Article citationsMore >>

Sealey, C., and J. Lindley. 1977. “Inputs, Outputs, and the Theory of Production and Cost of Depository Financial Institutions.” Journal of Finance 32: 1251-1266.

has been cited by the following article:

Article

Regional Competition in US Banking – Trends and Determinants

1Department of Business, Economics and Law, University of Bayreuth, Bayreuth, Germany

2University of Magdeburg, Magdeburg, Germany


Journal of Finance and Economics. 2018, Vol. 6 No. 5, 162-172
DOI: 10.12691/jfe-6-5-1
Copyright © 2018 Science and Education Publishing

Cite this paper:
Alexander Erler, Horst Gischer, Bernhard Herz. Regional Competition in US Banking – Trends and Determinants. Journal of Finance and Economics. 2018; 6(5):162-172. doi: 10.12691/jfe-6-5-1.

Correspondence to: Bernhard  Herz, Department of Business, Economics and Law, University of Bayreuth, Bayreuth, Germany. Email: bernhard.herz@uni-bayreuth.de

Abstract

Competition in the US banking industry as measured by the Lerner Index has on average increased substantially during the last decade. At the same time, regional differences in competition on the state level have decreased considerably. Based on a dynamic panel framework we find that these developments are mainly driven by industry specific factors such as the costs to income ratio. The empirical evidence indicates that inefficiency and the Lerner index are significant negatively correlated. Macroeconomic conditions appear to have supported these trends in competition, however, to a somewhat lesser extent.

Keywords