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Most bank efficiency studies that use stochastic frontier analysis (SFA) employ each bank’s own implicit input price when estimating efficient frontiers. But the theoretical foundation of most studies is a cost minimisation and/ or profit maximisation problem assuming perfect input markets. At...
Persistent link: https://www.econbiz.de/10002739985
Modern trade theory emphasizes firm-level productivity differentials to explain the cross-border activities of non-financial firms. This study tests whether a productivity pecking order also determines international banking activities. Using a novel dataset that contains all German banks'...
Persistent link: https://www.econbiz.de/10003923511
Recent developments on international financial markets have called the benefits of bank globalization into question. Large, internationally active banks have acquired substantial market power, and international activities have not necessarily made banks less risky. Yet, surprisingly little is...
Persistent link: https://www.econbiz.de/10008667402
Modern trade theory emphasizes firm-level productivity differentials to explain the cross-border activities of non-financial firms. This study tests whether a productivity pecking order also determines international banking activities. Using a novel dataset that contains all German banks’...
Persistent link: https://www.econbiz.de/10003889133
Persistent link: https://www.econbiz.de/10009239658
Persistent link: https://www.econbiz.de/10009776232
We test how bank market power influences technical change and resource allocation of informationally opaque firms. We use a dataset with approximately 700,000 firm-year observations of German small and medium-sized enterprises (SME) to identify the effect of bank market power using the...
Persistent link: https://www.econbiz.de/10009660031
Persistent link: https://www.econbiz.de/10008934430
Persistent link: https://www.econbiz.de/10009161544
To test if safety nets create moral hazard in the banking industry, we develop a simultaneous structural two-equations model that specifies the probability of a bailout and banks’ risk taking.We identify the effect of expected bailout probabilities on risk taking using exclusion restrictions...
Persistent link: https://www.econbiz.de/10009270009