On Network Competition and Solow Paradox: Evidence from the U.S. Banks

題名	On Network Competition and Solow Paradox: Evidence from the U.S. Banks
作者	Ho,Shirley J.;MALLICK,SUSHANTA K.
貢獻者	政大經濟系
日期	2008-08
上傳時間	17-Sep-2013 15:54:03 (UTC+8)
摘要	In this paper we develop a model to examine the effect of information technology (IT) in the banking industry. IT can reduce operational cost and create network externality. Empirical studies, however, have shown inconsistency, the so-called Solow paradox, which we explain by stressing the heterogeneity in banking services. In a differentiated model, we characterize the conditions to identify these two effects and explain how the two seemingly positive effects turn negative. Using a panel data set of 68 US banks over 1986–2005, our results show that the proﬁtability effect of IT spending is negative, reﬂecting a negative network competition effect in the banking industry.
關聯	The Manchester School, 76(1), 37-57
資料類型	article
DOI	http://dx.doi.org/10.1111/j.1467-9957.2008.01080.x

dc.contributor	政大經濟系	en_US
dc.creator (作者)	Ho,Shirley J.;MALLICK,SUSHANTA K.	en_US
dc.date (日期)	2008-08	en_US
dc.date.accessioned	17-Sep-2013 15:54:03 (UTC+8)	-
dc.date.available	17-Sep-2013 15:54:03 (UTC+8)	-
dc.date.issued (上傳時間)	17-Sep-2013 15:54:03 (UTC+8)	-
dc.identifier.uri (URI)	http://nccur.lib.nccu.edu.tw/handle/140.119/61079	-
dc.description.abstract (摘要)	In this paper we develop a model to examine the effect of information technology (IT) in the banking industry. IT can reduce operational cost and create network externality. Empirical studies, however, have shown inconsistency, the so-called Solow paradox, which we explain by stressing the heterogeneity in banking services. In a differentiated model, we characterize the conditions to identify these two effects and explain how the two seemingly positive effects turn negative. Using a panel data set of 68 US banks over 1986–2005, our results show that the proﬁtability effect of IT spending is negative, reﬂecting a negative network competition effect in the banking industry.	en_US
dc.format.extent	145578 bytes	-
dc.format.mimetype	application/pdf	-
dc.language.iso	en_US	-
dc.relation (關聯)	The Manchester School, 76(1), 37-57	en_US
dc.title (題名)	On Network Competition and Solow Paradox: Evidence from the U.S. Banks	en_US
dc.type (資料類型)	article	en
dc.identifier.doi (DOI)	10.1111/j.1467-9957.2008.01080.x	en_US
dc.doi.uri (DOI)	http://dx.doi.org/10.1111/j.1467-9957.2008.01080.x	en_US