Coccorese, Paolo and Girardone, Claudia and Shaffer, Sherrill (2021) What affects bank market power in the euro area? A country-level structural model approach. Journal of International Money and Finance, 117 (15). p. 102443. DOI https://doi.org/10.1016/j.jimonfin.2021.102443
Coccorese, Paolo and Girardone, Claudia and Shaffer, Sherrill (2021) What affects bank market power in the euro area? A country-level structural model approach. Journal of International Money and Finance, 117 (15). p. 102443. DOI https://doi.org/10.1016/j.jimonfin.2021.102443
Coccorese, Paolo and Girardone, Claudia and Shaffer, Sherrill (2021) What affects bank market power in the euro area? A country-level structural model approach. Journal of International Money and Finance, 117 (15). p. 102443. DOI https://doi.org/10.1016/j.jimonfin.2021.102443
Abstract
In this study we explore market power in 13 euro area banking sectors for the years 2007 to 2019 by means of a structural model framework with demand and supply equations, where the mark-up of price over marginal cost is parameterized as a measure of banks’ conduct that depends on selected factors. Our evidence indicates that EU banks enjoy a significant degree of market power, which shows a decreasing trend over time and some difference across countries. More competition is associated with higher bank density, lower bank capitalization, more efficient and stable banking systems, better macroeconomic conditions, and the establishment of the SSM. Finally, a clear convergence pattern emerges in the behaviour of EU banks.
Item Type: | Article |
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Additional Information: | Source info: CAMA Working Paper No. 15/2021 |
Uncontrolled Keywords: | Banking; Market power; European integration |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 08 Jun 2021 15:11 |
Last Modified: | 30 Oct 2024 16:48 |
URI: | http://repository.essex.ac.uk/id/eprint/30553 |
Available files
Filename: Coccorese et al JIMF - New revision May21.pdf
Licence: Creative Commons: Attribution-Noncommercial-No Derivative Works 3.0