Given the marked reduction in the number of banks in Germany during recent years, the study estimates competitive behavior in the German banking system by applying an empirical method developed by Panzar and Rosse (1987). By estimating the banks' reduced form revenue functions, the sums of their...

Given the marked reduction in the number of banks in Germany during recent years, the study estimates competitive behavior in the German banking system by applying an empirical method developed by Panzar and Rosse (1987). By estimating the banks' reduced form revenue functions, the sums of their...

Neoclassical economists argue that competition promotes efficiency. They consider technology as given though. In the long run, technological progress is an important determinant of the level of welfare and Schumpeter argued that monopoly rents help entrepreneurs to capture the gains of R&D and,...