On the Relationship between Competition and Efficiency in the EU Banking Sectors

作者: Laurent Weill , Robert Schuman

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摘要: Evidence is scarce regarding the impact of competition on efficiency in banking, even if it represents a very relevant issue to assess benefits heightened banking competition. This work investigates relationship between and sample 12 EU countries during period 1994-1999. Competition measured by Rosse-Panzar H-Statistic, while estimated with stochastic frontier approach. We provide support negative which does not then corroborate intuitive positive influence efficiency.

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