37 Matching Annotations
  1. Jan 2018
    1. Huawei could team up with one of these relatively fringe mobile players to sell Mate phones with one of these Wi-Fi plus cellular phone plans.  There's no better time to try than now. 

      Plan 3: HUAWEI has an uphill battle and it's clear that without a sales ecosystem in the United States, they're not going to sell MATE like hotcakes. Alliances need to be forged just as JD did. Their rivals, APPL and SAMSUNG have had their own missteps but to capitalize on their PR disasters they need to manage theirs too.

    2. . Maybe Amazon can also -- as it does with its own Kindle devices and some Android smartphones -- lower Mate prices by offering the phones with Amazon-sold advertisements on the home screens. 

      One of AMZN's advantages is that it is brand-neutral so far. This means that no alternative platforms can offer their advertising solutions to entice brands that could've been rejected by AMZN.

  2. Dec 2017
    1. Financial inclusion cannot afford to stall.

      Digital rewards and risks

      These solutions continue to evolve with dizzying speed. Efficient and effective fintech innovations that could hardly be imagined five years ago will change the face of financial inclusion decisively in the future. Biometric forms of ID are already being used in India and Pakistan.

      In China, Ant Financial has provided credit to more than 4 million small businesses using customers’ data rather than banking history. Other solutions include digitized government payments, crowdfunding, and person-to person lending.

      The future of our societies will be shaped by technology, for good and for bad. Threats related to digital financial services are hard to predict and preparation is vital.

      Laying the foundations

      The Special Advocate and her partners have identified a set of prerequisites—policies and infrastructure—needed in order for digital finance to take off and unleash financial inclusion.

      These include data privacy, cybersecurity, IDs, infrastructure such as reliable electricity, connectivity, interoperability, financial and digital literacy, and fair competition. Notably, their provision falls largely outside the financial sector.


      Finding solutions that work for everyone will require regulators and providers to engage actively with low-income customers; governments and businesses to co-design the objectives and action plans of national financial inclusion strategies; fintech innovators to help regulators create supportive rules; and digital operators to work with the standard-setting bodies to design principles that can protect the financial system as well as customers.

    1. OXXO convenience stores sell snacks, cell-phone top-ups and other quick purchases to millions of low-income Mexicans. Through its popular Saldazo financial account, it also gives its customers the opportunity to save money, make purchases, pay bills, and send funds cheaply and easily, with a success traditional banks cant easily match.

      Its model is hugely successful in Mexico the Saldazo account was launched in 2012 and it now has 7.3 million customers, 60 percent of whom are actively using their accounts.

      Visit to Mexico City in September 2017, she learned how the Saldazo account works from Maria Teresa Gaytan Lopez, a domestic worker who was visiting an OXXO branch to open her first account. María Teresa Gaytán López, a domestic worker who was visiting an OXXO branch to open her first account. For a fee of 50 pesos (approximately US$2.60), in less than five minutes she opened a savings account with a single form of ID, accessible via her mobile phone—no minimum balance and no paperwork.

      Before, she could never have had a financial account because she couldnt afford the minimum balance required by traditional banks.

  3. Nov 2017
    1. the model simulations indicate thatdi erent dimensions of nancial inclusion have a di erential impact on GDP and inequality and thatthere are trade-o s. There also exist rich interactions among the di erent dimensions of nancialinclusion. Financial sector policies that address these dimensions could be complementary in naturewith each other, but it can also be the case that implementing one policy reduces the e ectivenessof other policies.


    2. In this section, we zoom-in on a numerical comparison of the marginalresponses of income and inequality. The numbers in Table 3 are calculated as di erences betweenthe current state of the country (shown with the circle in 3-8) and the eventual steady-state valuewhen the economy's credit to investment ratio is increased by one percentage point.
    3. e distance to a bank branch matters for credit access, which suggeststhat policies that promote branch openings in rural, unbanked locations would help reduce the creditparticipation cost

      Because financial inclusion is multidimensional, it is dicult to identify precisely the meaningof these three parameters from an empirical standpoint.

    4. Impact on GDP and Inequality: A Numerical Comparison

      A more relevant section

    5. Table 1: Overview of the Data

      Click here for overview of data

    6. We calibrate the model for 6 countries at various stages of economic development: 3 low-incomecountries (Uganda in 2005, Kenya in 2006, and Mozambique in 2006), and 3 emerging marketeconomies (Malaysia in 2007, Philippines in 2008 and Egypt in 2007).

      Data & Calibration

    7. , the policy that is most e ectivein increasing access (reducing participation costs) bene ts the poor and talented agents primarily,while wealthy agents lose due to higher interest rates and wages. By contrast, policies that target nancial depth (relaxing borrowing constraints) bene t wealthy and talented agents but can imposelosses on wealthy but less-talented agents.

      Financial inclusion facilitates both 1. lower financing cost 2. laxer borrowing constraints. 1. reduces inequality while 2. increases it.

    8. The model simulations also indicate that di erent dimensions of nancial inclusion unambiguouslyincrease the economy's TFP as talented entrepreneurs, who desire to operate rms at a larger scale,bene t disproportionately. However, they have a di erential impact on GDP and inequality andthere are trade-o s.

      Productivity grows under enhanced financial inclusion, but its translation onto GDP growth and inequality is ambiguous.

    9. The quantitative model developed in this paper enables us to examine the impact of various nancial inclusion policies on GDP, income inequality (measured by the Gini coecient) and overallwelfare

      Identical to our purpose, perhaps just lacking the financial stability/ volatility part.

    10. We calibrate the model using data from the World Bank Enterprise Surveys and World Devel-opment Indicators

      The surveys cover a broad range of business environment topics including access to fi nance, corruption, infrastructure, crime, competition, and performance measures.

    11. The Enterprise Survey is a rm-level survey of a representative sample of rmsin an economy.

      Good source of data

    12. Once in the credit regime, individuals can obtain credit, but its size is constrained by twoadditional types of nancial frictions { limited commitment and asymmetric information. Thesedistort the allocation of capital and entrepreneurial talent in the economy, lowering aggregatetotal factor productivity (TFP). T


    13. The model features an economy with two \ nancial regimes", one with credit and one withsavings only. Individuals in the savings regime can save (i.e., make a deposit in nancial institutionsto transfer wealth over time) but cannot borrow. Participation in the savings regime is free, butindividuals must may a participation cost to borrow.
    14. In the model, agents are heterogeneous { distinguished from each other by wealth and talent.Individuals choose in each period whether to become an entrepreneur or to supply labor for a wage.Workers supply labor to entrepreneurs and are paid the equilibrium wage. Entrepreneurs haveaccess to a technology that uses capital and labor for production. In equilibrium, only talentedindividuals with a certain level of wealth choose to become entrepreneurs.

      In this model, a heterogenous population is 'created' and differentiated by their talent and wealth. Only people with enough of both can be entrepreneur, otherwise they will stay as wage earners.

    15. In this paper, we develop a micro-founded general equilibrium model toaddress these issues. This approach o ers a consistent framework to elucidate the linkages between nancial inclusion, GDP, and inequality, and to quantify the impact of speci c policy changes.
    1. taking more systemic risk in the pursuit of increasing financial inclusion.

      this is a policy consideration that can be included in the regression model by adding a covaraince term E[Inclusion]*E[Stability].

      Basically we want to know the tradeoff between introducing more financial access and ceding financial stability

    2. for example, civil conflict, a lack of rule of law, or severe income and wealth inequality cause both low financial inclusion and low growth. Addressing those other issues may help in promoting growth and possibly also inclusion, and promoting the opening of bank accounts and other financial services may not help much and could indeed be harmful

      We have to control for the mentioned variables

    3. On the users’ side, a number of indicators are examined: share of firms and investment financed by bank credit, share of the population with account at a formal financial institution by gender and by income groups, share of firms citing finance as a major obstacle, share of adults using accounts to receive transfers and wages, share of bank borrowers in the population, and, finally, the extent of the use of insurance products.
    4. On the providers’ side, the index of Financial Institutions Access introduced in Sahay and others (2015a) covered the number of branches of commercial banks and ATMs per 100,000 adults.

      Supply side data is ATM and bank branches (access points)

    5. As The World Bank (2014) points out, the concept of financial inclusion could range from “access and use of services provided responsibly and sustainably” to “delivery of financial services at affordable costs to disadvantaged and low-income segments of society

      These definitions can be vague, so we can propose to narrow them down to a more digestible, quantifiable form

    6. Financial Inclusion: Can It Meet Multiple Macroeconomic Goals? Monetary and Capital Markets Department with inputs from Strategy and Policy Review Department and other departments
    7. September 2015
    8. and using five-year averages of all variables to smooth out cyclical variations

      Need to account for cyclical trends

    9. Since financial inclusion is a multidimensional concept, its macroeconomic effects depend on its nature. This paper examines the linkages of financial inclusion with economic growth, financial and economic stability, and inequality; it offers three key policy-relevant findings.

      Emphasis on the 3 key dependent variables: economic stability, growth and inequality

    10. JEK wants to do this: JEK updated on the proposed macro performance indicators to link to shared prosperity as the desired outcome for financial inclusion:

      • Higher income of B40 households: Increased income from digital transactions (e.g. sell handicraft on social media, paid via bank account). This falls under income growth la.
      • Protection from shocks: Lower incidence of financial distress amongst those who save. While this is financial stability
    11. Financial Inclusion: Can It Meet Multiple Macroeconomic Goals?


    1. The Solow–Swan model augmented with human capital predicts that the income levels of poor countries will tend to catch up with or converge towards the income levels of rich countries if the poor countries have similar savings rates for both physical capital and human capital as a share of output, a process known as conditional convergence.

      Income convergence of the poor and rich people will happen conditional on them enjoying similar savings rates. Otherwise, it might not happen.

    1. Maybe not a ELI5, but: Moments are expectations of things. E(X) is often called the "first moment," E(X2 ) is the "second moment," etc. They can also be more complicated, like E(exp(5x+y)), or whatever. In econometrics, you're trying to figure out something about the underlying distribution of your y's and your x's (and the errors). Often you don't know the shape of the distribution, but you know some moments of the distribution. This is useful because you can't use maximum likelihood estimation unless you make assumptions on the entire distribution. With ordinary least squares, you assume that E(ex) = 0, that is, the errors are uncorrelated with the regressors. You can write e = y - xbeta, to get a moment condition E(x(y-xbeta)) = 0. If you do GMM with this moment condition, you get the regular OLS estimator. If you have endogeneity of some kind, you don't know that E(ex) = 0, but you might have some instruments Z, such that E(ez) = 0. This gives you the moment condition E(z(y - x*beta)) = 0. GMM is nice because it makes relatively weak assumptions compared to other ways of estimating parameters. I hope that helps!

      GMM - I don't get it, at all. What are moments? How are they used? Why are they used? Thanks all!

    1. offer poor households access to a cash-flow management facility that combines convenience with capacity. It would provide the chance to make small-scale savings of any value at any time with the right to withdraw on demand; and at the same time it would offer loans of a modest value that can be taken quickly, on demand, at any time, and repaid in small (and if necessary, irregular) installments. – p. 178

      so an app would work. one that provides microsavings and microfinance products.

    1. Loans can now be "topped up": halfway into a one-year loan repayment, you can borrow back to the full amount.

      So is it a looser application for the ones already on credit?

    2. Portfolios of the Poor. The new book's four authors---Daryl Collins, Jonathan Morduch, Stuart Rutherford, and Orlanda Ruthven---took up an idea of David Hulme, to compile financial diaries of poor households. A researcher visits a poor household repeatedly, say, every fortnight for a year, and gathers detailed information on what its members earned, spent, borrowed, and saved since the last visit.
    3. Much glory in the social sciences goes to those who study causality, who (seem to) show that A causes B. Yet the most enlightening work is often just plain descriptive, coming from a good, long stare at A or B.

      Is regression models from a long tracking really more important than its descriptive conclusions?

    1. It is understood that Excel Force MSC Bhd (EForce), a stockbroking solutions provider, plans to expand into the insurance sector

      EForce has quadrupled since last December :o