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Is the market concentration and interest-rates relationship in the Mexican commercial banking industry a sign of efficiency?

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  • Clemente Hernandez-Rodriguez

    (ITESM Campus Guadalajara)

Abstract

This paper investigates the functional relationship between concentration and interest-rates in the Mexican commercial banking industry. A fundamental contribution of this essay is the use of parametric, nonparametric, and semiparametric procedures to determine the functional form of the concentration and interest-rate relationship. Regularities across products are checked. The semiparametric estimation dominates the other methods. The resulting functional form seems to support the prediction of the structure-conduct-performance paradigm of a positive concentration-price relationship.

Suggested Citation

  • Clemente Hernandez-Rodriguez, 2005. "Is the market concentration and interest-rates relationship in the Mexican commercial banking industry a sign of efficiency?," EconoQuantum, Revista de Economia y Finanzas, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 1(2), pages 7-38, Enero-Jun.
    • Handle: RePEc:qua:journl:v:1:y:2005:i:2:p:7-38
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Market Concentration; Interest-Rate; Semiparametric Estimation; Structure-Conduct-Performance Paradigm; Efficient-Structure Paradigm;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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