In this paper, we analyze the spending decisions of over 1.5 million Americans who vary in their degree of revealed credit constraints. Specifically, we analyze how these Americans spend their income tax refunds, using transaction-level data from a stored-value card product. Card-holders may choose among several tax settlement and loan options, effectively receiving cash as much as 90 days earl...

An oo-line electronic cash system is presented that ooers appreciably greater security and better privacy than currently considered electronic cash systems with similar functionality. A tamper-resistant smart card, issued by the bank, controls a counter that represents the amount of electronic cash carried by the user. The use of a counter ensures that the computation and communication complexi...

Market research companies expect that low value products such as online music and videos will become an important source of revenues for merchants in the future (Leong 2003). These revenues will mostly add up from individual payments for such products rather than from subscriptions (Ulph Jennings 2003). Content spending reports of Online Publishers Association already show that subscriptions sl...

We discuss optimal trading strategies for general utility functions in portfolios of cash and stocks subject to small proportional transaction costs. We present a new interpretation of scalings found by Soner, Shreve, and others. To leading order in the small transaction cost parameter, the free boundary problem for the expected utility’s value function is shown to be dual, in the sense of Lagr...

The behavior of institutional investors in money market securities, as exemplified by changes in assets allocated to money market mutual funds, is examined using a unique transaction data set and partial adjustment framework in order to validate fund managers and traders expectations. Individual transaction data is aggregated and separated into a low and high frequency component. The low freque...

Because in the theory of economics, the value of a company is based on the current value of future cash flows and profit is used as a substitute for cash flows, profit forecasting is of particular importance. In the research, the effect of rounding and revision in predicting earnings per share on the investors' attention in Iran has been investigated. After designing the investors' attention as...

In this paper a novel electronic payment protocol suitable for “peer-to-peer” (P2P) networks is presented. It implements electronic cash-based transactions, between buyers and merchants. It is based on a bank account, though it can be easily extended and can be readily applied to other account payment models like debit cards. The proposed protocol is designed using Millicent’s main concept (scr...

We establish the fundamental theorem of asset pricing to a model with proportional transaction costs on trading in shares and different interest rates for borrowing and lending of cash. We show that such a model is free of arbitrage if and only if one can embed in it a friction-free model that is itself free of arbitrage, i.e. if there exists an artificial friction-free price for the stock betw...