Market Structure and the Banking Sector
AbstractWe propose a simple framework to explore how different market structures in the banking system affect credit allocation, and how deposits and number of entrepreneurs affect the equilibrium number of banks in the economy. We find that within the Marshallian aggregate surplus perspective, the number of entrants in the banking system is always larger than the socially optimal number of banks.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 4 (2007)
Issue (Month): 24 ()
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Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- G2 - Financial Economics - - Financial Institutions and Services
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