(Gabaix, 2011) for the banking sector, introducing Bertrand competition and heterogeneous banks charging variable markups …. Using this framework, we show conditions under which idiosyncratic shocks to bank lending can generate aggregate … sector for many countries is indeed granular, as the right tail of the bank size distribution follows a power law. We then …

The theoretical literature remains inconclusive on whether changes in bank exposure towards the domestic sovereign have … an adverse effect on the sovereign risk position via a diabolic loop in the sovereign-bank nexus or reduce perceived … exogenous changes in bank exposure on the risk position of the sovereign within a Markov switching structural vector …

market power appears to be constrained by competition and largely determined by demand side factors. Finally, we find that …

Boone (2008a) proposes a new competition measure based on Relative Profit Differences (RPD) with superior theoretical … indicator fails to correctly indicate competition. A proposed augmented indicator based on RPDs performs better. The traditional … Lerner-Index is still the only meas-ure that correctly indicates the expected competitive changes. -- Competition ; Boone …

conventional counterparts. The results are robust to different estimation methods and data specifications. Alternative banks also …