The Influence of Credit Union and Savings and Loan Competition on Bank Deposit Rates in Idaho and Montana

This study examines the effect of S & L and credit union competition on bank behaviorin Idaho and Montana. A structure-performance OLSmodel is used to estimate bank interest rates oncertain deposits. Two key independent variables arelocal market share of credit unions and S & Ldeposits. Overall, previous studies found littleevidence that thrift competition affects bankperformance. We found some evidence that thriftcompetition, especially from credit unions, resultsin higher interest rates for bank CDs. Theseresults have policy implications as banking groupscurrently seek to restrict credit union competition.     

The economics of advertising: Where's the data?

Economists accept the importance of advertising to firm rivalry and economic performance, but data limitations have frustrated empirical research. This paper addresses that frustration and compares sources of advertising data. The paper concludes that data provided by a private vendor on measured-media consumer advertising represents the best choice, but involves substantial effort to link it to the Census industrial classification system. The authors do this for 284 manufacturing industries for Census years 1967 and 1982. Comparisons of industry advertising levels and advertising-to-sales ratios are given. Relative advertising levels and intensities have remained remarkably stable over the 15 year period.