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The Pricing of Bank Deposits: A Theoretical and Empirical Analysis

Published online by Cambridge University Press:  19 October 2009

Michael A. Klein  and
Neil B. Murphy
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Extract

There has developed over the last several years a large and growing literature on the relationship between local bank market structure and performance. Two characteristics of this development are particularly notable. First, a carefully structured microeconomic model of the banking firm is rarely used as the starting point of the analysis. Secondly, the possibility that local market structure may have a differential impact on bank performance in different activities seems to have escaped systematic investigation. Specifically, it is a contention of this study that an empirical investigation of structure and performance in banking must be grounded in the explicit development of a microeconomic model of the banking firm.

Type
Financial Institutions
Information
Journal of Financial and Quantitative Analysis , Volume 6 , Issue 2 , March 1971 , pp. 747 - 761
Copyright
Copyright © School of Business Administration, University of Washington 1971

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References

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