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Empirical analysis of the market structure of the Hungarian bank market

Author

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  • Veronika Szádoczkiné Varga

    (Corvinus University of Budapest)

  • Zoltán Madari

    (Corvinus University of Budapest)

Abstract

This paper analyzes the market structure of the Hungarian bank market and the effects of the financial crisis of 2008 on it. With a static and a dynamic panel model we estimate the elasticity of total revenues with respect to changes in input prices so that we can determine the market structure based on the Panzar and Rosse methodology for the period between 2003 and 2020. We test the input price elasticity according to the balance sheet and profit and loss data of the top 13 companies. The results show that the Hungarian bank market was a monopolistic competition or a monopoly market in long run equilibrium. To see the effects of the financial crisis we use three subsamples, furthermore we estimate and test the H-statistic with a fixed effect model. During the examined period the level of factor price elasticity increased in time.

Suggested Citation

  • Veronika Szádoczkiné Varga & Zoltán Madari, 2024. "Empirical analysis of the market structure of the Hungarian bank market," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(4), pages 1013-1033, December.
    • Handle: RePEc:spr:cejnor:v:32:y:2024:i:4:d:10.1007_s10100-024-00916-1
    DOI: 10.1007/s10100-024-00916-1
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    1. Botond Bertok & Péter Biró & Marianna E.-Nagy, 2024. "Overview of Hungarian operations research based on the VOCAL 2022 conference," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 32(4), pages 897-902, December.

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