This paper implements an empirical test of market power for Brazilian banking based on Bresnahan (1982) and Lau (1982). A dynamic version of the test is applied. The results show that the banking industry in Brazil is highly competitive, although the perfect competition hypothesis is rejected. The hypothesis that Brazilian banks behave like a cartel arrangement is also rejected.
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Paper provided by Central Bank of Brazil, Research Department in its series Working Papers Series with number
12.
Length: Date of creation: Mar 2001 Date of revision: Publication status: Published in Estudos Econômicos, Vol. 32, no. 2, (Apr-Jun 2002): 203-224. Handle: RePEc:bcb:wpaper:12
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