183-209

• Δράκος, Κωνσταντίνος
• Κωνσταντίνου, Παναγιώτης

In this paper we focus on the market structure of the banking system in a set of Transition countries. In particular, by employing reduced-form revenue equations in a panel framework we are able to estimate the Panzar-Rosse h-statistic. We mainly control for heterogeneity by conditioning our estimation on bank-specific characteristics so as to account for differences in financial risk, size and finance mix. Our empirical results indicate that for the vast majority of cases banking systems operate under Monopolistic Competition.

• Economics and Business
• Computer and information sciences

• Finance
• Statistics

h-statistic, market structure, panel estimation, transition banking

Περιέχει πίνακες, σημειώσεις, παράρτημα και βιβλιογραφία, We are grateful to Ali Kutan, Alastair McAuley, George Symeonidis and Michael Ehrmann for their insightful comments, as well as anonymous referees, whose detailed comments helped us considerably in improving the content and exposition of the paper. Earlier versions of the paper were presented at the X Tor Vergata Conference on “Banking and Finance” in Rome and the EEFS Conference in Heraklion, Crete. Comments from conference participants led to the current version of the paper. This paper was initiated while Konstantinou was a scholar of the Lilian Voudouris Foundation. Konstantinou’s work on this paper is also part of a research network on ‘The Analysis of International Capital Markets: Understanding Europe’s Role in the Global Economy’, funded by the European Commission under the Research Training Network Program (Contract No. HPRNCT-1999-00067). Any remaining errors and ambiguities are our responsibility., JEL Classification: C33, G21, L11, P34