Working Papers

Mobile payments and interoperability: Insights from the academic literature 
Joint with Milo Bianchi, Matthieu Bouvard, Renato Gomes and Andrew Rhodes
Accepted, Information Economics and Policy
TSE Working Paper (2022), BIS Working Paper (2023)

Big Techs in Finance
Joint with Sebastian Doerr, Jon Frost and Leonardo Gambacorta
Forthcoming in the Oxford Handbook of Banking
BIS Working Paper (2023)

Adoption of digital technologies: The case of smartphones in India* 

Presentations: 2nd UK Digital Economy Network (Cambridge), EEA (Barcelona), IBEO (Sardinia), Asian Meeting of the Econometric Society (Mumbai), CESifo (Munich), Indian School of Business (Hyderabad), Centre for Competition Policy (Nottingham), Bank for International Settlements (Basel), Uber (San Francisco), Ofcom (London), Indian Institute of Management (Ahmedabad), Analysis Group (Paris), Positive Competition (Brussels), Ashoka University (New Delhi), NBER Economics of Digitisation, EBE Summer meeting (Munich), ICDE (Bourdeaux), Doctoral workshop on Economics of Digitisation (Toulouse), EUDN PhD Seminar (Wageningen), EARIE (Bergen), University of Warwick (Warwick), ICRIER Half-Baked Seminar (New Delhi). 

Abstract: Smartphones have become the primary device through which people in developing countries can access the benefits of widespread digitalisation. However, most mobile phone users in developing countries continue to use low-quality feature phones. This paper develops a structural model of consumer demand and supply to understand the main drivers of smartphone adoption. It then uses the estimates of the model to investigate how to best design pro-adoption policies. I find that gains in device quality, changes in income distribution and expansion of network coverage are the main factors behind the growth of smartphone sales in India. Given the central role of income in driving adoption, I simulate the impact of targeted subsidies for smartphones. I find that, compared to ad valorem tax reductions and uniform subsidies, targeted subsidies are the least costly for the government and are the most effective for redistribution, being (almost) fully appropriated by consumers.

*Previously circulated as "Explaining Smartphone Adoption in India"

Short Term Cost of Cash and Mobile Financial Services : Evidence from a natural experiment in India

Joint with Helia Costa and Mauro Pisu

Presentations: CESifo (Munich), Economics of FinTech (Edinburgh), OECD brown bag seminar (Paris), Economics of Payments XII (Fed Board, Washington DC)

Abstract: The use of digital financial services (DFS) in developing countries can be a tool for financial inclusion, curbing tax evasion, and the efficient delivery of public services. Using a unique event -- an un-announced and large scale demonetization process that took place in 2016 that increased the short-term costs of holding and transacting in cash -- we study the uptake of a specific form of DFS, namely electronic payment platforms, in India. We find that in states where the labour market is less formal, and so where workers are more likely to be affected by the demonetisation process, this shock led to an increase in the use of platforms larger than that of states where the labour market is more formal. The effect of this "forced experimentation" was, however, short lived. At the individual level, people who are more exposed to the shock are more likely to adopt digital payments and this effect persists over the next two years. Strikingly, women drive the persistence of this effect and not men. Our results contribute to understanding user behaviour and persistence of habits, with important implications for the design of policies aimed at increasing the uptake of platforms.

Imitation of product characteristics in the mobile handset market

Presentations: ZEW Conference on ICT (Mannheim)

Abstract: This paper seeks to understand the value of an easily imitable technology in an emerging market context. We study the introduction of dual SIM handsets in the Indian mobile phone market and quantify the value of this technology for consumers. We also quantify the impact on market outcomes of the quick imitation of this technology by competing firms. We find that the introduction of dual SIM handsets led to an increase in the consumer surplus of 3.1% to 8.9%, and an expansion in the total size of the market by 1.8% to 3.3%. We also find that while imitation reduced the innovator’s profit substantially, it also made the technology much more affordable. In the absence of imitation, consumer prices would have been 22% higher. Finally, we provide a lower-bound on the innovator’s cost of protecting intellectual property in an emerging market. We find this lower bound to be as high as 12% of the innovator’s observed profits ($ 29.5 million).

Work in Progress

Fast and furious: the rise of fast payment systems
  (joint with Jon Frost, Anneke Kose and Priscilla Koo Wilkens) 

Bank branch closures and the bank-firm relationship
(joint with Maddalena Galardo, Leonardo Gambacorta and Paolo Mistrulli)