The Liquidity Premium of Digital Payment Vehicle

Published Online:https://doi.org/10.1287/mnsc.2023.01309

References

  • Acharya V, Qian J, Su Y, Yang Z (2020) In the shadow of banks: Wealth management products and issuing banks’ risks in China. CEPR Discussion Papers 14957, New York University (NYU) - Leonard N. Stern School of Business, New York.Google Scholar
  • Agarwal S, Zhang J (2020) FinTech, lending and payment innovation: A review. Asia-Pac. J. Financial Stud. 49(3):353–367.CrossrefGoogle Scholar
  • Ahnert T, Assenmacher K, Hoffmann P, Leonello A, Monnet C, Porcellacchia D (2022) The economics of central bank digital currency. ECB Working Paper No. 2022/2713. Preprint, submitted August 17, http://dx.doi.org/10.2139/ssrn.4192178.Google Scholar
  • Amstad M, He Z (2019) Handbook on China’s financial system: Chinese bond market and interbank market. NBER Working Paper 25549, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Andolfatto D (2021) Assessing the impact of central bank digital currency on private banks. Econom. J. (Lond.) 131(634):525–540.Google Scholar
  • Berry ST (1994) Estimating discrete-choice models of product differentiation. RAND J. Econom. 25(2):242–262.CrossrefGoogle Scholar
  • Berry S, Levinsohn J, Pakes A (1995) Automobile prices in market equilibrium. Econometrica 63(4):841–890.CrossrefGoogle Scholar
  • Bian W, Cong LW, Ji Y (2023) The rise of e-wallets and buy-now-pay-later: Payment competition, credit expansion, and consumer behavior. NBER Working Paper 31202, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Buchak G, Hu J, Wei S-J (2021) FinTech as a financial liberator. NBER Working Paper No. 29448, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Carapella F, Flemming J (2020) Central bank digital currency: A literature review. FEDS Notes. Board of Governors of the Federal Reserve System, Washington, DC.Google Scholar
  • Chapman J, Chiu J, Davoodalhosseini M, Jiang JH, Rivadeneyra F, Zhu Y (2023) Central bank digital currencies and banking: Literature review and new questions. Discussion Papers 2023-4, Bank of Canada, Ottawa.Google Scholar
  • Chen L, Huang Y, Ouyang S, Xiong W (2021) The data privacy paradox and digital demand. NBER Working Paper No. 28854, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Chernenko S, Sunderam A (2020) Liquidity transformation in asset management: Evidence from the cash holdings of mutual funds. Preprint, submitted November 5, http://dx.doi.org/10.2139/ssrn.3723369.Google Scholar
  • Cipriani M, La Spada G (2018) Investors’ appetite for money-like assets: The MMF industry after the 2014 regulatory reform. J. Financial Econom. 140(1):250–269.CrossrefGoogle Scholar
  • Cong L, Mayer S (2021) The coming battle of digital currencies. Preprint, submitted December 27, http://dx.doi.org/10.2139/ssrn.4068564.Google Scholar
  • Cong L, Li Y, Wang N (2021) Tokenomics: Dynamic adoption and valuation. Rev. Financial Stud. 34(3):1105–1155.CrossrefGoogle Scholar
  • Coval J, Stafford E (2007) Asset fire sales (and purchases) in equity markets. J. Financial Econom. 86(2):479–512.CrossrefGoogle Scholar
  • Crouzet N, Gupta A, Mezzanotti F (2023) Shocks and technology adoption: Evidence from electronic payment systems. J. Political Econom. 131(11):3003–3065.CrossrefGoogle Scholar
  • d’Avernas A, Vandeweyer Q (2024) Treasury bill shortages and the pricing of short-term assets. J. Finance, ePub ahead of print August 26, https://doi.org/10.1111/jofi.13376.Google Scholar
  • Diamond DW, Dybvig PH (1983) Bank runs, deposit insurance, and liquidity. J. Political Econom. 91(3):401–419.CrossrefGoogle Scholar
  • Diamond W, Jiang Z, Ma Y (2024) The reserve supply channel of unconventional monetary policy. J. Financial Econom. 159:103887.Google Scholar
  • Duffie D, Foucault T, Veldkamp L, Vives X (2022) Technology and Finance, The Future of Banking Report (CEPR Press, London).Google Scholar
  • Egan M, Hortaçsu A, Matvos G (2017) Deposit competition and financial fragility: Evidence from the US banking sector. Amer. Econom. Rev. 107(1):169–216.CrossrefGoogle Scholar
  • Fang X, Hardy B, Lewis KK (2022) Who holds sovereign debt and why it matters. Preprint, submitted June 1, http://dx.doi.org/10.2139/ssrn.4114081.Google Scholar
  • Frazzini A, Lamont OA (2008) Dumb money: Mutual fund flows and the cross-section of stock returns. J. Financial Econom. 88(2):299–322.CrossrefGoogle Scholar
  • Garratt R, Yu J, Zhu H (2021) Central bank digital currency design: Implications for market composition and monetary policy. Working paper, Massachusetts Institute of Technology, Cambridge, MA and University of California, Santa Barbara.Google Scholar
  • Greenwood R, Hanson SG, Stein JC (2015) A comparative-advantage approach to government debt maturity. J. Finance 70(4):1683–1722.CrossrefGoogle Scholar
  • He Z, Song Z (2022) Agency MBS as safe assets. NBER Working Paper No. 29899, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Higgins S (2024) Financial technology adoption. Amer. Econom. Rev. Forthcoming.CrossrefGoogle Scholar
  • Hong CY, Lu X, Pan J (2020) FinTech adoption and household risk-taking: From digital payments to platform investments. Preprint, submitted October 30, http://dx.doi.org/10.2139/ssrn.3706709.Google Scholar
  • Hong CY, Lu X, Pan J (2024) FinTech platforms and mutual fund distribution. Management Sci., ePub ahead of print April 8, https://doi.org/10.1287/mnsc.2022.01966.Google Scholar
  • Jack W, Suri T (2014) Risk sharing and transactions costs: Evidence from Kenya’s mobile money revolution. Amer. Econom. Rev. 104(1):183–223.CrossrefGoogle Scholar
  • Jiang Z, Krishnamurthy A, Lustig H (2021) Foreign safe asset demand and the dollar exchange rate. J. Finance 76(3):1049–1089.CrossrefGoogle Scholar
  • Jiang Z, Richmond RJ, Zhang T (2024) A portfolio approach to global imbalances. J. Finance 79:2025–2076.Google Scholar
  • Jiang EX, Yu GY, Zhang J (2022) Bank competition amid digital disruption: Implications for financial inclusion. Preprint, submitted August 10, http://dx.doi.org/10.2139/ssrn.4178420.Google Scholar
  • Keister T, Sanches D (2023) Should central banks issue digital currency? Rev. Econom. Stud. 90(1):404–431.CrossrefGoogle Scholar
  • Koijen RSJ, Yogo M (2019) A demand system approach to asset pricing. J. Political Econom. 127(4):1475–1515.CrossrefGoogle Scholar
  • Koijen RSJ, Yogo M (2020) Exchange rates and asset prices in a global demand system. NBER Working Papers No. 27342, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Koijen RSJ, Richmond RJ, Motohiro Y (2024) Which investors matter for equity valuations and expected returns? Rev. Econom. Stud. 91(4):2387–2424.CrossrefGoogle Scholar
  • Krishnamurthy A, Li W (2023) The demand for money, near-money, and treasury bonds. Rev. Financial Stud. 36(5):2091–2130.CrossrefGoogle Scholar
  • Krishnamurthy A, Vissing-Jorgensen A (2012) The aggregate demand for treasury debt. J. Political Econom. 120(2):233–267.CrossrefGoogle Scholar
  • Lou D (2012) A flow-based explanation for return predictability. Rev. Financial Stud. 25(12):3457–3489.CrossrefGoogle Scholar
  • Ma Y, Xiao K, Zeng Y (2019) Bank debt, mutual fund equity, and swing pricing in liquidity provision. Preprint, submitted December 5, http://dx.doi.org/10.2139/ssrn.3489673.Google Scholar
  • Moreira A, Savov A (2017) The macroeconomics of shadow banking. J. Finance 72(6):2381–2432.CrossrefGoogle Scholar
  • Nagel S (2016) The liquidity premium of near-money assets. Quart. J. Econom. 131(4):1927–1971.CrossrefGoogle Scholar
  • Nevo A (2001) Measuring market power in the ready-to-eat cereal industry. Econometrica 69(2):307–342.CrossrefGoogle Scholar
  • Parlour CA, Rajan U, Zhu H (2022) When fintech competes for payment flows. Rev. Financial Stud. 35(11):4985–5024.CrossrefGoogle Scholar
  • Sunderam A (2015) Money creation and the shadow banking system. Rev. Financial Stud. 28(4):939–977.CrossrefGoogle Scholar
  • Wang Y, Whited TM, Wu Y, Xiao Kairong (2022) Bank market power and monetary policy transmission: Evidence from a structural estimation. J. Finance 77(4):2093–2141.CrossrefGoogle Scholar
  • Whited TM, Wu Y, Xiao K (2022) Will central bank digital currency disintermediate banks? Preprint, submitted May 19, http://dx.doi.org/10.2139/ssrn.4112644.Google Scholar
  • Xiao K (2020) Monetary transmission through shadow banks. Rev. Financial Stud. 33(6):2379–2420.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.