Financial deregulation and profit efficiency: A nonparametric analysis of Indian banks

The paper examines the impact of financial deregulation on cost and profit efficiency of Indian commercial banks during the post-reform period 1992–2004 using the nonparametric data envelopment analysis (DEA). The results indicate high levels of cost efficiency and lower levels of profit efficiency, reflecting the importance of inefficiencies on the revenue side of banking activity. The decomposition of profit efficiency suggests that a large portion of outlay lost is due to allocative inefficiency. A multivariate regression of the proximate causes of profit efficiencies highlights the importance of bank size, ownership, product diversity and prudential indicators as important variables driving these efficiency differences.     

The “fifth world”: Regarding the historical dimension and current relevance of the refugee and migration problem

Abstract

This paper empirically tests whether the host country's financial reform promotes the inflow of foreign direct investment (FDI). We test the hypothesis on the reform period Chinese provincial yearly panel data. The system generalized method of moments (GMM) estimation shows that the effect of financial reform on inward FDI to GDP ratios is not statistically significant after controlling for other variables and time and province effects. Consistent with the previous studies, market size and openness to international trade have significant effects on the FDI/GDP ratio in both Least squares dummy variables and system GMM estimations.     

Regulation and Deregulation after 25 Years: Lessons Learned for Research in Industrial Organization

This paper is based on a keynote address given at the 2004 International Industrial Organization Conference in Chicago, April 2004. I draw selectively on the literature from the past 25 years on regulation/deregulation to provide important lessons about the attributes of good research in empirical industrial organization.     

Uncertainty or Misvaluation? New Evidence on Determinants of Merger Activity from the Banking Industry

We use data from the past 30 years of takeover activity in the U.S. banking industry to test competing neoclassical and misvaluation merger theories. Test results are consistent with evidence in the literature that merger activity is significantly related to both structural industry change and stock price misvaluation. Our primary contribution is to show that changes in misvaluation reflect a rise in industry‐wide risk taking and that increases in risk originate from changes in industry structure due to deregulation. A measure of bank risk taking subsumes the power of stock price misvaluation to explain subsequent merger activity.     

我国推进银证混业经营中的相关模式选择

在分析和比较银证混业有关经营模式、过渡模式和监管模式的基础上,结合我国现有国情,指出我国应选择纯粹金融控 股公司的经营模式、"人为渐进"的过渡模式,辅之以银监会牵头的牵头监管模式,渐进地推进银证混业。     

Implementing Electricity Restructuring

Electricity is one of the last U.S.industries in which competition is replacingregulation. We briefly review the technologyfor producing and delivering power, the historyof electricity policy, and recent state andinternational experience. We then outline themajor questions facing policymakers as theydecide whether, when, and how to implementrestructuring. We conclude with some thoughtson the California electricity crisis and otherpolitical controversies. Although theCalifornia experience has come to define whatit means for electricity markets to fail, mostof the problems it raised are among those weknow how to solve or prevent. The stillunresolved make-or-break issue remains whetherthe cooperation necessary to maintainreliability is compatible with the degree ofcompetition necessary to bring about greaterefficiency and lower prices.     

放松规制对垄断产业收入影响的理论与实证研究

近年来,垄断产业的高收入问题引起了社会各界的广泛关注.放松规制是垄断产业改革的重要方向.本文建立了委托代理模型分析放松规制对垄断产业收入的影响,并利用OECD主要国家的截面数据进行实证研究,其结果表明,放松规制会降低垄断产业的收入,有效降低我国基尼系数,有利于缓解收入分配不均的现象.     

航空公司的管制和放松管制之争

对航空公司实施经济管制的两个主要理由是垄断势力的威胁和破坏性的竞争。不存在规模经济、进入和退出壁垒小、可竞争性理论可适用于民航运输市场是支持放松航空公司管制的三个理论支柱,但它们不断受到许多研究者的质疑。然而来自经济现实的证据表明,放松管制在机票价格、服务质量、生产效率等方面改善了产业绩效。     

Did rent deregulation alter tenure choice decisions in the Czech Republic?

Our study is the first that explicitly links rent deregulation and the choice between owning and renting (the tenure choice) using household decisions over a 1‐year period. The rent deregulation process in the Czech Republic started in 2006, two years after joining the European Union. By design, the maximum regulated rent appreciation depended explicitly on real estate prices, which accelerated the pace of deregulation due to rapidly rising prices at the time. A unique dataset enables us to track the tenure choice of households from consumption surveys for subsequent years. The proportion of households that switched from renting to owning sharply increased among renters of regulated apartments. We show that this change was caused by the deregulation process. In contrast, rent deregulation makes owners and renters paying market rent less likely to change ownership status.     

Financial deregulation and productivity growth in banking sector: empirical evidence from Bangladesh

This article examines the effects of regulatory reform on productivity growth in the Bangladesh banking industry. We use a unique balanced panel dataset comprising bank-level annual data from the early deregulation year (1984) to the most recent available period (2012) from major commercial banks in Bangladesh. Applying the Färe-Primont index, the paper provides estimates of productivity growth and identifies sources of total factor productivity (TFP) change. Empirical results show the sample banks have experienced positive TFP change after the financial deregulation. On average, TFP growth is higher in private banks than their public sector counterparts in the post-reform period. In addition, the decomposition analysis shows technological progress is the main driver of productivity change. Similar results are obtained by using the stochastic frontier analysis (SFA). Thus, empirical results remain robust irrespective of the methodology used. The regression analysis finds a positive technical change in the first stage of the reform program, i.e. during the transition period, as leading banks employ advanced technology to compete with potential new entrants. The result also shows that the banking industry still remains concentrated within the state-owned banks.