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Reply to “Remarks on Bank Competition and Convergence Dynamics”

Author

Listed:
  • Maria Karadima

    (Department of Economics, Athens University of Economics and Business, 76 Patission Street, GR-10434 Athens, Greece)

  • Helen Louri

    (Department of Economics, Athens University of Economics and Business, 76 Patission Street, GR-10434 Athens, Greece
    European Institute/Hellenic Observatory, London School of Economics, Houghton Street, London WC2A 2AE, UK)

Abstract

In this reply, we provide detailed answers to the remarks made by Tsionas on the use of stochastic frontier-based measures of market power in a part of our empirical study, which examines the fragmentation and convergence dynamics of market power, concentration and credit risk in the euro area banking sector during 2005–2017. Our answers clarify all the issues raised by Tsionas and show that the only challenging, in our opinion, point of the criticism has been based on a hypothesis that does not hold in the case of our study.

Suggested Citation

  • Maria Karadima & Helen Louri, 2020. "Reply to “Remarks on Bank Competition and Convergence Dynamics”," JRFM, MDPI, vol. 13(6), pages 1-6, June.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:6:p:127-:d:371667
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    References listed on IDEAS

    as
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    6. Carbó, Santiago & Humphrey, David & Maudos, Joaquín & Molyneux, Philip, 2009. "Cross-country comparisons of competition and pricing power in European banking," Journal of International Money and Finance, Elsevier, vol. 28(1), pages 115-134, February.
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