Has Competition in the Japanese Banking Sector Improved?

Hirofumi Uchida and Yoshiro Tsutsui (tsutsui@econ.osaka-u.ac.jp)

No 02-09-Rev, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper investigates whether competition in the Japanese banking sector has improved in the last quarter of the 20th century. By estimating the first order condition of profit maximization, together with the cost function and the inverse demand function, we found that competition had improved, especially in the 1970s and in the first half of the 1980s. The results fail to reject a Cournot oligopoly for city banks for most of the period, while they do reject it for regional banks for the overall period. This suggests that competition among city banks was stronger than that among regional banks.

Keywords: Japanese banks; degree of competition; loan market. (search for similar items in EconPapers)
JEL-codes: G21 L13 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2002-06, Revised 2003-09
New Economics Papers: this item is included in nep-com, nep-fin and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Has competition in the Japanese banking sector improved? (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:0209r

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