Search

Income Redistribution, Consumer Credit, and Keeping up with the Riches

In this study, we set up a DSGE model with upward looking consumption comparison and show that consumption externalities are an important driver of consumer credit dynamics. Our model economy is populated by two different household types. Investors, who hold the economy’s capital stock, own the firms and supply credit, and workers, who supply labor and demand credit to finance consumption. Furthermore, ...

Thinking about Tomorrow? Predicting Experimental Choice Behavior and Life Outcomes from a Survey Measure of Present Bias

Using a representative sample of the German adult population, this paper investigates the extent to which a survey measure of present bias predicts present-biased choice behavior in incentive-compatible experiments and real-world outcomes related to in-vestments in financial assets and human capital. The results are threefold. First, the survey and experimental measures of present bias are significantly ...

Financial Literacy Promotes Financial Inclusion in Both Poor and Rich Countries

For social and economic reasons, national economies benefit from the inclusion of as many people as possible in financial services. In a cross country study, the present study shows that financial literacy for the general population promotes financial inclusion. This relationship goes beyond the effect of higher economic or financial development. And the effect of higher levels of financial literacy ...

Does Financial Literacy Improve Financial Inclusion? Cross Country Evidence

While financial inclusion is typically addressed by improving the financial infrastructure we show that financial literacy, representing the demand-side of financial markets, also has a beneficial effect. We study this effect at the cross-country level, which allows to consider institutional variation. Regarding “access to finance”, financial infrastructure and financial literacy are mainly substitutes. ...

BCCP Conference and Policy Forum 2017

The tremendous growth of digital transactions – mainly through online platforms – has profoundly affected the way we interact and has opened vast opportunities to improve our lives. The disruptive impact of this process is driven by one core feature: its ability to reduce inefficiencies. Consumers have benefited from an unprecedented proliferation of new services and products that...

BCCP Conference and Policy Forum 2017: Welcome

BCCP Conference and Policy Forum 2017: Policy Roundtable: Consumer and Competition Policy in Platform Markets

The emergence of online platforms has decreased transaction costs considerably, increased price transparency and hence enabled consumers to more easily compare and purchase products and services. At the same time, platforms may achieve market power leading to undesirable market outcomes. Is existing consumer protection law appropriate to address concerns arising on online platforms? Are...

BCCP Conference and Policy Forum 2017: Platform Competition: The Sharing Economy

The sharing economy relies on online platforms to bring together providers and consumers of goods and services. How do platforms compete in these two-sided markets characterized by direct and indirect network effects? Which pricing strategies do these new online platforms adopt? How does rapid innovation ubiquitous in these markets affect competition between platforms? How do new digital...

BCCP Conference and Policy Forum 2017: BCCP Distinguished Policy Fellow Award

Gerd Billen, State Secretary to the Federal Minister of Justice and Consumer Protection, received the BCCP Distinguished Policy Fellow Award. The fellowship was awarded by  Gerhard Wagner, Professor of Law, Humboldt University Berlin.

BCCP Conference and Policy Forum 2017: Algorithms and Consumer Targeting

Digital markets are characterized by consumer targeting and customization of products and services. Firms such as Amazon or Google use algorithms to increase their product quality, such as search results or the targeting of advertising. These algorithms rely on past consumer search and browsing behavior to learn and improve results in real-time. This session discusses the extent to which the use...