Banking the unbanked: the Mzansi intervention in South Africa:

Purpose This paper aims to understand household’s latent behaviour decision making in accessing financial services. In this analysis we look at the determinants of the choice of the pre-entry Mzansi account by consumers in South Africa. Design/methodology/approach We use 102 variables, grouped in the following categories: basic literacy, understanding financial terms, targets for financial advice, desired financial education and financial perception. Employing a computationally efficient variable selection algorithm we study which variables can satisfactorily explain the choice of a Mzansi account. Findings The Mzansi intervention is appealing to individuals with basic but insufficient financial education. Aspirations seem to be very influential in revealing the choice of financial services and to this end Mzansi is perceived as a pre-entry account not meeting the aspirations of individuals aiming to climb up the financial services ladder. We find that Mzansi holders view the account mainly as a vehicle for receiving payments, but on the other hand are debt-averse and inclined to save. Hence although there is at present no concrete evidence that the Mzansi intervention increases access to finance via diversification (i.e. by recruiting customers into higher level accounts and services) our analysis shows that this is very likely to be the case. Originality/value The issue of demand side constraints on access to finance have been largely ignored in the theoretical and empirical literature. This paper undertakes some preliminary steps in addressing this gap

Access to financial services: the case of the ‘Mzansi’ account in South Africa

The presence of rationing of financial services in the developing countries is a major obstacle to achieving sustainable growth. In recent years there have been co-ordinated efforts to increase the level of financial inclusion, i.e. to reduce the supply-side constraints restricting access to finance. This paper aims to understand household’s latent behaviour decision making in accessing financial services, by analysing an entry level Mzansi account in South Africa. The willingness to access financial services is not taken as given, but it is instead defined by perceptions and attitudes. The Mzansi intervention is appealing to individuals with basic but insufficient financial education. Aspirations seem to be very influential in revealing the choice of financial services and to this end, Mzansi is perceived as a pre-entry account not meeting the aspirations of individuals aiming to climb up the financial services ladder

(WP 2018-02) Extending Behavioral Economics’ Methodological Critique of Rational Choice Theory to Include Counterfactual Reasoning

This paper extends behavioral economics’ realist methodological critique of rational choice theory to include the type of logical reasoning underlying its axiomatic foundations. A purely realist critique ignores Kahneman’s emphasis on how the theory’s axiomatic foundations make it normative. I extend his critique to the theory’s reliance on classical logic, which excludes the concept of possibility employed in counterfactual reasoning. Nudge theory reflects this in employing counterfactual conditionals. This answers the complaint that the Homo sapiens agent conception ultimately reduces to a Homo economicus conception, and also provides grounds for treating Homo sapiens as an adaptive, non-optimizing, reflexive agent

Computational Sociolinguistics: A Survey

Language is a social phenomenon and variation is inherent to its social nature. Recently, there has been a surge of interest within the computational linguistics (CL) community in the social dimension of language. In this article we present a survey of the emerging field of "Computational Sociolinguistics" that reflects this increased interest. We aim to provide a comprehensive overview of CL research on sociolinguistic themes, featuring topics such as the relation between language and social identity, language use in social interaction and multilingual communication. Moreover, we demonstrate the potential for synergy between the research communities involved, by showing how the large-scale data-driven methods that are widely used in CL can complement existing sociolinguistic studies, and how sociolinguistics can inform and challenge the methods and assumptions employed in CL studies. We hope to convey the possible benefits of a closer collaboration between the two communities and conclude with a discussion of open challenges.Comment: To appear in Computational Linguistics. Accepted for publication: 18th February, 201

Financial contagion: Evolutionary optimisation of a multinational agent-based model

Over the past two decades, financial market crises with similar features have occurred in different regions of the world. Unstable cross-market linkages during a crisis are referred to as financial contagion. We simulate crisis transmission in the context of a model of market participants adopting various strategies; this allows testing for financial contagion under alternative scenarios. Using a minority game approach, we develop an agent-based multinational model and investigate the reasons for contagion. Although the phenomenon has been extensively investigated in the financial literature, it has not been studied through computational intelligence techniques. Our simulations shed light on parameter values and characteristics which can be exploited to detect contagion at an earlier stage, hence recognising financial crises with the potential to destabilise cross-market linkages. In the real world, such information would be extremely valuable in developing appropriate risk management strategies

Evolving structure-function mappings in cognitive neuroscience using genetic programming

A challenging goal of psychology and neuroscience is to map cognitive functions onto neuroanatomical structures. This paper shows how computational methods based upon evolutionary algorithms can facilitate the search for satisfactory mappings by efficiently combining constraints from neuroanatomy and physiology (the structures) with constraints from behavioural experiments (the functions). This methodology involves creation of a database coding for known neuroanatomical and physiological constraints, for mental programs made of primitive cognitive functions, and for typical experiments with their behavioural results. The evolutionary algorithms evolve theories mapping structures to functions in order to optimize the fit with the actual data. These theories lead to new, empirically testable predictions. The role of the prefrontal cortex in humans is discussed as an example. This methodology can be applied to the study of structures or functions alone, and can also be used to study other complex systems. (This article does not exactly replicate the final version published in the Journal of Swiss Psychology. It is not a copy of the original published article and is not suitable for citation.

What can developmental disorders tell us about the neurocomputational constraints that shape development? the case of Williams syndrome

The uneven cognitive phenotype in the adult outcome of Williams syndrome has led some researchers to make strong claims about the modularity of the brain and the purported genetically determined, innate specification of cognitive modules. Such arguments have particularly been marshaled with respect to language. We challenge this direct generalization from adult phenotypic outcomes to genetic specification and consider instead how genetic disorders provide clues to the constraints on plasticity that shape the outcome of development. We specifically examine behavioral studies, brain imaging, and computational modeling of language in Williams syndrome but contend that our theoretical arguments apply equally to other cognitive domains and other developmental disorders. While acknowledging that selective deficits in normal adult patients might justify claims about cognitive modularity, we question whether similar, seemingly selective deficits found in genetic disorders can be used to argue that such cognitive modules are prespecified in infant brains. Cognitive modules are, in our view, the outcome of development, not its starting point. We note that most work on genetic disorders ignores one vital factor, the actual process of ontogenetic development, and argue that it is vital to view genetic disorders as proceeding under different neurocomputational constraints, not as demonstrations of static modularity

OPTIMAL LAND CONVERSION AT THE RURAL-URBAN FRINGE WITH POSITIVE AND NEGATIVE AGRICULTURAL EXTERNALITIES

Bid-rent curves are incorporated in a stochastic dynamic programming model of land development around a city when farmland generates both positive and negative externalities. The model delineates how the quantities of land in various uses over time should depend on the relative social weights assigned to the competing agricultural externalities.Land Economics/Use,