Diffusion of mobile phones in Portugal: unexpected success?

This paper begins with a somewhat paradoxical situation: Portugal is one of the less innovative countries within the European Union by most innovation indicators but, simultaneously, it is a leading country in the diffusion of mobile phones. The remarkable evolution of the mobile telecommunications sector over the last 15 years turns the issue a little more intriguing. This paper addresses the diffusion of mobile phones in Portugal and focuses particularly on the take-off stage, which signalled a sudden change in the pattern of diffusion. The introduction of an innovation – prepaid cards – explains most of the change in the diffusion curve occurred around 1996 and the subsequent increase in the penetration rate. Prior known research has not considered pre-paid cards an important determinant of mobile phone diffusion, but pre-paid services had an enormous impact on the rate of adoption of mobile phones in many countries and it is the major take-off determinant of mobile phone diffusion in Portugal. The time lag between the launching of this innovation in Portugal and its adoption by other EU countries explains why Portugal not just caught up with the EU average mobile phone penetration rate around 1996, but moved ahead of it from then on

Brazil's Financial System: Resilience to Shocks, no Currency Substitution, but Struggling to Promote Growth

Brazil has evolved a financial system with a smaller presence of public banks and larger participation of foreign banks, less directed credit, and well capitalized banks. Over the years it has been resilient to shocks and was able to preserve the real value of savings in the system, thus avoiding both dollarization and desintermediation. However, reducing the cost and increasing the volume of credit in the economy remains a challenge. Notwithstanding these hurdles, recent advances in the regulation of the financial system should pave the way for better intermediation and higher growth.

Financial Services Innovation: Opportunities for Transformation Through Facial Recognition and Digital Wallet Patents

Bringing innovation to the marketplace for new products and services involves creativity, a culture in which change flourishes, and leadership that thrives on transformation and complexity. This study explored the potential for market disruption or change based on innovations involving patents granted to nonfinancial services organizations that could affect financial services, specifically consumer or retail bank products. It involved analyzing documents related to recently granted patents and completing a mixed methods survey integrating the Delphi research technique. This method required multiple iterations of a survey presented to expert panelists or industry thought leaders to attempt to gain consensus ( Consensus , 2011) or general agreement by the group (Tersine & Riggs, 1976). With this research method, the goal is to gain an understanding of initial individual perspectives. Through an iterative process, then determine if, as a group, they can move toward a common vision of what is likely to happen after viewing other\u27s perspectives. This research was specific to two innovations for which patents have been granted: facial recognition and digital wallets. Patents can provide insights into potential new developments planned by organizations. In some cases, patents can provide insights into innovation, potential threats, opportunities, or disruptions that could change the way a market operates. The goal of this research was to select two recent patents from many that have been granted, develop theoretical insights, and, through a mixed methods survey integrating the Delphi methodology, identify when or if these patents could have an impact on financial services. This research brought together thought leaders in an anonymous, collaborative approach to assess considerations and provide their perspective on these changes. This study served to help leaders drive innovation in financial services organizations and to understand how others perceive these innovations. The electronic version of this Dissertation is at OhioLink ETD Center, www.etd.ohiolink.ed

Financial Services Innovation: Opportunities for Transformation Through Facial Recognition and Digital Wallet Patents

Bringing innovation to the marketplace for new products and services involves creativity, a culture in which change flourishes, and leadership that thrives on transformation and complexity. This study explored the potential for market disruption or change based on innovations involving patents granted to nonfinancial services organizations that could affect financial services, specifically consumer or retail bank products. It involved analyzing documents related to recently granted patents and completing a mixed methods survey integrating the Delphi research technique. This method required multiple iterations of a survey presented to expert panelists or industry thought leaders to attempt to gain consensus ( Consensus , 2011) or general agreement by the group (Tersine & Riggs, 1976). With this research method, the goal is to gain an understanding of initial individual perspectives. Through an iterative process, then determine if, as a group, they can move toward a common vision of what is likely to happen after viewing other\u27s perspectives. This research was specific to two innovations for which patents have been granted: facial recognition and digital wallets. Patents can provide insights into potential new developments planned by organizations. In some cases, patents can provide insights into innovation, potential threats, opportunities, or disruptions that could change the way a market operates. The goal of this research was to select two recent patents from many that have been granted, develop theoretical insights, and, through a mixed methods survey integrating the Delphi methodology, identify when or if these patents could have an impact on financial services. This research brought together thought leaders in an anonymous, collaborative approach to assess considerations and provide their perspective on these changes. This study served to help leaders drive innovation in financial services organizations and to understand how others perceive these innovations. The electronic version of this Dissertation is at OhioLink ETD Center, www.etd.ohiolink.ed

Greco-Roman lessons for public debt management and debt market development

Greece and Italy initiated efforts to improve public debt management and develop their domestic debt markets respectively in the late 1970s and mid-1980s. At that time, both countries suffered from large and rapidly growing public debt, excessive reliance on short-term bills held by commercial banks, a strong preference of households to save in bank deposits, and a weak presence of institutional investors (pension funds, insurance companies, and mutual funds). Continuing large fiscal deficits, high levels of interest rates and inflation, and serious policy credibility problems impeded the use of long-term instruments. The authors provide a detailed analysis of the characteristics of the instruments that were used in these two countries, their pace of issuance, and their impact on the composition of public debt. The authors note that the main Greco-Roman lesson for developing and transition countries concerns the transition from an excessive reliance on short-term Treasury bills, held by captive banks, to a liquid market with long-term instruments held, and actively traded, by long-term institutional investors. The transition required moving gradually to medium-term instruments, experimenting with innovation, and targeting households and foreign investors, while taking steps to establish policy credibility by lowering fiscal deficits and inflation. When reliance on captive sources of finance was substantially reduced and policy credibility was established, both countries focused on developing active money markets and liquid secondary markets with benchmark issues of fixed-rate long-term securities. They ultimately succeeded in developing active professional markets, using modern practices, targeting well-established European institutional investors, and integrating into the highly sophisticated euro markets. However, integration into the euro markets was the culmination of a prolonged effort of modernization and adaptation and was greatly facilitated by their strong political commitment to achieve economic convergence and join the euro zone.Public Sector Economics&Finance,Strategic Debt Management,Banks&Banking Reform,Payment Systems&Infrastructure,Economic Theory&Research,Strategic Debt Management,Public Sector Economics&Finance,Banks&Banking Reform,Environmental Economics&Policies,Economic Theory&Research

Institutional Clash and Financial Fragility. An Evolutionary Model of Banking Crises

There are mainly two types of theories explaining banking crisis, emanating from the monetarist school respectively institutional economics. Using an allegory, monetarists are discussing how much water in terms of liquidity that is needed to stop a fire escalating into a disaster, while institutionalists are occupied with the causes of the fire. Our study rejects the explanatory value of the monetarist view, but also criticizes the Kindleberger-Minsky model for not taking the legalisation and the sanctions in the hands of the authorities into account. We consider the institutional factor as a decisive part in the understanding of systemic risk and the process towards increasing debt in non-financial sectors and introduce the concept institutional clash. Not every recession has caused a banking crisis. But all banking crises have been preceded by an institutional clash. Consequently, an institutional clash is a prerequisite but not sufficient to cause a banking crisis: there must be a recession for a crisis to emerge. We also launch a stage-model for the evolution of banking crises. The stages in that model highlight decisive factors before, under and after a crisis. Our model has the capability to explain the occurrence of crises in a re-regulated economy. However, we only give few examples from Nordic banking crises how our model could be applied. Thus, the article is explorative. It is natural to make further empirical observation in order get a solid theory of driving forces behind banking crisis. The next step would be to empirically integrate all the Nordic banking crises between 1850 and 2000 in our analysis.Banking history, banking crisis, finance, institutional theory, Denmark, Finland, Norway, Sweden, Scandinavia

Size, Structure, and Strategies: Insolvency and "The Nature of the Firm" in Italy, 1920S-1970S

During the Twentieth century, Italian joint-stock companies remained relatively small and tended to die young. This fact constrained the development of the full potential of the Italian industry, as small-dimensioned companies struggled to implement the most efficient technologies and managerial techniques. This paper analyses this problem by looking at the functioning of insolvency procedures. Using quantitative and qualitative evidence, we show how various devices that progressively appeared on the scene failed in providing efficient solutions to re-start worthy companies. Insolvency procedures thus remained liquidation-prone, a factor that contributes to explain the peculiarity and the limits of Italian industrial capitalism.