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The Determinants of Technology Diffusion: Evidence from the UK Financial Sector
Author(s) -
Gourlay Adrian,
Pentecost Eric
Publication year - 2002
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00291
Subject(s) - profitability index , economics , panel data , econometrics , stock (firearms) , diffusion , empirical evidence , financial economics , industrial organization , monetary economics , finance , engineering , mechanical engineering , physics , thermodynamics , philosophy , epistemology
We investigate the role of firm‐ and industry‐specific factors in the diffusion of automated teller machines in the UK financial sector. A duration model of technology adoption is employed in the empirical modelling and is applied to an annual panel of adoption histories over the period 1972–97. The main factors affecting the diffusion of new technology are found to be endogenous learning, cumulative learning‐by‐doing effects, firm size, growth and profitability, and price expectations. There is little evidence, however, to support the role of stock effects in the diffusion process. The results are found to be robust across a number of specifications of the baseline hazard function.