market competition. We use a circular model with asymmetric production costs both for incumbent firms and potential entrants …, where unit transport cost measures the intensity of competition (quality of infrastructure). The static and dynamic welfare …, as measured by the distribution of costs in the economy, the number of incumbent firms, the degree of market competition …

technology exhibits increasing returns to scale, or it is relatively efficient, then perfect competition is optimal and supports …, or is relatively inefficient, then imperfect competition and intermediate levels of bank risks are optimal. These results …

This paper investigates the empirical relationship between competition in the financial sector and the creation of … firms in the non-financial sector. It finds that bank competition has an overall positive effect on firm creation. However …, consistent with theories of banking arguing that competition may reduce the availability of credit to informationally opaque …

As in other sectors, competition in finance matters for allocative, productive and dynamic efficiency. Theory suggests …, however, that unfettered competition is not first best given the special features of finance. I review these analytics and … describe how to assess the degree of competition in markets for financial services. Existing research shows that the degree of …

This paper presents empirical evidence on the impact of competition on firm productivity. Using firm-level observations … competition and our measures of productivity. We also find that countries that implemented product-market reforms had a more … pronounced increase in competition, and correspondingly, in productivity: the contribution to productivity growth due to …

This study reinvestigates the theoretical relationship between competition in banking and banks' exposure to risk of … failure. There is a large existing literature that concludes that when banks are confronted with increased competition, they … regulators and central bankers, causing them to take a less favorable view of competition and encouraging anti …

Traditional bank competition policy seeks to balance efficiency with incentives to take risk. The main tools are rules … seek to affect the degree of competition by focusing on market structure (i.e. concentration) may have limited effect. We … argue that bank competition policy should be reoriented to deal with the too-big-to-fail (TBTF) problem. It should also …

This paper investigates the degree of bank competition in the euro area, the U.S. and U.K. before and after the recent … financial crisis, and revisits the issue whether the introduction of EMU and the euro have had any impact on bank competition …. The results suggest that the level of bank competition converged across euro area countries in the wake of the EMU. The …