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on Network Economics |
| By: | Snellman , Heli (Bank of Finland Research); Virén , Matti (Bank of Finland Research) |
| Abstract: | This paper deals with the issue of how the market structure in banking affects the choice of means of payment. In particular, the demand for cash is analysed from this point of view. The analysis is based on a simple spatial transactions model in which the banks’ optimization problem is solved. The solution quite clearly shows that monopoly banks have an incentive to restrict the number of ATMs to a minimum. In general, the number of ATMs depends on competitiveness in the banking sector. The predictions of the theoretical analysis are tested using panel data from 20 OECD countries for the period 1988–2003. Empirical analysis reveals that there is a strong and robust relationship between the number of ATM networks and the number of ATMs (in relation to population). It also reveals that the demand for cash depends both on the number of ATMs and ATM networks and on the popularity of other means of payment. Thus, the use of cash can be fairly well explained in a transaction demand framework, assuming proper controls for market structure and technical environment. |
| Keywords: | automated teller machine; demand for cash; banking; means of payment |
| JEL: | E41 E51 |
| Date: | 2006–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2006_021&r=net |
| By: | Vieille, Nicolas; Rosenberg, Dinah; Solan, Eilon |
| Abstract: | This paper presents a general model of information dissemination |
| Keywords: | private information; behavior; knowledge |
| JEL: | D82 D83 |
| Date: | 2006–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:0856&r=net |
| By: | Alberto Bucci (Department of Economics, Business and Statistics, University of Milan); Carmelo Parello (Catholic University of Louvain) |
| Abstract: | The influence of the degree of competition in the goods market on growth is analyzed by developing an endogenous growth model with horizontal innovation. Product market competition is measured by (1- Lerner index) and depends on both the share of factor inputs in total income and on the elasticity of substitution across goods. We find that the shape of the relationship between competition and growth can change dramatically according to which proxy of competition is used. We interpret our results in terms of the interplay between the resource allocation and the profit incentive effects. |
| Keywords: | Innovation, Product Market Competition, Endogenous Growth, Scale Effects, |
| Date: | 2006–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:bep:unimip:1032&r=net |