In this paper we study the effects on mobile market outcomes from three specific attributes linked to a flexible spectrum policy: the presence of a secondary market for spectrum trading, a technological neutrality approach, and the possibility of conducting sharing agreements among operators. In terms of market outcomes, we identify four possible variables: capital investment, network coverage, service pricing, and adoption. After designing a precise causal approach linking the above-mentioned variables, we were able to identify a significant impact on the four independent variables from the spectrum policies. When those three policies are jointly adopted, mobile capital investment is 35.9% larger than when that is not the case. In addition, promoting these policies can increase network coverage by 9.8% after two years, bring down mobile broadband prices by -5.8%, and increase mobile broadband unique subscribers’ penetration by 0.9%. When we consider a wider period of 5-years, dynamic effects take over, resulting in mobile broadband prices being reduced in -14.3% and mobile broadband unique subscribers’ penetration potentially increasing in 2.4%. These results were verified to be robust after the addition of control variables and when controlling for potential endogeneities associated to these causal frameworks. In sum, we believe, based on this evidence, that a flexible approach towards spectrum management that allows for secondary trading, technological neutrality and network sharing can contribute significantly to the development of the mobile sector, thereby maximizing socioeconomic welfare.
{"title":"Spectrum Flexibility and Mobile Development","authors":"Juan Jung, Raul L. Katz","doi":"10.2139/ssrn.3941383","DOIUrl":"https://doi.org/10.2139/ssrn.3941383","url":null,"abstract":"In this paper we study the effects on mobile market outcomes from three specific attributes linked to a flexible spectrum policy: the presence of a secondary market for spectrum trading, a technological neutrality approach, and the possibility of conducting sharing agreements among operators. In terms of market outcomes, we identify four possible variables: capital investment, network coverage, service pricing, and adoption. After designing a precise causal approach linking the above-mentioned variables, we were able to identify a significant impact on the four independent variables from the spectrum policies. When those three policies are jointly adopted, mobile capital investment is 35.9% larger than when that is not the case. In addition, promoting these policies can increase network coverage by 9.8% after two years, bring down mobile broadband prices by -5.8%, and increase mobile broadband unique subscribers’ penetration by 0.9%. When we consider a wider period of 5-years, dynamic effects take over, resulting in mobile broadband prices being reduced in -14.3% and mobile broadband unique subscribers’ penetration potentially increasing in 2.4%. These results were verified to be robust after the addition of control variables and when controlling for potential endogeneities associated to these causal frameworks. In sum, we believe, based on this evidence, that a flexible approach towards spectrum management that allows for secondary trading, technological neutrality and network sharing can contribute significantly to the development of the mobile sector, thereby maximizing socioeconomic welfare.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131950417","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Recent studies on public service motivation (PSM) have increasingly adopted experimental approaches. This article provides a systematic review of the existing experimental studies on PSM and suggests guidance for future research. We assess the existing literature based on two criteria that differentiate experimental methods from observational ones: whether PSM is measured through an experiment and whether the research design operates treatment intervention for PSM. After reviewing a sample of 26 published studies, we find that only one study met both criteria. Most studies measure PSM through a self-reported survey and lack treatment effects, making it difficult to differentiate them from observational studies. Furthermore, external validity remains a concern, as most studies use students as proxies for civil servants or focus only on Western states. We conclude that experimental studies on PSM remain at a nascent stage with much room for improvement, especially the experimental design.
{"title":"A Systematic Review of Experimental Approaches on Public Service Motivation","authors":"K. Chung, Inbok Rhee, Cheol Liu","doi":"10.2139/ssrn.3914603","DOIUrl":"https://doi.org/10.2139/ssrn.3914603","url":null,"abstract":"Recent studies on public service motivation (PSM) have increasingly adopted experimental approaches. This article provides a systematic review of the existing experimental studies on PSM and suggests guidance for future research. We assess the existing literature based on two criteria that differentiate experimental methods from observational ones: whether PSM is measured through an experiment and whether the research design operates treatment intervention for PSM. After reviewing a sample of 26 published studies, we find that only one study met both criteria. Most studies measure PSM through a self-reported survey and lack treatment effects, making it difficult to differentiate them from observational studies. Furthermore, external validity remains a concern, as most studies use students as proxies for civil servants or focus only on Western states. We conclude that experimental studies on PSM remain at a nascent stage with much room for improvement, especially the experimental design.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130189811","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The People's Bank of China (PBOC) has launched an ambitious project to develop a digital currency for use in domestic, retail transactions, and is, by far, the most advanced globally in this regard. In addition to involving a diverse set of stakeholders, the PBOC established a set of fundamental principles, including privacy, inclusiveness, and conservatism, and has articulated its progress in a public document translated into English. We maintain that although both its first principles and its conclusions drawn from the research conducted by the PBOC from 2014 to date are broadly reasonable and appropriate, the PBOC has also missed some important considerations and entertained some questionable assumptions, which many central banks around the world have also done. In this analysis, we consider the strengths and weaknesses of the digital currency proposition articulated by the PBOC as it exists today, and we propose one fundamental and specific change for the PBOC and other central banks around the world: The architecture must accommodate privacy-preserving, non-custodial wallets. With this change and a related set of minor adjustments, China has an opportunity to lead the world in the implementation of a central bank digital currency (CBDC) solution that protects the authority of the central bank to implement monetary policy, preserves the role of public-sector and private-sector banking institutions, promotes the efficiency of retail transactions and businesses, satisfies regulatory objectives, and safeguards the human rights of retail consumers, including their privacy and their right to participate in the economy. We hope that the PBOC, and other central banks around the world, will have the resolve and strength of purpose to implement our proposed change and carry on with implementing a CBDC architecture that serves the interests of its users.
{"title":"The Development of Central Bank Digital Currency in China: An Analysis","authors":"Geoffrey Goodell, H. D. Al-Nakib","doi":"10.2139/ssrn.3906358","DOIUrl":"https://doi.org/10.2139/ssrn.3906358","url":null,"abstract":"The People's Bank of China (PBOC) has launched an ambitious project to develop a digital currency for use in domestic, retail transactions, and is, by far, the most advanced globally in this regard. In addition to involving a diverse set of stakeholders, the PBOC established a set of fundamental principles, including privacy, inclusiveness, and conservatism, and has articulated its progress in a public document translated into English. We maintain that although both its first principles and its conclusions drawn from the research conducted by the PBOC from 2014 to date are broadly reasonable and appropriate, the PBOC has also missed some important considerations and entertained some questionable assumptions, which many central banks around the world have also done. In this analysis, we consider the strengths and weaknesses of the digital currency proposition articulated by the PBOC as it exists today, and we propose one fundamental and specific change for the PBOC and other central banks around the world: The architecture must accommodate privacy-preserving, non-custodial wallets. With this change and a related set of minor adjustments, China has an opportunity to lead the world in the implementation of a central bank digital currency (CBDC) solution that protects the authority of the central bank to implement monetary policy, preserves the role of public-sector and private-sector banking institutions, promotes the efficiency of retail transactions and businesses, satisfies regulatory objectives, and safeguards the human rights of retail consumers, including their privacy and their right to participate in the economy. We hope that the PBOC, and other central banks around the world, will have the resolve and strength of purpose to implement our proposed change and carry on with implementing a CBDC architecture that serves the interests of its users.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"59 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-08-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126645320","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Indiscriminate state repression leaves long-term negative consequences on interpersonal trust and trust in state institutions. In this paper, we investigate whether a variation in density of Soviet police forces, which governed the level of selectivity in repression execution, lead to heterogeneity in long-term trust response to repression. Similar to other studies, we find that both horizontal trust and vertical trust are negatively associated with indiscriminate repression exposure in the past. However, our results suggest that the magnitude of the negative effect diminishes with repression executed in a more selective fashion proxied by the intensity of the perpetrator’s deployment. Surprisingly, we find that trust response might even inverse to positive in localities where the state repression had been accompanied by a perpetrator’s presence at extremely high levels, i.e., when the state could ensure highly selective repression. Overall, our findings propose that the legacy of totalitarian regimes on horizontal and vertical trust might depend on the state’s capacity to execute repression with more or less precision against perceived enemies.
{"title":"The Legacy of State Repression on Contemporary Trust: Indiscriminate versus Targeted Repression in Soviet Russia","authors":"Nemanja Cocic, Chrysostomos Tabakis, Andrey Ten","doi":"10.2139/ssrn.3914609","DOIUrl":"https://doi.org/10.2139/ssrn.3914609","url":null,"abstract":"Indiscriminate state repression leaves long-term negative consequences on interpersonal trust and trust in state institutions. In this paper, we investigate whether a variation in density of Soviet police forces, which governed the level of selectivity in repression execution, lead to heterogeneity in long-term trust response to repression. Similar to other studies, we find that both horizontal trust and vertical trust are negatively associated with indiscriminate repression exposure in the past. However, our results suggest that the magnitude of the negative effect diminishes with repression executed in a more selective fashion proxied by the intensity of the perpetrator’s deployment. Surprisingly, we find that trust response might even inverse to positive in localities where the state repression had been accompanied by a perpetrator’s presence at extremely high levels, i.e., when the state could ensure highly selective repression. Overall, our findings propose that the legacy of totalitarian regimes on horizontal and vertical trust might depend on the state’s capacity to execute repression with more or less precision against perceived enemies.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117024974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article analyzes the risk perception of COVID-19 in Gabon, in general, and in the capital Libreville, in particular. Unlike work focused on the impact of COVID-19 on public finances, the education system, the digital system and the banking sector, etc., we are interested in its perception by the population. Thus, we were inspired by the work of Dryef et al. (2020) and we carried out a survey, via Google Forms, over a period from October 25, 2020 to December 26, 2020. A questionnaire was distributed via Whatsapp and was answered by one hundred and twelve (112) people. It appears that for the population of the Gabonese capital, the conversation of being infected with COVID-19 is weak and that of dying from it is even more so. In addition, residents find that the damage from contamination by COVID-19 is not serious, despite the non-compliance with barrier measures and the lack of special care in hospitals across the country. This perception of the risk by COVID-19 induces unwise behavior on the part of the Gabonese who do not find it useful to enforce the anti-COVID-19 measures imposed by the government on a young population, in a sunny country.
本文从总体上分析了加蓬，特别是首都利伯维尔对COVID-19的风险认知。与侧重于COVID-19对公共财政、教育系统、数字系统和银行业等的影响的工作不同，我们感兴趣的是民众对其的看法。因此，我们受到了dryyef et al.(2020)工作的启发，我们通过谷歌表格进行了一项调查，调查时间为2020年10月25日至2020年12月26日。通过Whatsapp分发了一份问卷，有112人回答了问卷。对于加蓬首都的人口来说，关于感染COVID-19的对话似乎很弱，而死于COVID-19的对话更是如此。此外，居民发现，尽管全国各地的医院不遵守隔离措施，缺乏特殊护理，但COVID-19污染造成的损害并不严重。这种对COVID-19风险的认知导致加蓬人做出不明智的行为，他们认为在一个阳光明媚的国家，政府对年轻人实施的抗COVID-19措施没有任何用处。
{"title":"Perception of the Risk of the COVID-19 Pandemic by Population : The Case of Gabon","authors":"Assoumou Ondo","doi":"10.2139/ssrn.3894658","DOIUrl":"https://doi.org/10.2139/ssrn.3894658","url":null,"abstract":"This article analyzes the risk perception of COVID-19 in Gabon, in general, and in the capital Libreville, in particular. Unlike work focused on the impact of COVID-19 on public finances, the education system, the digital system and the banking sector, etc., we are interested in its perception by the population. Thus, we were inspired by the work of Dryef et al. (2020) and we carried out a survey, via Google Forms, over a period from October 25, 2020 to December 26, 2020. A questionnaire was distributed via Whatsapp and was answered by one hundred and twelve (112) people. It appears that for the population of the Gabonese capital, the conversation of being infected with COVID-19 is weak and that of dying from it is even more so. In addition, residents find that the damage from contamination by COVID-19 is not serious, despite the non-compliance with barrier measures and the lack of special care in hospitals across the country. This perception of the risk by COVID-19 induces unwise behavior on the part of the Gabonese who do not find it useful to enforce the anti-COVID-19 measures imposed by the government on a young population, in a sunny country.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123877342","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The impact finance market has sought to 'internalise externalities and adjust risk perceptions' (G20 Green Finance Study Group, 2016), demonstrating the private sector's capability in resolving the climate free-rider problem through the 'greening' of economic activities, partially bypassing corrective government intervention. As the market continues to develop, however, the voluntary disclosure regime that the market operates under threatens to enforce an adverse selection problem and contribute to a fundamental erosion of confidence in the market segment, constraining the potential of impact finance instruments to affect positive social and environmental change. I relate the work of Crawford and Sobel (1982); Milgrom (1981); Verrecchia (1983); Jung and Kwon (1988); Myers and Majluf (1984); Frantz (1997); Frantz and Instefjord (2006) to the green bond market and draw inferences to inform recommendations for policy-led solutions.
{"title":"Voluntary Disclosure and Adverse Selection: Bayesian Game-Theoretical Inferences for Green Bond Labelling Regimes","authors":"Karim Henide","doi":"10.2139/ssrn.3889797","DOIUrl":"https://doi.org/10.2139/ssrn.3889797","url":null,"abstract":"The impact finance market has sought to 'internalise externalities and adjust risk perceptions' (G20 Green Finance Study Group, 2016), demonstrating the private sector's capability in resolving the climate free-rider problem through the 'greening' of economic activities, partially bypassing corrective government intervention. As the market continues to develop, however, the voluntary disclosure regime that the market operates under threatens to enforce an adverse selection problem and contribute to a fundamental erosion of confidence in the market segment, constraining the potential of impact finance instruments to affect positive social and environmental change. I relate the work of Crawford and Sobel (1982); Milgrom (1981); Verrecchia (1983); Jung and Kwon (1988); Myers and Majluf (1984); Frantz (1997); Frantz and Instefjord (2006) to the green bond market and draw inferences to inform recommendations for policy-led solutions.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126770090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
C. Bethencourt, G. A. Marrero, Charlie Yves Ngoudji
More than 90% of people suffering from Malaria live in Sub-Saharan Africa (SSA). We construct, for the first time, a Malaria Policy Index (MaPI) for 44 SSA countries to quantify and compare each country’s antimalarial policy actions between 1990 and 2017. The MaPI compiles information on intervention strategies such as prevention, diagnosis and treatment (Pillar 1) and the use of antimalarial therapies and tests (Pillar 2). We find that: antimalarial policy implementation is a widespread phenomenon in the region from the mid-2000s on; initial differences in per capita GDP, quality of institutions and malaria burden are not associated with the current levels of policy implementation and; there exists a first stage of policy divergence (before mid-2000s), followed by a strong convergence period. The convergence period is associated with an unprecedented increase in international malaria fight funding, which was unevenly distributed across countries according to their necessities to eradicate the disease. Using a difference-in-difference events study design and a distributed lag model approach, we estimate the effect of antimalarial policy implementation increases on subsequent changes in malaria mortality within SSA countries. We find that policies included in Pillar 1 are key to reduce within-country malaria mortality: an increase of 10 p.p. in policies implemented in this pillar generates a cumulative malaria mortality decrease of about 6 p.p. after five years.
{"title":"The Fight Against Malaria: A New Index for Quantifying and Assessing Policy Implementation Actions to Reduce Mortality in Sub-Saharan Africa","authors":"C. Bethencourt, G. A. Marrero, Charlie Yves Ngoudji","doi":"10.2139/ssrn.3878306","DOIUrl":"https://doi.org/10.2139/ssrn.3878306","url":null,"abstract":"More than 90% of people suffering from Malaria live in Sub-Saharan Africa (SSA). We construct, for the first time, a Malaria Policy Index (MaPI) for 44 SSA countries to quantify and compare each country’s antimalarial policy actions between 1990 and 2017. The MaPI compiles information on intervention strategies such as prevention, diagnosis and treatment (Pillar 1) and the use of antimalarial therapies and tests (Pillar 2). We find that: antimalarial policy implementation is a widespread phenomenon in the region from the mid-2000s on; initial differences in per capita GDP, quality of institutions and malaria burden are not associated with the current levels of policy implementation and; there exists a first stage of policy divergence (before mid-2000s), followed by a strong convergence period. The convergence period is associated with an unprecedented increase in international malaria fight funding, which was unevenly distributed across countries according to their necessities to eradicate the disease. Using a difference-in-difference events study design and a distributed lag model approach, we estimate the effect of antimalarial policy implementation increases on subsequent changes in malaria mortality within SSA countries. We find that policies included in Pillar 1 are key to reduce within-country malaria mortality: an increase of 10 p.p. in policies implemented in this pillar generates a cumulative malaria mortality decrease of about 6 p.p. after five years.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133275094","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper analyzes the challenges faced by competition authorities with respect to the digital sector. Borrowing insights from the business policy literature and from the economic literature, the paper first analyzes the specificities of digital firms (multi-sided platforms and ecosystems) with respect to their development and competitive strategies. Building on this foundation the paper explores some of the challenges of applying traditional competition analysis to competition in the business sector. We then discuss a number of issues relevant to competition law enforcement in the digital sector starting with the role of data, competition within ecosystems and between ecosystems, consumer biases, and the role of gatekeepers. We conclude with a research agenda for economists and competition authorities.
{"title":"Competition Law and Digital Ecosystems: Learning To Walk Before We Run","authors":"F. Jenny","doi":"10.2139/ssrn.3776274","DOIUrl":"https://doi.org/10.2139/ssrn.3776274","url":null,"abstract":"\u0000 The paper analyzes the challenges faced by competition authorities with respect to the digital sector. Borrowing insights from the business policy literature and from the economic literature, the paper first analyzes the specificities of digital firms (multi-sided platforms and ecosystems) with respect to their development and competitive strategies. Building on this foundation the paper explores some of the challenges of applying traditional competition analysis to competition in the business sector. We then discuss a number of issues relevant to competition law enforcement in the digital sector starting with the role of data, competition within ecosystems and between ecosystems, consumer biases, and the role of gatekeepers. We conclude with a research agenda for economists and competition authorities.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"143 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115998823","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In the land of ‘Jugaad’, where everyone is able to find a frugal fix to any problem, innovation is still dismal. Innovation in India is dismal not because of the lack of grey matter, but because India is systemically failing its inventors – firstly, through an education system that focuses on rote-learning rather than critical thinking, and secondly, through a broken system of filing patents. This article presents a deeper view of the latter and suggests tried-and-tested methods to improve upon it.
{"title":"The Fault in our Patents: How India can Innovate (and Grow) Better.","authors":"Akhil Bhardwaj","doi":"10.2139/ssrn.3884643","DOIUrl":"https://doi.org/10.2139/ssrn.3884643","url":null,"abstract":"In the land of ‘Jugaad’, where everyone is able to find a frugal fix to<br>any problem, innovation is still dismal. Innovation in India is dismal not because of the lack of grey matter, but because India is systemically failing its inventors – firstly, through an education system that focuses on rote-learning rather than critical thinking, and secondly, through a broken system of filing patents. This article presents a deeper view of the latter and suggests tried-and-tested methods to improve upon it.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"47 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130541925","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aims to document the inter-linkages between two on-going global trends through an empirical investigation – (1) the rapid advancement of the ICT-driven innovations in delivering various types of financial service, and (2) the growing legal and regulatory efforts to protect consumers in the financial markets, after the recent financial crisis in particular. To that end, we compile a set of macro-level indicators on the aggregate outcomes of the financial service sector in Korea during the last three decades, and conduct a regression analysis to gauge the effects of the digital transformation (DT) in the country on those indicators. Using an ARDL-ECM as our empirical model, our results show that: Over time, the unit cost for financial intermediation in the country tends to move in tandem with the growth of economic output, although the profit portion of the cost did not exhibit a long-term relationship with the GDP trend; The long-term effect of the DT trend is negative (i.e., costsaving) for labor input and capital expenditure, which are shown to be statistically significant, and, as a consequence, its impact on the total intermediation cost is also positive and statistically significant. Based on the above outcomes, we elaborate their implications in designing a set of policy instruments to protect financial consumers, and also discuss the Vietnamese case as an illustration to extend this type of macro-level analysis for the purpose of coming up with a policy regime for financial consumers in an emerging-market context.
{"title":"Did Financial Consumers Benefit from the Digital Transformation? An Empirical Investigation and a Case Study","authors":"S. Park, M. Cho","doi":"10.2139/ssrn.3914600","DOIUrl":"https://doi.org/10.2139/ssrn.3914600","url":null,"abstract":"This study aims to document the inter-linkages between two on-going global trends through an empirical investigation – (1) the rapid advancement of the ICT-driven innovations in delivering various types of financial service, and (2) the growing legal and regulatory efforts to protect consumers in the financial markets, after the recent financial crisis in particular. To that end, we compile a set of macro-level indicators on the aggregate outcomes of the financial service sector in Korea during the last three decades, and conduct a regression analysis to gauge the effects of the digital transformation (DT) in the country on those indicators. Using an ARDL-ECM as our empirical model, our results show that: Over time, the unit cost for financial intermediation in the country tends to move in tandem with the growth of economic output, although the profit portion of the cost did not exhibit a long-term relationship with the GDP trend; The long-term effect of the DT trend is negative (i.e., costsaving) for labor input and capital expenditure, which are shown to be statistically significant, and, as a consequence, its impact on the total intermediation cost is also positive and statistically significant. Based on the above outcomes, we elaborate their implications in designing a set of policy instruments to protect financial consumers, and also discuss the Vietnamese case as an illustration to extend this type of macro-level analysis for the purpose of coming up with a policy regime for financial consumers in an emerging-market context.","PeriodicalId":347047,"journal":{"name":"KDI School of Public Policy & Management Research Paper Series","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123186943","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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