Market Power Evolution of Financial Intermediation Services in Argentina: Effects of Favorable Macroeconomic Perspectives?

Karina Otero
Additional contact information
Karina Otero: Central Bank of Argentina

No 200831, BCRA Working Paper Series from Central Bank of Argentina, Economic Research Department

Abstract: The low depth of the argentinian financial system has motivated doubts about its potentials of development, even under relatively favorable macroeconomic expectations. Contributing to the analysis of this key industry, the current paper develops a methodology to measure the evolution of the financial system’s market power. The structural model follows the guidelines of the “New Empirical Industrial Organization” (NEIO) and the “discrete choice” literature. Additionally, several modifications were incorporated to get a more accurate analysis of the local industry. Among the obtained results, some evidence was found supporting the presence of market power in the financial intermediation industry. Nevertheless, some signs of certain increase in the competition level were found. This paper attempts to provide new elements to applied literature on the local financial market. The proposed framework models the industry production, taking into account the duality of the financial intermediation business.

Keywords: Argentina; bank competition; bank services; demand; financial entities; financial services; market power (search for similar items in EconPapers)
JEL-codes: C33 C8 G21 L11 L13 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2008-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.bcra.gov.ar/pdfs/investigaciones/WP%202008%2031.pdf Spanish version (versión en Español) (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.bcra.gob.ar:443 (certificate verify failed) (http://www.bcra.gov.ar/pdfs/investigaciones/WP%202008%2031.pdf [301 Moved Permanently]--> https://www.bcra.gob.ar/pdfs/investigaciones/WP%202008%2031.pdf)

Related works:
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:bcr:wpaper:200831

Access Statistics for this paper

More papers in BCRA Working Paper Series from Central Bank of Argentina, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Federico Grillo (fgrillo@bcra.gob.ar).