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Geographical Deregulation and Competition in U.S. Banking Markets

Asghar Zardkoohi and Donald R Fraser

The Financial Review, 1998, vol. 33, issue 2, 85-98

Abstract: The effects of geographical deregulation on competition in banking markets is examined. Using a model that develops an index of competition as proposed by Bresnahan and applied to banking markets by Shaffer, the empirical evidence suggests that geographical deregulation has not had a significant impact on competition. The limited effects of geographical deregulation on competition is consistent with other evidence presented, suggesting that banking markets were already highly competitive. In those states where a significant effect was observed, geographical deregulation increased the degree of competition in some states but bad the opposite effect in others. Copyright 1998 by MIT Press.

Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:bla:finrev:v:33:y:1998:i:2:p:85-98

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The Financial Review is currently edited by Cynthia J. Campbell and Arnold R. Cowan

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