On the effect of Cournot and Stackelberg competition in the banking sector on the investment cycle
Eleni Dalla
Discussion Paper Series from Department of Economics, University of Macedonia
Abstract:
Following the industrial organization approach to banking, we investigate the effects of banking conduct on the investment cycle. To achieve this, we extend the second order accelerator (SOA) model in discrete time, introducing the interest rate on loans. To the extent that the banking sector is concerned, we consider two different types of banking conduct: a Cournot game where the banks make their decision on the quantities of loans and deposits simultaneously, and a Stackelberg game in which they decide over these amounts sequentially. In addition, we follow a simulation process to confirm the dynamic properties of our theoretical findings and examine the effects of monetary policy on capital over time..
Keywords: Cournot game; Stackelberg game; investment cycle; second order accelerator; monetary policy. (search for similar items in EconPapers)
JEL-codes: D92 E32 E52 G21 L13 (search for similar items in EconPapers)
Date: 2017-12, Revised 2017-12
New Economics Papers: this item is included in nep-ban, nep-com and nep-mac
References: Add references at CitEc
Citations:
Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/dp022017.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aphrodite.uom.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)
Related works:
Journal Article: On the effect of Cournot and Stackelberg competition in the banking sector on the investment cycle (2018) 
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:mcd:mcddps:2017_02
Access Statistics for this paper
More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Bibliographic data for series maintained by Theodore Panagiotidis () and Anastasia Litina ().