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A Test of Competition in Brazilian Banking

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Author Info
Márcio I. Nakane
Abstract

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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File URL: http://www.bcb.gov.br/pec/wps/ingl/wps12.pdf
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Publisher Info
Paper provided by Central Bank of Brazil, Research Department in its series Working Papers Series with number 12.

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Date of creation: Mar 2001
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Publication status: Published in Estudos Econômicos, Vol. 32, no. 2, (Apr-Jun 2002): 203-224.
Handle: RePEc:bcb:wpaper:12

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Web page: http://www.bcb.gov.br/?english

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  1. Tarsila Segalla Afanasieff & Priscilla Maria Villa Lhacer & Márcio Issao Nakane, 2001. "The Determinants of Bank Interest Spread in Brazil," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 051, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  2. Eduardo Levy Yeyati & Alejandro Micco, 2003. "Concentración y penetración foránea en los sectores bancarios latinoamericanos: repercusiones sobre la competencia y el riesgo," RES Working Papers 4354, Inter-American Development Bank, Research Department. [Downloadable!]
  3. Eduardo Levy Yeyati & Alejandro Micco, 2003. "Concentration and Foreign Penetration in Latin American Banking Sectors: Impact on Competition and Risk," Business School Working Papers cinco, Universidad Torcuato Di Tella. [Downloadable!]
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This page was last updated on 2009-12-22.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.