Another Look at “Bank Competition and Financial Stability: Much Ado about Nothing?”
Kuntal Das () and
W. Reed ()
Working Papers in Economics from University of Canterbury, Department of Economics and Finance
This study replicates Zigraiova and Havranek’s (2016) meta-analysis of banking competition and financial stability. It performs multiple types of replications: a “Reproduction” replication where Z&H’s data and code are verified to reproduce the results of their study; a “Repetition” replication where the studies used by Z&H are independently recoded and then re-analyzed; an “Extension” replication where additional studies on banking competition and stability are analyzed; and a “Robustness Analysis” where we check Z&H’s results using an alternative empirical procedure. Our analysis strongly confirms Z&H’s main finding that competition in the banking sector has an economically negligible effect on financial stability. This result is consistently confirmed across a variety of replication analyses. Most impressively, we confirm their finding even when we analyze a completely independent set of 35 studies not included in Z&H’s meta-analysis. Our results for Z&H’s other findings are less supportive. As the first comprehensive replication of a meta-analysis, this study also provides insights into the robustness of meta-analysis. We find that meta-regression analysis, where estimated effects are related to data, estimation, and study characteristics, is sensitive to how data are coded and to the choice of estimation procedure; and that this sensitivity extends to “best practice” estimates.
Keywords: Bank competition; financial stability; Bayesian model averaging; meta-analysis; publication selection; replication (search for similar items in EconPapers)
JEL-codes: C41 G21 G28 L11 (search for similar items in EconPapers)
Pages: 46 pages
New Economics Papers: this item is included in nep-ban and nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
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:cbt:econwp:19/08
Access Statistics for this paper
More papers in Working Papers in Economics from University of Canterbury, Department of Economics and Finance Private Bag 4800, Christchurch, New Zealand. Contact information at EDIRC.
Bibliographic data for series maintained by Albert Yee ().