Spillover_Boone_12329_Revised_Submit_Revised_150.pdf (462.61 kB)
The effect of monetary policy on bank competition using the Boone index
journal contribution
posted on 2019-10-17, 15:27 authored by Anthony Glass, Karligash GlassKarligash Glass, Tom Weyman-JonesAn interesting strand of the theoretical literature on measuring competition posits that when competition increases in an industry, output is reallocated to more efficient firms. Our first contribution is on the methodology for the empirical implementation of this theoretical test of a change in competition. This contribution moves from the relationship between a change in competition and a single all-encompassing efficiency, to a set of relationships between a change in competition and multiple efficiencies that measure different components of economic performance. Our second contribution is to apply our empirical methodology to large U.S. banks. The results suggest that competition intensified between these banks during the financial crisis and beyond (2008 - 15), vis-à-vis our pre-crisis period (1994 - 07). This points to an increase in competition that has exogenous origins such as the decrease in the loan-deposit rate spread, which represented the collateral damage to banks from monetary policy to moderate the Great Recession.
History
School
- Business and Economics
Department
- Economics
Published in
European Journal of Operational ResearchVolume
282Issue
3Pages
1070-1087Publisher
ElsevierVersion
- AM (Accepted Manuscript)
Rights holder
© ElsevierPublisher statement
This paper was accepted for publication in the journal European Journal of Operational Research and the definitive published version is available at https://doi.org/10.1016/j.ejor.2019.10.022.Acceptance date
2019-10-07Publication date
2019-11-05Copyright date
2020ISSN
0377-2217Publisher version
Language
- en
Depositor
Dr Karligash Glass. Deposit date: 16 October 2019Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC