Competition through innovation : ATMs in Italian banks
This paper reports results from a study of location, ownership, and acquisitions of automated teller machines (ATMs) by a sample of large Italian banks between 1991 and 1995. The sample banks had 85% of Italian banking assets. Data are collected at the provincial level for each bank. The underlying model is recursive; a bank is presumed to make branching decisions (analyzed in a separate paper) and then, conditional on branching decisions, decisions about ATMs. Several sets of cross-sectional data are studied using OLS and Tobit models yielding the following results: 1) The logarithm of ATMs in a province is related positively to the logarithms of interest-bearing deposits and GDP and negatively to the logarithm of population, as was predicted from a variation of Baumol's transactions demand for cash model; 2) The number of a bank's ATMs in a province is related positively to the numbers of its branches and deposit accounts, a province's per capita GDP, the bank's deposits, and the bank's number of employees per branch in the province and negatively to the bank's share of a province's branches; 3) Changes in a bank's ATMs in a province are positively related to changes in the number of its branches and those of competitors; and 4) Concentration indices of ATMs, branches, deposits, and loans decreased at the provincial level between 1991 and 1995.
(This abstract was borrowed from another version of this item.)
|Date of creation:||1999|
|Date of revision:|
|Contact details of provider:|| Postal: UNIVERSITY OF WISCONSIN MADISON, SOCIAL SYSTEMS RESEARCH INSTITUTE(S.S.R.I.), MADISON WISCONSIN 53706 U.S.A.|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-41, August.
- Timothy H. Hannan & John M. McDowell, 1984. "The Determinants of Technology Adoption: The Case of the Banking Firm," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 328-335, Autumn.
- Matutes, Carmen & Padilla, A. Jorge, 1994. "Shared ATM networks and banking competition," European Economic Review, Elsevier, vol. 38(5), pages 1113-1138, May.
- James J. McAndrews, 1991. "The evolution of shared ATM networks," Business Review, Federal Reserve Bank of Philadelphia, issue May, pages 3-16.
- Paul S. Calem & Leonard I. Nakamura, 1995.
"Branch banking and the geography of bank pricing,"
Finance and Economics Discussion Series
95-25, Board of Governors of the Federal Reserve System (U.S.).
- Garth Saloner & Andrea Shepard, 1995. "Adoption of Technologies with Network Effects: An Empirical Examination of the Adoption of Teller Machines," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 479-501, Autumn.
- E. J. Working, 1927. "What Do Statistical "Demand Curves" Show?," The Quarterly Journal of Economics, Oxford University Press, vol. 41(2), pages 212-235.
- William J. Baumol, 1952. "The Transactions Demand for Cash: An Inventory Theoretic Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 66(4), pages 545-556.
- Calcagnini,G. & Bonis,R. de & Hester,D.D., 1999. "Determinants of bank branche expension in Italy," Working papers 32, Wisconsin Madison - Social Systems.
When requesting a correction, please mention this item's handle: RePEc:att:wimass:199927. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ailsenne Sumwalt)
If references are entirely missing, you can add them using this form.