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題名 Competition, efficiency, and innovation in Taiwan’s banking industry — An application of copula methods
作者 黃台心
Huang, Tai-Hsin
Hu, Chu-Nan
Chang, Bao-Guang
貢獻者 金融學系
關鍵詞 Competitive conditions ; Lerner index ; Copula methods ; Financial innovations ; Quiet life hypothesis ; Inverted-U shape
日期 2018-02
上傳時間 30-Jan-2018 15:18:26 (UTC+8)
摘要 This paper proposes a simultaneous stochastic frontier model that consists of a cost frontier and an output price frontier that relates a firm’s output price (P) to its marginal cost (MC). The gap between P and MC reflects a firm’s degree of market power, and the Lerner index (LI) is equal to the ratio of the gap to P. The salient feature of our model permits LI to be internally determined by the simultaneous equations model, which avoids obtaining negative estimates of the index. The joint probability density function of the composed errors can be derived in the context of copula methods. Our model is applied to study the competitive conditions of Taiwan’s banking industry. Findings show that: (1) the quiet life hypothesis is rejected; (2) the relationship between financial innovation, measured by the technology gap ratio of Huang et al. (2014), and our LI is U-shaped, which is robust over different specifications; and (3) the nexus between innovation and competition is inverted-U shape and consistent with Aghion et al. (2005) and Bos et al. (2013).
關聯 The Quarterly Review of Economics and Finance, Volume 67, Pages 362-375
資料類型 article
DOI https://doi.org/10.1016/j.qref.2017.08.006
dc.contributor 金融學系-
dc.creator (作者) 黃台心zh_TW
dc.creator (作者) Huang, Tai-Hsinen_US
dc.creator (作者) Hu, Chu-Nanen_US
dc.creator (作者) Chang, Bao-Guangen_US
dc.date (日期) 2018-02-
dc.date.accessioned 30-Jan-2018 15:18:26 (UTC+8)-
dc.date.available 30-Jan-2018 15:18:26 (UTC+8)-
dc.date.issued (上傳時間) 30-Jan-2018 15:18:26 (UTC+8)-
dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/115654-
dc.description.abstract (摘要) This paper proposes a simultaneous stochastic frontier model that consists of a cost frontier and an output price frontier that relates a firm’s output price (P) to its marginal cost (MC). The gap between P and MC reflects a firm’s degree of market power, and the Lerner index (LI) is equal to the ratio of the gap to P. The salient feature of our model permits LI to be internally determined by the simultaneous equations model, which avoids obtaining negative estimates of the index. The joint probability density function of the composed errors can be derived in the context of copula methods. Our model is applied to study the competitive conditions of Taiwan’s banking industry. Findings show that: (1) the quiet life hypothesis is rejected; (2) the relationship between financial innovation, measured by the technology gap ratio of Huang et al. (2014), and our LI is U-shaped, which is robust over different specifications; and (3) the nexus between innovation and competition is inverted-U shape and consistent with Aghion et al. (2005) and Bos et al. (2013).en_US
dc.format.extent 1004929 bytes-
dc.format.mimetype application/pdf-
dc.relation (關聯) The Quarterly Review of Economics and Finance, Volume 67, Pages 362-375-
dc.subject (關鍵詞) Competitive conditions ; Lerner index ; Copula methods ; Financial innovations ; Quiet life hypothesis ; Inverted-U shapeen_US
dc.title (題名) Competition, efficiency, and innovation in Taiwan’s banking industry — An application of copula methodsen_US
dc.type (資料類型) article-
dc.identifier.doi (DOI) 10.1016/j.qref.2017.08.006-
dc.doi.uri (DOI) https://doi.org/10.1016/j.qref.2017.08.006-