Mobile money, risk sharing, and transaction costs: a replication study of evidence from Kenya’s mobile money revolution

2019 ◽  
Vol 11 (4) ◽  
pp. 342-359
Author(s):  
Nazila Alinaghi
Keyword(s):  
Transaction Costs ◽  
Risk Sharing ◽  
Replication Study ◽  
Mobile Money

scholarly journals Risk Sharing and Transactions Costs: Evidence from Kenya's Mobile Money Revolution

2014 ◽  
Vol 104 (1) ◽  
pp. 183-223 ◽  
Author(s):  
William Jack ◽  
Tavneet Suri
Keyword(s):  
Transaction Costs ◽  
Risk Sharing ◽  
Transactions Costs ◽  
Mobile Money ◽  
The Impact

We explore the impact of reduced transaction costs on risk sharing by estimating the effects of a mobile money innovation on consumption. In our panel sample, adoption of the innovation increased from 43 to 70 percent. We find that, while shocks reduce consumption by 7 percent for nonusers, the consumption of user households is unaffected. The mechanisms underlying these consumption effects are increases in remittances received and the diversity of senders. We report robustness checks supporting these results and use the four-fold expansion of the mobile money agent network as a source of exogenous variation in access to the innovation. (JEL E42, G22, O16, O17, Z13)

International pension swaps

2002 ◽  
Vol 1 (1) ◽  
pp. 77-83 ◽  
Author(s):  
ZVI BODIE ◽  
ROBERT C. MERTON
Keyword(s):  
Transaction Costs ◽  
Risk Sharing ◽  
Pension Funds ◽  
Equity Market ◽  
Financial Systems ◽  
The Past ◽  
Market Risks ◽  
Investment Companies ◽  
Domestic Capital ◽  
Swap Contracts

During the past twenty years, swap contracts have become key financial ‘adapters’ linking diverse national financial systems to the global financial network. Today banks and investment companies around the world use swaps extensively to manage their currency, interest-rate, and equity-market risks and to lower their transaction costs. Yet pension funds, which have grown rapidly over that same 20-year period, hardly use swaps at all. This paper suggests how pension funds could use swaps to achieve the risk-sharing benefits of broad international diversification and hedging while avoiding the ‘flight’ of scarce domestic capital to other countries. The paper also shows how swaps can be used to lower the risks of expropriation and to lower the other transaction costs of investing in other countries.

scholarly journals Innovations in emerging markets: the case of mobile money

2019 ◽  
Author(s):  
Adeline Pelletier ◽  
Susanna Khavul ◽  
Saul Estrin
Keyword(s):  
Developing Countries ◽  
Emerging Markets ◽  
Transaction Costs ◽  
Emerging Economies ◽  
Financial Services ◽  
Spillover Effects ◽  
Financial Inclusion ◽  
Legal Rights ◽  
Mobile Money ◽  
Policy And Strategy

Abstract Mobile money is a financial innovation that provides transfers, payments, and other financial services at a low or zero cost to individuals in developing countries where banking and capital markets are deficient and financial inclusion is low. We use transaction costs and institutional theories to explain the growth and impact of mobile money. Having developed a new archival dataset that tracks mobile money deployment across 90 emerging economies during 16 years between 2000 and 2015, we address the question of relative economic impact of the banking and telecoms sectors in the provision of mobile money. We show that telecom groups and not banks are more likely to launch mobile money in countries where legal rights are weaker and credit information less prevalent. However, it is when mobile money is offered via a banking channel that the spillover effects on the economy are greater. Findings have significant implications for policy and strategy.

scholarly journals Panel evidence from rural Uganda on mobile money, risk sharing, and educational investment

2022 ◽  
Vol 10 (4) ◽  
Author(s):  
Daniel Alves Abba
Keyword(s):  
Risk Sharing ◽  
School Age ◽  
Educational Investment ◽  
Mobile Banking ◽  
Mobile Money ◽  
Banking Service ◽  
Educational Spending ◽  
Percentage Points ◽  
Alternative Processes ◽  
Negative Shock

We investigate the influence of the rapidly developing mobile banking service "mobile money" on rural households' capacity to smooth their investment in education following a negative shock. We find that a negative shock reduces per school-age kid educational spending by 9.3 percentage points in families that do not utilize mobile money but by 8.3 percentage points in homes that have used mobile money. The underlying process is a rise in remittance receipts and sender variety as a result of the lower transaction costs afforded by mobile money. We demonstrate that our findings are resistant to alternative processes. We utilize the extension of the mobile money agent network as an exogenous variable in mobile money access.

Mobile money and its impact on improving living conditions in Niger: a replication study

2018 ◽  
Author(s):  
Jean Pierre Meneses ◽  
◽  
Edgar Ventura ◽  
Oliver Elorreaga ◽  
César Huaroto ◽  
...  
Keyword(s):  
Living Conditions ◽  
Replication Study ◽  
Mobile Money

Improving well-being through mobile money: a replication study in Niger

2019 ◽  
Vol 11 (4) ◽  
pp. 327-341
Author(s):  
JP Meneses ◽  
ET Ventura ◽  
OA Elorreaga ◽  
C Huaroto ◽  
GG Aguilar ◽  
...  
Keyword(s):  
Well Being ◽  
Replication Study ◽  
Mobile Money

PPPs as strategic alliances: from technocratic to multidimensional risk governance

2014 ◽  
Vol 40 (11) ◽  
pp. 1095-1111 ◽  
Author(s):  
Laura d'Alessandro ◽  
Stephen J. Bailey ◽  
Marco Giorgino
Keyword(s):  
Transaction Costs ◽  
Strategic Alliances ◽  
Risk Sharing ◽  
Strategic Alliance ◽  
Incomplete Contracts ◽  
Strategic Partnership ◽  
Risk Governance ◽  
Public And Private ◽  
Content Type ◽  
Definition Of

Purpose – Public-private partnerships (PPPs) are characterised by contracts which are necessarily incomplete due to the complexity of their contractual specifications for the contracted services combined with the long-term legal obligations they create. This creates high transaction costs including sharing (and so bearing) risks. The purpose of this paper is to investigate the link between risk sharing and governance, providing a new perspective for analysis with less emphasis on transaction costs and more on PPPs as strategic alliances. Design/methodology/approach – Three main issues are analysed. First, the definition of PPP in terms of both the type of arrangements and the actors involved, structures varying from one country to another and between contracts. Second, the definition of strategic alliance, identifying which form(s) of PPP is a strategic partnership. Third, reconsideration of incomplete contract theory to identify the circumstances where a strategic alliance can accommodate high transaction costs. Findings – The paper concludes that establishing PPPs as strategic alliances could rectify problems of incomplete contracts by implementing a multidimensional (rather than technocratic) approach to risk governance. Originality/value – The contribution to knowledge provided by this study is rooted in the conceptualization of PPPs as strategic alliances by distinguishing the tangible characteristics of strategic alliance related to the letter of the contract from the intangible characteristics related to the spirit of the contract with the main purpose being to create both public and private value.

scholarly journals Can Mobile-Linked Bank Accounts Bolster Savings? Evidence from a Randomized Controlled Trial in Sri Lanka

2020 ◽  
pp. 1-45
Author(s):  
Suresh de Mel ◽  
Craig McIntosh ◽  
Ketki Sheth ◽  
Christopher Woodruff
Keyword(s):  
Randomized Controlled Trial ◽  
Sri Lanka ◽  
Transaction Costs ◽  
Controlled Trial ◽  
Financial Inclusion ◽  
Bank Account ◽  
Mobile Money ◽  
Randomized Controlled ◽  
Partner Institution ◽  
Significant Barrier

We introduce a new mobile money interface that permits Sri Lankans to deposit mobile airtime balances directly into a formal bank account. Randomizing access and prices, we find a small increase in savings deposits with the partner institution and formal banks more generally, but no change in overall savings. When the deposit transaction costs are completely removed, only 26 percent use the mobile deposit service, and only 7 percent use it frequently. Our results imply that deposit transaction costs are not a significant barrier to increasing savings, limiting the potential gains of mobile-linked savings products for financial inclusion.

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