The economic literature has largely ignored the existence of global common factors and local spatial dependence in the assessment of the real effects of U.S. banking deregulation. Motivated by consistency concerns, this study uses spatial econometric models with common factors to analyze the...

We use panel data from the EU-25 to estimate the effect of changes in the degree of banking market concentration on the stability of banks by performing separate analyses at the country level and the bank level. The results indicate that the level of analysis matters. Whereas our country-level...

The aggregate Lerner index is a popular composite measure of multi-product banks' market power, based on the assumption that banks' single aggregate output factor is total assets. This study identifies three limitations of the aggregate Lerner index that potentially distort its interpretation as...

We propose a new identification strategy for the quadratic regression model with classical measurement error, based on higher-order moment conditions. Our novel approach contributes to the literature in two ways: by not requiring any side information (such as a known measurement-error variance,...

This study investigates the effects of banking deregulation on county-level economic growth in the U.S. during the 1970–2000 period. Our main contribution to the literature is that we analyze both the direct and external effects of banking deregulation on local economic growth. For the regions...