The Economics of Payments IV

April 1-2, 2010
Thursday, April 1, 2010
8:15 a.m. Breakfast
8:45 a.m. Introductory Remarks
Lauren Hargraves, Federal Reserve Bank of New York
9:00 a.m. Invited Lecture: Payment system governance - a neglected systemic risk?
Ross Anderson, University of Cambridge


Introduction: Richard Sullivan, Federal Reserve Bank of Kansas City
10:00 a.m. Break
10:30 a.m. Session I: Theories of Payment Cards
Chair: Robert Hunt, Federal Reserve Bank of Philadelphia

Optimal Interchange Fees for Card Payments and Cash Withdrawals PDF
Marianne Verdier, Université Paris Ouest Nanterre

Discussant: Sujit “Bob” Chakravorti, Federal Reserve Bank of Chicago

Pricing Payment Cards PDF
Özlem Bedre, Toulouse School of Economics and Ecole Polytechnique, Paris, and Emilio Calvano, Bocconi University

Discussant: Zhu Wang, Federal Reserve Bank of Kansas City
12:00 p.m. Lunch
2:00 p.m. Session II: Calibrations of Retail Payment Theories
Chair: Mark Manuszak, Board of Governors of the Federal Reserve System

Regulation and the Market for Checks PDF
Semih Tumen, University of Chicago

Discussant: Gene Amromin, Federal Reserve Bank of Chicago

Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations PDF
Scott Schuh, Oz Shy, and Joanna Stavins, Federal Reserve Bank of Boston

Discussant: Irina Telyukova, University of California, San Diego
3:30 p.m. Coffee Break
4:00 p.m. Session III: Empirical Studies of Retail Payments
Chair: Fumiko Hayashi, Federal Reserve Bank of Kansas City

Limited and Varying Consumer Attention: Evidence from Shocks to the Salience of Penalty Fees
Victor Stango, University of California, Davis, and Jonathan Zinman, Dartmouth College

Discussant: Wilko Bolt, De Nederlandsche Bank

Demand for Currency, New Technology and the Adoption of Electronic Money: Evidence using Individual Household Data from Japan PDF
Hiroshi Fujiki, Bank of Japan, and Migiwa Tanaka, Hong Kong University of Science and Technology

Discussant: Elizabeth Klee, Board of Governors of the Federal Reserve System
5:30 p.m. Reception
Friday, April 2, 2010
8:30 a.m. Continental Breakfast
9:00 a.m. Session I: Disruptions in Wholesale Payment Systems
Chair: Richard Porter, Federal Reserve Bank of Chicago

Bank Behavior and Risks in CHAPS during the Financial Turmoil of 2008
Evangelos Benos, Rod Garratt, Anne Wetherilt, and Peter Zimmerman, Bank of England

Discussant: Viral Acharya, New York University

Disruptions in Large Value Payment Systems: An Experimental Approach PDF
Klaus Abbink, University of Amsterdam; Ronald Bosman and Ronald Heijmans, De Nederlandsche Bank; and Frans van Winden, University of Amsterdam

Discussant: Olivier Armantier, Federal Reserve Bank of New York
10:30 a.m. Break
11:00 a.m. Invited Lecture: OTC Derivatives PDF
Ada Li and Theo Lubke, Federal Reserve Bank of New York

Introduction: James McAndrews, Federal Reserve Bank of New York
12:00 p.m. Lunch
1:30 p.m. Session II: Theories of Wholesale Payments
Chair: David Mills, Board of Governors of the Federal Reserve System

Liquidity Needs in Economies with Interconnected Financial Obligations PDF
Julio Rotemberg, Harvard Business School

Discussant: Charles M. Kahn, University of Illinois

The Emergence and Future of Central Counterparties
Thorsten Koeppl, Queen's University, and Cyril Monnet, Federal Reserve Bank of Philadelphia

Discussant: Ed Nosal, Federal Reserve Bank of Chicago
3:00 p.m. Break
3:30 p.m. Session III: Collateral in Settlement Systems
Chair: Travis Nesmith, Board of Governors of the Federal Reserve System

Collateral Pool Settlement System PDF
Marius Jurgilas and Tomohiro Ota, Bank of England

Discussant: Thomas Nellen, Swiss National Bank
4:15 p.m. Close
Conference Location
Federal Reserve Bank of New York
33 Liberty Street
12th Floor Conference Center
New York, New York
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