Goddard, John; Wilson, John O.S. - Istituto Einaudi per l'Economia e la Finanza (EIEF) - 2008
The "Rosse-Panzar" revenue test for competitive conditions in banking is based on observation of the impact on bank revenue of variation in factor input prices. We identify the implications for the H-statistics of misspecification bias in the revenue equation arising when adjustment towards...