Glass, A.J. orcid.org/0000-0002-5984-7666, Kenjegalieva, K. and Weyman-Jones, T. (2020) The effect of monetary policy on bank competition using the Boone index. European Journal of Operational Research, 282 (3). pp. 1070-1087. ISSN 0377-2217
Abstract
An 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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Published by Elsevier B.V. This is an author produced version of a paper subsequently published in European Journal of Operational Research. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Productivity and competitiveness; Competitive regimes; Network efficiency; Large U.S. banks; Exogenous change in competition |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 23 Apr 2020 09:54 |
Last Modified: | 05 Nov 2021 01:38 |
Status: | Published |
Publisher: | Elsevier BV |
Refereed: | Yes |
Identification Number: | 10.1016/j.ejor.2019.10.022 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:159785 |
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