dc.contributor.author | Kim, Moshe | |
dc.contributor.author | Kristiansen, Eirik Gaard | |
dc.contributor.author | Vale, Bent | |
dc.date.accessioned | 2018-05-16T12:48:21Z | |
dc.date.available | 2018-05-16T12:48:21Z | |
dc.date.issued | 2005 | |
dc.identifier.isbn | 82-7553-314-7 | |
dc.identifier.isbn | 82-7553-315-5 | |
dc.identifier.issn | 0801-2504 | |
dc.identifier.issn | 1502-8143 | |
dc.identifier.uri | http://hdl.handle.net/11250/2498431 | |
dc.description.abstract | We introduce a model analyzing how asymmetric information problems in a bank-loan market may evolve over the age of a borrowing firm. The model predicts a life-cycle pattern for banks’ interest rate markup. Young firms pay a low or negative markup, thereafter the markup increases until it falls for old firms. Furthermore, the pattern of the life-cycle depends on the informational advantage of the inside bank and when more dispersed borrower information yields fiercer bank competition. By applying a new measure of the informational advantage of inside banks and a large sample of small Norwegian firms, we find empirical support for the predicted markup pattern. We disentangle effects of asymmetric information (Akerlof effect) from effects of a concentrated banking market (Herfindahl effect). Our results indicate that the interest rate markups are not influenced by bank market concentration. | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Norges Bank | nb_NO |
dc.relation.ispartofseries | Working Papers;8/2005 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | JEL: G21 | nb_NO |
dc.subject | JEL: L15 | nb_NO |
dc.subject | banking | nb_NO |
dc.subject | risk-pricing | nb_NO |
dc.subject | lock-in | nb_NO |
dc.title | What Determines Banks’ Market Power? Akerlof versus Herfindahl | nb_NO |
dc.type | Working paper | nb_NO |
dc.description.version | publishedVersion | nb_NO |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | nb_NO |
dc.source.pagenumber | 38 | nb_NO |