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Modern trade theory emphasizes firm-level productivity differentials to explain the cross-border activities of non-financial firms. This study tests whether a productivity pecking order also determines international banking activities. Using a novel dataset that contains all German banks'...
Persistent link: https://www.econbiz.de/10012989228
also discussed in relevant literature. The natural estimation method seems to be Maximum Likelihood (ML) estimation because … estimation approaches for both the half-normal and the exponential approach to inefficiency. Based on the simulation results we … obtain decision rules for the choice of the superior estimation approach. Both estimation methods, ML and MOM, are applied to …
Persistent link: https://www.econbiz.de/10012989267
Banks face a tradeoff between diversifying and focusing their loan portfolio. In this paper we carry out an empirical study for the German market to shed light on the question whether or not the benefits of risk sharing outweigh those of specialization. We use data from the Bundesbank's...
Persistent link: https://www.econbiz.de/10012989297
This paper studies the sectoral and geographical dimensions of the response of bank lending to sectoral growth. We use several bank-level datasets provided by the Deutsche Bundesbank for the 1996-2002 period. Our results show that bank heterogeneity affects how lending responds to domestic...
Persistent link: https://www.econbiz.de/10012989307
Persistent link: https://www.econbiz.de/10012989325