Blockchain Papers

Rongxin Chen, Gabriele M. Lepori, Chung-Ching Tai, Ming‐Chien Sung

No abstract is available for this record.

Lin Hao

Recent Non-Fungible Token become hot because of many giant internet companies start to work on metaverse. It provides a new style of virtual assets and brings a new idea to protect virtual data. Based on the Non-Fungible Token characteristic, it is a proposed a framework for Non-Fungible Token development to virtual assets.

Xiaodong Yang, Weilong Wang, Xufeng Su, Siyu Ren · 7 authors

Abstract Under the system of political centralization and economic decentralization, the expanding scale of land finance and the increasingly severe environmental pressure have jointly become crucial features of China's urban development. Therefore, it is of great practical significance to study the intrinsic mechanism of land finance on haze pollution for China's economy to achieve kinetic energy transformation and green development. This paper empirically analyzes the impact of land finance on haze pollution using a dynamic spatial Durbin model based on panel data of 269 prefecture‐level cities in China from 2004 to 2017. The statistical results show that haze pollution has a significant “snowball effect” and space spillover effect. Land finance has a significant positive effect on haze pollution. Land transfer both by agreement and by bid invitation, auction, and listing have significant positive effect on haze pollution. However, the promoting effect of land transfer by agreement on haze pollution is significantly higher than that of land sale by bid invitation, auction, and listing. Furthermore, regional heterogeneity implies that for cities in the eastern region, land finance is conducive to alleviating haze pollution. In contrast, for cities in the central and western regions, land finance significantly promotes haze pollution.

Amin Mekacher, Alberto Bracci, Matthieu Nadini, Mauro Martino · 7 authors

We quantify Non Fungible Token (NFT) rarity and investigate how it impacts market behaviour by analysing a dataset of 3.7M transactions collected between January 2018 and June 2022, involving 1.4M NFTs distributed across 410 collections. First, we consider the rarity of an NFT based on the set of human-readable attributes it possesses and show that most collections present heterogeneous rarity patterns, with few rare NFTs and a large number of more common ones. Then, we analyze market performance and show that, on average, rarer NFTs: (i) sell for higher prices, (ii) are traded less frequently, (iii) guarantee higher returns on investment (ROIs), and (iv) are less risky, i.e., less prone to yield negative returns. We anticipate that these findings will be of interest to researchers as well as NFT creators, collectors, and traders.

Junhua Chen, Na Liu

This study examines the impact mechanism of fiscal decentralization on the overall efficiency, scale efficiency, and management efficiency of social housing provision in China. We find that fiscal decentralization is negatively related to the overall efficiency and management efficiency but has no impact on scale efficiency. Further, fiscal decentralization decreases management efficiency by increasing local governments' dependence on land finance. From the point of regional heterogeneity, fiscal decentralization in the Chinese eastern region has led to a significant decrease in management efficiency while that of the middle and western regions is insignificant.

Rainald Borck, Jun Oshiro, Yasuhiro Sato

We develop a model of property taxation and characterize equilibria under three alternative taxation regimes often used in the public finance literature: decentralized taxation, centralized taxation, and “rent seeking” regimes. We show that decentralized taxation results in inefficiently high tax rates, whereas centralized taxation yields a common optimal tax rate, and tax rates in the rent-seeking regime can be either inefficiently high or low. We quantify the effects of switching from the observed tax system to the three regimes for Japan and Germany. The decentralized or rent-seeking regime best describes the Japanese tax system, whereas the centralized regime does so for Germany. We also quantify the welfare effects of regime changes.

Alastair Moore, Niall Roche, Nikhil Vadgama

No abstract is available for this record.

R. Wilson Freyermuth, Christopher K. Odinet

No abstract is available for this record.

Kristof Lommers

No abstract is available for this record.

Kanis Saengchote

The rapid rise of cryptocurrency prices led to concerns (e.g. the Financial Stability Board) that this wealth accumulation could detrimentally spill over into other parts of the economy, but evidence is limited. We exploit the tendency for metaverses to issue their own cryptocurrencies along with non-fungible tokens (NFTs) representing virtual real estate ownership (LAND) to provide evidence of the wealth effect. Cryptocurrency prices and their corresponding real estate prices are highly correlated (more than 0.96), and cryptocurrency prices Granger cause LAND prices. This metaverse bubble reminisces the 1920s American real estate bubble that preceded the 1929 stock market crash.

Kanis Saengchote, Tālis J. Putniņš, Krislert Samphantharak

Decentralized Finance (DeFi) is built on a fundamentally different paradigm: rather than having to trust individuals and institutions, participants in DeFi potentially only have to trust computer code that is enforced by a decentralized network of computers. We examine a natural experiment that exogenously stress tests this alternative paradigm by revealing the identities of individuals associated with a DeFi protocol, including a convicted criminal. We find that, in practice, DeFi does not (yet) fully remove the need for trust in individuals. Our findings suggest that that because smart contracts are incomplete, they are subject to run risk (Allen and Gale, 2004) and personal character and trust of individuals are still relevant in this alternative financial system.

Mieszko Mazur, Efstathios Polyzos

This article provides an overview of the non-fungible tokens (NFTs) as an investment class. The first part focuses on the NFT infrastructure including the NFT primary and secondary markets, different types of NFT exchanges, NFT aggregators, NFT borrowing and landing, NFT staking, and finally NFT fundraising. The second part investigates the leading blue-chip NFT collections and their performance in the short- and long-term, both during the bull and bear markets. Analyzing close to two million NFT transactions, we find that profile picture (PFP) NFTs dominate the NFT market and yield exceptionally high returns both on the raw and market-adjusted basis. For example, NFTs from the collection Bored Ape Yacht Club (BAYC) deliver a buy-and-hold return of close to 2,000%. Furthermore, NFTs from other categories (art, gaming, metaverse) do not perform as well as PFPs, however, they outperform the cryptocurrency market by roughly 100%.

Christopher Yencha

No abstract is available for this record.

Sean Wilkoff, Serhat Yildiz

No abstract is available for this record.

Nicola Borri, Yukun Liu, Aleh Tsyvinski

No abstract is available for this record.

Yuen Leng Chow, Kok Keong Tan

Purpose Blockchain and distributed ledger technologies are set to disrupt the real estate sector in all areas: ownership, sale, management and investment. Tokenization moves physical real estate to the digital space and could result in substantial cost savings in the pre- and post-tokenization process. This article discusses whether real estate as an asset class is ready for digitalization in the Asia-Pacific (APAC) region. Design/methodology/approach Globally, the APAC region has the highest digital adaptation/adoption rates. Regulators in the region are also moving fast to clarify their stance on digital assets. This article adopts a holistic view, from trends, regulations, and technology, to discuss the benefits and challenges of digitalizing real estate in APAC. Findings Real estate tokenization is a nascent market but platforms like BrickX, KASA, ADDX, and Minterest have successfully launched real estate tokens in Australia, South Korea, and Singapore, respectively. Tokenization may prove to be a viable funding source for those relatively poorly capitalized financial markets in the APAC region. Practical implications This paper discusses the current regulatory and business contexts in relation to the pace of tokenization of real estate in APAC. Opportunities and difficulties are outlined in a concise manner to facilitate more discussion in this area. Originality/value Existing reports and research articles tend to focus on the western markets. This article provides a new perspective on tokenization, specifically in the APAC context.

Xuanxuan Zhang

This study aims to evaluate and analyze the implementation effect by central government of the housing rental market in different cities in the context of rent and purchase in parallel. Game theory and panel data empirical analysis were used to study the subsidy transmission mechanism of the development of the housing rental market under the perspective of financial decentralization. The central finance played an indirect role in the development of the local housing rental market, and the local government’s support for the local housing rental market was an intermediary variable. To promote the rapid and healthy development of the domestic housing rental market, the central government needs to make top-level design and give certain local policies and financial support. At the same time, local governments must actively implement relevant policies of the central government and support corresponding local support policies.

Abhinava Tripathi, Alok Dixit, Vipul Vipul

Motivated by the unique transaction cost structure of the cryptocurrency (CC) market1, this study investigates the phenomenon of liquidity commonality across a sample of 53 CCs. The study employs the google search volume index (GSVI) measure to capture the retail investor’s attention towards the CC market. Using the quantile regression method, we document the liquidity dynamics of CCs that is contrasting to other asset classes, and is ascribed to its unique transaction cost structure. In view of the relatively high liquidity commonality levels found in the CC market, this paper sounds a note of caution to retail investors on episodic non-availability of liquidity in CCs.

Kuzey Yılmaz, Muharrem Yeşilırmak

Abstract The Housing Choice Voucher Program assists low‐income families to afford decent housing and provide them with better economic opportunities. There is growing evidence that public transportation plays an important role in shaping the residential location choices of low‐income households. However, transportation has not been a major focus of the research related to housing voucher programs. We develop a general equilibrium model of a city with multiple districts, decentralized employment, multiple commuting modes, and locally financed education. We compare housing vouchers with transportation vouchers with respect to poverty deconcentration, educational quality in each district, unskilled employment in the suburbs, and welfare.

Patrick Lecomte

This chapter deals with real estate tokens and tokenisation, a process involving Digital Ledger Technologies and blockchains. The self-proclaimed ‘revolution’ triggered by real estate tokenisation has become somewhat of a buzzword. The concept of tokenisation has first emerged as an application of distributed ledger technology more than as a financial concept. In the context of commercial real estate, tokenisation is a broad term which can materialise under many forms by using tokens to represent a range of ownership interests, e.g. equity in legal structures such as real estate investment trusts or private equity real estate funds, shares in debt secured against a portfolio of properties, cash flow stream from a single property. Fractionalisation of real estate assets, the process of splitting real estate assets into small comportment parts, is not a new concept in real estate finance. Tokenisation’s situation is no different from the one encountered with unitisation in the past.

Xieer Dai

The main focus of this paper is to analyze the effect of local public finance on spatial land use through economic models and empirical evidence from Israel. The theoretic models extends the Alonso-Mill-Muth model by incorporating local public finance. The first finding is that steady population growth provides a channel for land capitalization through the mechanism of long term land property right. This implies a possible conflict of interest if ownership of land leasing revenue and the ad valorem property tax are not consistent. The empirical section examines one of the implications derived from the models highlighting a possible inconsistency between central and local governments due to land ownership centralization. This causes local tax revenue inequality among Israeli municipalities. Statistical evidence shows that cities with a larger share business land use can generate more tax without assistance from the central government, and are therefore more fiscal independent. Fiscal status has a significant effect on the planning time of residential construction. Municipalities with higher local tax revenues have shorter planning time(higher probability of acceptance) conditional on the plan’s size and other features.

Mitchell Goldberg, Peter Kügler, Fabian Schär

No abstract is available for this record.

Benjamin Zyndorf

In this paper I argue that the 2008 housing market crash was the culmination of a decades-long legislative process enabled by the federal government. I analyze the effects of these policies on Monroe County, Pennsylvania, which became and continues to be the site of one the worst foreclosure crises nationally. Federal policies that promoted decentralization, deindustrialization, and deregulation created the conditions in Monroe County that allowed real estate developers, banks, and brokers to take advantage of an urban crisis that was only 1.5 hours away in New York City—without traffic. I describe the process through the story of real estate developer Gene Percudani. Enabled by the federal government, Percudani lured black and Hispanic residents from New York City who were looking for affordable single family homes, safe neighborhoods, and good schools. Not only did these migrants not escape the urban crisis but continued to be victims of it—far away from home.

Christine A. Parlour

No abstract is available for this record.