dc.contributor.author |
Chiu, Jonathan |
|
dc.contributor.author |
Wong, Tsz-Nga |
|
dc.date.accessioned |
2016-08-02T20:48:31Z |
|
dc.date.accessioned |
2022-07-07T21:26:25Z |
|
dc.date.available |
2016-08-02T20:48:31Z |
|
dc.date.available |
2022-07-07T21:26:25Z |
|
dc.date.copyright |
2016 |
|
dc.date.issued |
2016 |
|
dc.identifier.uri |
https://ir.wgtn.ac.nz/handle/123456789/19474 |
|
dc.description.abstract |
Recent years have witnessed the advances of e-money systems such as Bitcoin, PayPal and various forms of stored-value cards. This paper adopts a mechanism design approach to identify some essential features of different payment systems that implement the optimal resource allocation. We find that, compared to cash, e-money technologies allowing limited participation, limited transferability and non-zero-sum transfers can help mitigate fundamental frictions and enhance social welfare, if they satisfy conditions in terms of parameters such as trade frequency and bargaining powers. An optimally designed e-money system exhibits realistic arrangements including non-linear pricing, cross-subsidization and positive interchange fees even when the technologies incur no costs. Regulations such as a cap on interchange fees (à la the Dodd-Frank Act) can distort the optimal mechanism and reduce welfare. |
en_NZ |
dc.format |
pdf |
en_NZ |
dc.language.iso |
en_NZ |
|
dc.publisher |
Te Herenga Waka—Victoria University of Wellington |
en_NZ |
dc.relation.ispartofseries |
SEF Working Paper ; 14/2016 |
en_NZ |
dc.subject |
Money |
en_NZ |
dc.subject |
Electronic money |
en_NZ |
dc.subject |
Mechanism design |
en_NZ |
dc.subject |
Search and matching |
en_NZ |
dc.subject |
Efficiency |
en_NZ |
dc.title |
On the essentiality of E-money |
en_NZ |
dc.type |
Text |
en_NZ |
vuwschema.contributor.unit |
School of Economics and Finance |
en_NZ |
vuwschema.subject.anzsrcfor |
140212 Macroeconomics (incl. Monetary and Fiscal Theory) |
en_NZ |
vuwschema.type.vuw |
Working or Occasional Paper |
en_NZ |
vuwschema.subject.anzsrcforV2 |
380112 Macroeconomics (incl. monetary and fiscal theory) |
en_NZ |
dc.rights.rightsholder |
http://www.victoria.ac.nz/sef/research/sef-working-papers |
en_NZ |