6533b833fe1ef96bd129c09d
RESEARCH PRODUCT
Measuring welfare loss of market power: an application to European banks
Juan Fernández De GuevaraJoaquín Maudossubject
Economics and EconometricsDeregulationSpiteEconomicsDeadweight lossMarket powerInternational economicsImperfect competitiondescription
From a model of imperfect competition among banking firms, this study derives an analytical expression that allows empirical quantification of the welfare loss associated with imperfect competition. Its application to the specific case of the European banking system shows that in spite of the process of deregulation, market power increased during the 1990s in 10 out of the 15 countries of the EU. The welfare loss associated with market power represents close to 2.5% of EU GDP.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2004-10-20 | Applied Economics Letters |