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)

scholarly journals Influence of Transaction Costs on Foreign Exchange Option Contracts: Intra-Daily Tests

2010 ◽  
Author(s):  
Ariful Hoque ◽  
Meher Manzur ◽  
Geoffrey Poitras
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Foreign Exchange ◽  
Lower Boundary ◽  
Profit Function ◽  
Transactions Costs ◽  
Distribution Free ◽  
Alternative Measures ◽  
Exchange Options ◽  
The Impact

This paper tests the impact of transaction cost specication on deviations from lower boundary and put-call parity properties. Using PHLX traded foreign exchange options, prices for puts and calls are matched to the nearest five minutes. The results indicate how boundaries on the arbitrage profit function determined by alternative measures of transactions costs can impact the interpretation of deviations from distribution free properties of options such as put-call parity.  

The Impact of Mobile Money Services on the Financial Transactions of Tertiary Students

2017 ◽  
Vol 6 (7) ◽  
Author(s):  
Francis Kwaku Kuma ◽  
Isaiah Miencha ◽  
Abena Yeboah Abrahams ◽  
Rev Nelson Boadi
Keyword(s):  
Mobile Money ◽  
Financial Transactions ◽  
The Impact

scholarly journals How Risky Is That Risk Sharing Agreement? Mean-Variance Tradeoffs and Unintended Consequences of Six Common Risk Sharing Agreements

2021 ◽  
Vol 6 (1) ◽  
pp. 238146832199040
Author(s):  
Gregory S. Zaric
Keyword(s):  
Risk Sharing ◽  
Financial Risk ◽  
Unintended Consequences ◽  
Drug Costs ◽  
New Drugs ◽  
Total Drug ◽  
Number Of Patients ◽  
Clinical Benefits ◽  
The Impact ◽  
Mean Variance

Background. Pharmaceutical risk sharing agreements (RSAs) are commonly used to manage uncertainties in costs and/or clinical benefits when new drugs are added to a formulary. However, existing mathematical models of RSAs ignore the impact of RSAs on clinical and financial risk. Methods. We develop a model in which the number of patients, total drug consumption per patient, and incremental health benefits per patient are uncertain at the time of the introduction of a new drug. We use the model to evaluate the impact of six common RSAs on total drug costs and total net monetary benefit (NMB). Results. We show that, relative to not having an RSA in place, each RSA reduces expected total drug costs and increases expected total NMB. Each RSA also improves two measures of risk by reducing the probability that total drug costs exceed any threshold and reducing the probability of obtaining negative NMB. However, the effects on variance in both NMB and total drug costs are mixed. In some cases, relative to not having an RSA in place, implementing an RSA can increase variability in total drug costs or total NMB. We also show that, for some RSAs, when their parameters are adjusted so that they have the same impact on expected total drug cost, they can be rank-ordered in terms of their impact on variance in drug costs. Conclusions. Although all RSAs reduce expected total drug costs and increase expected total NMB, some RSAs may actually have the undesirable effect of increasing risk. Payers and formulary managers should be aware of these mean-variance tradeoffs and the potentially unintended results of RSAs when designing and negotiating RSAs.

scholarly journals Mobile Money Use: The Impact of Macroeconomic Policy and Regulation

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 51
Author(s):  
Lorna Katusiime
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Financial Innovation ◽  
Macroeconomic Policy ◽  
Mobile Money ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Short Run ◽  
The Impact

This paper examines the effects of macroeconomic policy and regulatory environment on mobile money usage. Specifically, we develop an autoregressive distributed lag model to investigate the effect of key macroeconomic variables and mobile money tax on mobile money usage in Uganda. Using monthly data spanning the period March 2009 to September 2020, we find that in the short run, mobile money usage is positively affected by inflation while financial innovation, exchange rate, interest rates and mobile money tax negatively affect mobile money usage in Uganda. In the long run, mobile money usage is positively affected by economic activity, inflation and the COVID-19 pandemic crisis while mobile money customer balances, interest rate, exchange rate, financial innovation and mobile money tax negatively affect mobile money usage.

scholarly journals The Turkish wheat market: spatial price transmission and the impact of transaction costs

Agribusiness ◽  
2010 ◽  
Vol 27 (2) ◽  
pp. 147-161 ◽  
Author(s):  
Stephan Brosig ◽  
Thomas Glauben ◽  
Linde Götz ◽  
Enno-Burghard Weitzel ◽  
Ahmet Bayaner
Keyword(s):  
Transaction Costs ◽  
Price Transmission ◽  
Wheat Market ◽  
Spatial Price ◽  
The Impact

Analysis of Externalities of Economic Activity of the Enterprise

2021 ◽  
Vol 2021 (2) ◽  
pp. 86-94
Author(s):  
Dmytro V. Kozlov
Keyword(s):  
Transaction Costs ◽  
Economic Activity ◽  
Environmental Externalities ◽  
Negative Externalities ◽  
Time Duration ◽  
Marginal Costs ◽  
Positive Externalities ◽  
State And Market ◽  
The Impact

The problems of research of internalities and externalities with the further development of the general classification of externalities of economic activity of the enterprise are defined. The influence of negative and positive externalities on society and enterprise is considered. The concept of negative externalities differs from transaction costs. It is noted that transaction costs can be reflected in cash and can be offset by market inclusion in the price of the products, but this is not possible for externalities. It is emphasized that the purpose of economic activity of any enterprise is to exceed the positive externalities over the negative and achieve the maximum difference between them. The different time duration of the impact of the enterprise on third parties is given. The sign of externalities on the scale of action is emphasized. The externalities of the enterprise are considered in their essence according to the principles of sustainable development, highlighting economic, social and environmental externalities. It is emphasized that economic externalities can arise in the course of the whole business cycle of full-fledged work of all parts of the enterprise. In contrast to economic, social externalities affect people both within the enterprise, that is workers and citizens of the society in which the enterprise operates. And when it comes to environmental externalities, the mediator between the source and recipient of externalities is the environment. Externalities are distinguished according to the means of accounting and the degree of influence on the subject of perception. The necessity of regulation of externalities through internalization and actions of the enterprise with the help of state and market instruments is substantiated. It is emphasized that internalization is the transformation of negative externalities into positive ones in terms of convergence of marginal costs and benefits of the enterprise to marginal social costs and utility.

scholarly journals Experimental Markets and Environmental Policy

1993 ◽  
Vol 22 (2) ◽  
pp. 117-129 ◽  
Author(s):  
Jason F. Shogren
Keyword(s):  
Environmental Policy ◽  
Transaction Costs ◽  
Experimental Auction ◽  
Dynamic Choice ◽  
Auction Markets ◽  
Experimental Markets ◽  
Reduction Mechanisms ◽  
Sequential Reduction ◽  
The Impact ◽  
Coasian Bargaining

Experimental markets can be a useful tool to guide and evaluate environmental policy. This paper reviews four experiments to illustrate. Two institutional experiments are considered—Coasian bargaining with positive transaction costs, and a gaming experiment of dynamic choice in a conflict. Two valuation experiments are also discussed—the impact of sequential reduction mechanisms on the value of risk, and experimental auction markets to elicit the value of safer food.

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