Geographical spillovers on the relation between risk-taking and market power in the US banking sector
Gabriel Pino Saldías,
Rodrigo Herrera () and
The North American Journal of Economics and Finance, 2019, vol. 47, issue C, 351-364
This paper investigates the relation between risk taking and market power in the US banking sector by introducing the effect of geographical spillovers caused by the transmission of risk taking among banks. For this purpose, we use spatial econometrics. Our results support a negative relation between risk taking and market power. The transmission of risk taking causes significant geographical spillovers, which increases the magnitude of the relation under analysis here. Moreover, the spillover effect is found to be stronger during the Subprime-crisis period when we noted an increased in the transmission of risk taking of banks.
Keywords: Transmission; Risk taking; Market power; Spatial autoregressive model (search for similar items in EconPapers)
JEL-codes: G21 G32 E44 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:47:y:2019:i:c:p:351-364
Access Statistics for this article
The North American Journal of Economics and Finance is currently edited by Hamid Beladi
More articles in The North American Journal of Economics and Finance from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().