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ANNALS OF ECONOMICS AND FINANCE 14-2(B), 853–892 (2013) Monopoly versus Competition in Banking: Some Implications for Growth and Welfare
| Content Provider | CiteSeerX |
|---|---|
| Author | Paal, Beatrix Smith, Bruce |
| Abstract | We consider how the industrial organization of the financial system affects an economy’s macroeconomic performance. In particular, we compare two otherwise identical monetary economies — one with a competitive and the other with a monopolistic banking system — along the dimensions of bank liquidity provision, asset allocation, savings behavior, long-run real growth, and depositor welfare. We find that monopoly in banking can potentially be growth promoting. However, the relative performance of the two banking systems depends crucially on the level of nominal interest rate. 1. |
| File Format | |
| Access Restriction | Open |
| Subject Keyword | Depositor Welfare Bank Liquidity Provision Economy Macroeconomic Performance Monopoly Versus Competition Identical Monetary Economy Saving Behavior Monopolistic Banking System Long-run Real Growth |
| Content Type | Text |