Measuring competition in banking: A critical review of methods

Florian Leon

No 201412, Working Papers from CERDI

Abstract: Many studies have attempted to investigate the determinants and implications of competition in the banking industry. The literature on the measurement of competition can be divided between the structural and non-structural approaches. The structural approach infers the degree of competition from the structure of the market. The non-structural approach, based on the New Empirical Industrial Organization, assesses the degree of competition directly by observing behavior of firms in the market. This paper reviews the most frequently-used structural and non structural measures of competition in banking. It highlights their strengths and weaknesses, especially for studies based on a limited number of observations.

Keywords: Competition; Bank; HHI; Lerner index; Conjectural variation model; Panzar-Rosse model; Boone indicator (search for similar items in EconPapers)
JEL-codes: D4 G21 L11 L13 O55 (search for similar items in EconPapers)
Pages: 44
Date: 2014-06
New Economics Papers: this item is included in nep-com, nep-cse, nep-hme and nep-ind
References: Add references at CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://publi.cerdi.org/ed/2014/2014.12.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://publi.cerdi.org/ed/2014/2014.12.pdf [301 Moved Permanently]--> https://publi.cerdi.org/ed/2014/2014.12.pdf)

Related works:
Working Paper: Measuring competition in banking: A critical review of methods (2015)
Working Paper: Measuring competition in banking: A critical review of methods (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdi:wpaper:1577

Access Statistics for this paper

More papers in Working Papers from CERDI Contact information at EDIRC.
Bibliographic data for series maintained by Vincent Mazenod ().