Close bank relationships are thought to ameliorate firms' liquidity constraints--a phenomenon frequently measured by liquidity sensitivity of investment. Using a panel of German firms during the formative years of universal banking (1903-1913), this paper shows that, even controlling for...

Close bank relationships are thought to ameliorate firms' liquidity constraints--a phenomenon frequently measured by liquidity sensitivity of investment. Using a panel of German firms during the formative years of universal banking 1903-1913), this paper shows that, even controlling for...

Using structural price markup models and Rosse-Panzar tests, this paper demonstrates little deviation from competitive behavior, taken as a weighted average of all U.S. commercial banking markets. The results suggest Bertrand competition or contestability in banking and indicate that banking...