Front Matter Page
Research Department
Contents
I. Introduction
II. Industry Background
III. Theory
A. Intuition
B. Model Basics
C. Emergence of ATM Networks
D. Twin Shocks: Debit Innovation and Banking Deregulation
E. Industry Dynamics: Characterization
IV. Model Calibration
A. Parameterization
B. Parameter Values and Model Fit
V. Counterfactual Analysis
A. No Debit Innovation
B. No Deregulation
VI. Additional Discussions
A. Anticipated Shocks
B. Firm Heterogeneity
VII. Concluding Remarks
Appendix A: Timeline of the Industry Evolution
Appendix B: Model Solution
Appendix C: Anticipated Shocks
References
Figures
Figure 1. Shared ATM Networks and Transactions
Figure 2. Debit and Banking Development
Figure 3. Evolution of Network Numbers
Figure 4. Industry Facts
Figure 5. Model fit – Baseline Calibration
Figure 6. Model Fit – Baseline Calibration (continued)
Figure 7. Counterfactual – No Innovation
Figure 8. Counterfactual – No Deregulation (Scenario 1)
Figure 9. counterfactual – No Deregulation (Scenario 2)
Figure 10. Network Size and Performance
Table
Table 1. Parameter Values for Model Calibration