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Deregulation and Productivity: The Case of Spanish Banks Author info | Abstract | Publisher info | Download info | Related research | Statistics Subal C. Kumbhakar () (State University of New York )
Ana Lozano-Vivas () (Universidad de Málaga )
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This paper deals with measuring total factor productivity (TFP) growth of financial institutions incorporating different types of deregulatory measures. TFP growth is decomposed into external, scale, and markup (in output prices) components. The contribution of the external component is further dissected into several types of deregulation and technical change components. We include the TFP growth relationship as an additional equation in estimating the cost system. The empirical model uses panel data on Spanish banks (savings and commercial), primarily because the Spanish banking sector went through rapid deregulatory changes. We find that deregulations, in general, contributed positively to TFP growth for both savings and commercial banks. Furthermore, domestic (European) deregulations had a greater effect on TFP growth of savings (commercial) banks.
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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number
E2004/24.
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Length: 19 pages
Date of creation: 2004Date of revision:
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Keywords: Total factor productivity ; markup ; deregulation ; and technical change. ; Other versions of this item:
Find related papers by JEL classification: D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity D40 - Microeconomics - - Market Structure and Pricing - - - General G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
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