The joint estimation of bank-level market power and efficiency

Journal of Banking and Finance

Volumn 33, Issue 10, 2009, Pages 1842-1850

  Delis, Manthos D ^a   Tsionas, Efthymios G ^b  

^a UNIVERSITY OF IOANNINA   (Greece)

^b ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS   (Greece)

Author keywords

Efficiency; Local maximum likelihood; Market power

Indexed keywords

EID: 70350042046     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2009.04.006     Document Type: Article

References (35)

1. Angelini P., and Ceorelli N. The effects of regulatory reform on competition in the banking industry. Journal of Money, Credit, and Banking 35 (2003) 663-684
2. Barth J.R., Caprio Jr. G., and Levine R. The regulation and supervision of bank around the world: A new database. In: Litan R.E., and Herring R. (Eds). Integrating Emerging Market Countries into the Global Financial System (2001), Brookings Institution Press, Washington 183-240
3. Battese G.E., and Coelli T.J. A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20 (1995) 325-332
4. Beck T., Demirguc-Kunt A., and Levine R. A new database on financial development and structure. World Bank Economic Review 14 (2000) 597-605
5. Berg S.A., and Kim M. Banks as multioutput oligopolies: An empirical evaluation of the retail and corporate banking markets. Journal of Money, Credit, and Banking 30 (1998) 135-153
6. Berger A.N., and Hannan T.H. The efficiency cost of market power in the banking industry: A test of the "quiet life" and related hypotheses. Review of Economics and Statistics 80 (1998) 454-465
7. Berger A.N., and Humphrey D.B. Efficiency of financial institutions: International survey and directions for future research. European Journal of Operational Research 98 (1997) 175-212
8. Bikker J., and Haaf K. Competition, concentration and their relationship: an empirical analysis of the banking industry. Journal of Banking and Finance 26 (2002) 2191-2214
9. Bresnahan T. Empirical studies of industries with market power. In: Schmalensee R., and Willig R. (Eds). Handbook of Industrial Organization vol. 1 (1989), North-Holland, Amsterdam 1011-1057
10. Brissimis S.N., Delis M.D., and Papanikolaou N.I. Exploring the nexus between banking sector reform and performance: evidence from OECD countries. Journal of Banking and Finance 32 (2008) 2674-2683
11. Carbo-Valverde S., Humphrey D.B., and Lopez del Paso R. Do cross-country differences in bank efficiency support a policy of "national champions?". Journal of Banking and Finance 31 (2007) 2173-2188
12. Carbo-Valverde S., Humphrey D.B., Maudos J., and Molyneux P. Cross-country comparisons of competition and pricing power in European banking. Journal of International Money and Finance 28 (2009) 115-134
13. Coelli T., Rao D.S.P., O'Donnell C.C., and Battese G.E. An Introduction to Efficiency and Productivity Analysis (2005), Springer, New York
14. Corts K. Conduct parameters and the measurement of market power. Journal of Econometrics 88 (1999) 227-250
15. Delis M.D., Staikouras C.K., and Varlagas P.T. On the measurement of market power in the banking industry. Journal of Business Finance and Accounting 35 (2008) 1023-1047
16. Demsetz H. Industry structure, market rivalry, and public policy. Journal of Law and Economics 16 (1973) 1-9
17. Dietsch M., and Lozano-Vivas A. How the environment determines the efficiency of banks: a comparison between French and Spanish banking industry. Journal of Banking and Finance 24 (2000) 985-1004
18. European Central Bank [ECB], 2007. EU Banking Structures. ECB, Frankfurt.
19. Genesove D., and Mullin W.P. Testing static oligopoly models: conduct and cost in the sugar industry, 1890-1914. Rand Journal of Economics 29 (1998) 355-377
20. Hughes, J.P., Mester, L.J., 2008. Efficiency in banking: Theory, practice, and evidence. Federal Reserve Bank of Philadelphia Working Paper No. 08-1.
21. Koetter M., and Poghosyan T. The identification of technology regimes in banking: Implications for the market power-fragility nexus. Journal of Banking and Finance. 33 (2009) 1413-1422
22. Konings J., Van Cayseele P., and Warzynski F. The effects of privatization and competitive pressure on firms' price-cost margins: micro evidence from emerging economies. Review of Economics and Statistics 87 (2005) 124-134
23. Koutsomanoli-Filippaki A., Margaritis D., and Staikouras C. Efficiency and productivity growth in the banking industry of Central and Eastern Europe. Journal of Banking and Finance 33 (2009) 557-567
24. Kumbhakar S.C., and Lovell C.A.K. Stochastic Frontier Analysis (2000), Cambridge University Press, Cambridge
25. Kumbhakar S.C., and Tsionas E.G. Scale and efficiency measurement using a semiparametric stochastic frontier model: evidence from the US commercial banks. Empirical Economics 34 (2007) 585-602
26. Kumbhakar S.C., Park B.U., Simar L., and Tsionas E.G. Nonparametric stochastic frontiers: a local maximum likelihood approach. Journal of Econometrics 137 (2007) 1-27
27. Lensink R., Meesters A., and Naaborg I. Bank efficiency and foreign ownership: do good institutions matter?. Journal of Banking and Finance 32 (2008) 834-844
28. Lewbel A. A local generalized method of moments estimator. Economics Letters 94 (2007) 124-128
29. Maudos J., and Fernandez de Guevara J. The cost of market power in banking: social welfare loss vs. cost efficiency. Journal of Banking and Finance 31 (2007) 2103-2125
30. Northcott, C.A., 2004. Competition in banking: A review of the literature. Bank of Canada Working Paper No. 2004-24.
31. Ruppert D., Sheather S.J., and Wand M.P. An effective bandwidth selector for local least squares regression. Journal of the American Statistical Association 90 (1995) 1257-1270
32. Shaffer S. The competitive impact of disclosure requirements in the credit card industry. Journal of Regulatory Economics 15 (1999) 183-198
33. Tibshirani R., and Hastie T. Local likelihood estimation. Journal of the American Statistical Association 82 (1987) 559-567
34. Tran, K.C., Tsionas, E.G., forthcoming. Local GMM estimation of semiparametric dynamic panel data with smooth coefficient models. Econometric Reviews.
35. Uchida H., and Tsutsui Y. Has competition in the Japanese banking sector improved?. Journal of Banking and Finance 29 (2005) 419-439