Spillovers from entry: the impact of bank branch network expansion

• 成果类型: Article
• 署名作者: Kuehn, Joseph
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12258
• 发表日期: 2018
• 页码: 964-994
• 关键词: MARKET-STRUCTURE; empirical-analysis; wal-mart; COMPETITION; economies; DYNAMICS; QUALITY

摘要

I study why local banking markets became dominated by multimarket firms following deregulation in the 1990s. I estimate a model of branch entry that allows for spillovers across markets. The spillovers complicate estimation, and so I develop a revealed preference approach that also deals with unobserved firm and market heterogeneity. I then analyze the impact of multimarket banks and find that they increase local competition, but that they also open more branches than single-market firms, and subsequently offer lower deposit rates. Ultimately, their welfare impact differs across markets based on the availability of outside alternatives and consumer sensitivity to rates.