Has Competition in the Japanese Banking Sector Improved?
This paper investigates whether competition in the Japanese banking sector has improved in the last quarter of the 20th century. By estimating the first order condition of profit maximization, together with the cost function and the inverse demand function, we found that competition had improved, especially in the 1970s and in the first half of the 1980s. The results fail to reject a Cournot oligopoly for city banks for most of the period, while they do reject it for regional banks for the overall period. This suggests that competition among city banks was stronger than that among regional banks.
|Date of creation:||Jun 2002|
|Date of revision:||Sep 2003|
|Contact details of provider:|| Web page: http://www2.econ.osaka-u.ac.jp/library/global/e_HP/e_g_shiryo.html|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shaffer, Sherrill, 1989. "Competition in the U.S. banking industry," Economics Letters, Elsevier, vol. 29(4), pages 321-323.
- Panzar, John C & Rosse, James N, 1987. "Testing for "Monopoly" Equilibrium," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 443-56, June.
- Shaffer, Sherrill & DiSalvo, James, 1994.
"Conduct in a banking duopoly,"
Journal of Banking & Finance,
Elsevier, vol. 18(6), pages 1063-1082, December.
- Sherrill Shaffer, 1990.
"A test of competition in Canadian banking,"
90-18, Federal Reserve Bank of Philadelphia.
- Lau, Lawrence J., 1982. "On identifying the degree of competitiveness from industry price and output data," Economics Letters, Elsevier, vol. 10(1-2), pages 93-99.
- Paolo Angelini & Nicola Cetorelli, 2000.
"Bank Competition and Regulatory Reform: The Case of the Italian Banking Industry,"
Temi di discussione (Economic working papers)
380, Bank of Italy, Economic Research and International Relations Area.
- Angelini, P. & Cetorelli, N., 2000. "Bank Competition and Regulatory Reform: The Case of the Italian Banking Industry," Papers 380, Banca Italia - Servizio di Studi.
- Nicola Cetorelli & Paolo Angelini, 1999. "Bank competition and regulatory reform: the case of the Italian banking industry," Working Paper Series WP-99-32, Federal Reserve Bank of Chicago.
- Bresnahan, Timothy F., 1982. "The oligopoly solution concept is identified," Economics Letters, Elsevier, vol. 10(1-2), pages 87-92.
- Zardkoohi, Asghar & Fraser, Donald R, 1998. "Geographical Deregulation and Competition in U.S. Banking Markets," The Financial Review, Eastern Finance Association, vol. 33(2), pages 85-98, May.
- Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
- Toshiyuki Souma & Yoshiro Tsutsui, 2005. "Recent Competition in the Japanese Life Insurance Industry," ISER Discussion Paper 0637, Institute of Social and Economic Research, Osaka University.
- Clarke, Roger & Davies, Stephen W, 1982. "Market Structure and Price-Cost Margins," Economica, London School of Economics and Political Science, vol. 49(195), pages 277-87, August.
- Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
- De Bandt, Olivier & Davis, E. Philip, 2000. "Competition, contestability and market structure in European banking sectors on the eve of EMU," Journal of Banking & Finance, Elsevier, vol. 24(6), pages 1045-1066, June.
- Molyneux, Philip & Thornton, John & Michael Llyod-Williams, D., 1996. "Competition and market contestability in Japanese commercial banking," Journal of Economics and Business, Elsevier, vol. 48(1), pages 33-45, February.
- Kano, Masaji & Tsutsui, Yoshiro, 2003. "Geographical segmentation in Japanese bank loan markets," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 157-174, March.
When requesting a correction, please mention this item's handle: RePEc:osk:wpaper:0209r. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Atsuko SUZUKI)
If references are entirely missing, you can add them using this form.