Delis, Manthos D and Staikouras, Christos and Varlagas, Panagiotis (2008): On the measurement of market power in the banking industry. Published in: Journal of Business Finance and Accounting , Vol. 35, No. 7 (September 2008): pp. 1023-1047.
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This paper compares the estimates of the two most widely used non-structural models for market power measurement in banking, namely the conduct parameter method and the revenue test, as applied to a panel of Greek banks over the period 1993-2004. We also propose a dynamic reformulation of these models within a panel data context, in order to address possible statistical problems associated with the dynamic nature of bank-level data. The results suggest that both static methods provide lower estimates of market power relative to their dynamic counterparts. Therefore, the inclusion of some dynamics in the models, even though it increased estimation complexity, helped to reveal some collusive behavior of banks.
|Item Type:||MPRA Paper|
|Original Title:||On the measurement of market power in the banking industry|
|Keywords:||Market power estimation; Conduct parameter method; Revenue test; Greek banking sector|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General
P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P20 - General
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Manthos Delis|
|Date Deposited:||13. Mar 2009 06:15|
|Last Modified:||11. Feb 2013 22:25|
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