their power-type generalizations, aimed at mitigating cryptocurrency exchange rate risk and adjusting inherent risk exposure. Characteristic function-based pricing--hedging formulas are derived for these inverse options. The general model framework is then applied to asymmetric Laplace jump-diffusions and Gaussian-mixed tempered stable-type processes, employing three types of fractional kernels, for an extensive empirical analysis involving model calibration on two independent Bitcoin options data sets, during and after the COVID-19 pandemic. Key insights from our theoretical analysis and empirical findings include: (1) the superior performance of fractional stochastic-volatility models compared to various benchmark models, including those incorporating jumps and stochastic volatility, (2) the practical necessity of jumps in both price and volatility, along with their co-jumps and rough volatility, in the cryptocurrency market, (3) stability of calibrated parameter values in line with stylized facts, and (4) the suggestion that a piecewise kernel offers much higher computational efficiency relative to the commonly used Riemann--Liouville kernel in constructing fractional models, yet maintaining the same accuracy level, thanks to its potential for obtaining explicit model characteristic functions. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.16006&r=pay |
| By: | Medel-Ramírez, Carlos; Medel-López, Hilario; Lara-Mérida, Jennifer |
| Abstract: | In today's fast-paced digital landscape, the spotlight is on the pursuit of transparent governance as a critical facet of global public administration. As we immerse ourselves in the digital era, brimming with endless opportunities, it becomes essential to reflect on the convergence of governance, clarity, and technological innovation. By exploring the journeys of Mexico and Vietnam, nations with diverse backgrounds and administrative paradigms, we present the LiTCoDE Framework. This model offers a fresh perspective on addressing transparency challenges of the modern age. The LiTCoDE Framework, symbolizing Leadership, Transformative Public Management, Collaboration, and Digital Evolution, stands out as a guidepost for nations aiming to amalgamate technology with their governance strategies, ultimately nurturing a transparent ethos. This approach posits that while digital tools play a pivotal role, genuine transparent governance stems from a leadership dedicated to openness, an ethos of teamwork, and a relentless drive for public management renewal. Although Mexico and Vietnam differ in terms of geography and cultural backdrop, they converge in their goals: to bolster their administrative frameworks amidst digital metamorphosis and champion transparency as a core value. Their tales, marked by both hurdles and achievements, offer an insightful comparative analysis. This exploration dives deep into the intricacies of policy execution, leadership dynamics, and the catalytic impact of united endeavors in both countries. Yet, every path of transformation is dotted with challenges. The digital revolution, despite its promise of vast knowledge accessibility, brings with it substantial barriers. From the looming shadows of fake news and security breaches to the task of guaranteeing universal tech access, the journey towards transparency remains intricate. Herein lies the essence of our discourse: to unearth the challenges, unravel the strategies adopted by Mexico and Vietnam, and thereby forge a roadmap that other nations might emulate. In dissecting the experiences of these two nations, we don't merely present a comparative study but a tapestry woven from threads of trials, tribulations, and triumphs. Through the lens of the LiTCoDE Framework, we aim to glean actionable insights that transcend borders, offering a blueprint for nations worldwide. The objective isn't just academic elucidation but the fostering of an international collaborative spirit, an ethos of shared learning, and mutual growth. The narrative of transparency in the digital age is a tale of endless possibilities, punctuated by challenges but illuminated by the beacon of hope that frameworks like LiTCoDE represent. Through a meticulous exploration of Mexico and Vietnam's experiences, this presentation aspires to light the path for nations and leaders, reaffirming the belief that in the confluence of leadership, technology, and collaboration, lies the promise of a transparent and accountable future. |
| Keywords: | Transparent Governance Digital Era LiTCoDE Framework Leadership Dynamics Comparative Analysis |
| JEL: | C00 H00 O33 O35 |
| Date: | 2023–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118706&r=pay |
| By: | Haihao Lu; Luyang Zhang |
| Abstract: | Sponsored listing is one of the major revenue sources for many prominent online marketplaces, such as Amazon, Walmart, and Alibaba. When consumers visit a marketplace's webpage for a specific item, in addition to that item, the marketplace might also display a ranked listing of sponsored items from various third-party sellers. These sellers are charged an advertisement fee if a user purchases any of the sponsored items from this listing. Determining how to rank these sponsored items for each incoming visit is a crucial challenge for online marketplaces, a problem known as sponsored listings ranking (SLR). The major difficulty of SLR lies in balancing the trade-off between maximizing the overall revenue and recommending high-quality and relevant ranked listings. While a more relevant ranking may result in more purchases and consumer engagement, the marketplace also needs to take account of the potential revenue when making ranking decisions. Due to the latency requirement and historical reasons, many online marketplaces use score-based ranking algorithms for SLR optimization. Alternatively, recent research also discusses obtaining the ranking by solving linear programming (LP). In this paper, we collaborate with a leading online global marketplace and conduct a series of field experiments to compare the performance of the score-based ranking algorithms and the LP-based algorithms. The field experiment lasted for $19$ days, which included $329.3$ million visits in total. We observed that the LP-based approach improved all major metrics by $1.80\%$ of revenue, $1.55\%$ of purchase, and $1.39\%$ of the gross merchandise value (GMV), compared to an extremely-tuned score-based algorithm that was previously used in production by the marketplace. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.14862&r=pay |
| By: | Adam Brzezinski; Nuno Palma; François R. Velde |
| Abstract: | Debates about the nature and economic role of money are mostly informed by evidence from the 20th century, but money has existed for millennia. We argue that there are many lessons to be learned from monetary history that are relevant for current topics of policy relevance. The past acts as a source of evidence on how money works across different situations, helping to tease out features of money that do not depend on one time and place. A close reading of history also offers testing grounds for models of economic behavior and can thereby guide theories on how money is transmitted to the real economy. |
| Keywords: | monetary policy, monetary history, natural experiments, policy experiments, identification in macroeconomics |
| JEL: | E40 E50 N10 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:man:allwps:0004&r=pay |
| By: | Simplice A. Asongu (Oxford, UK); Sara le Roux (Oxford, UK) |
| Abstract: | The study investigates the role of governance (i.e., ‘voice & accountability’, political stability/no violence, regulatory quality, government effectiveness, corruption-control and the rule of law) in the incidence of short-term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002-2021. The generalized method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption-control for access to electricity and from government effectiveness, regulatory quality, corruption-control and rule of law, for telecommunication infrastructure. Policy implications are discussed. |
| Keywords: | Debt service, governance; information technology; access to electricity; Africa |
| JEL: | F34 H63 O10 O40 O55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:24/003&r=pay |