Title: Boone Indicator in Banking Market for Aruba
Series ID: DDOI05AWA156NWDB
Source: World Bank
Release: Global Financial Development (Not a Press Release)
Seasonal Adjustment: Not Seasonally Adjusted
Frequency: Annual
Units: Index
Date Range: 2004-01-01 to 2011-01-01
Last Updated: 2017-08-29 11:13 AM CDT
Notes: A measure of degree of competition based on profit-efficiency in the
banking market. It is calculated as the elasticity of profits to
marginal costs. An increase in the Boone indicator implies a
deterioration of the competitive conduct of financial intermediaries.
A measure of degree of competition, calculated as the elasticity of
profits to marginal costs. To obtain the elasticity, the log of
profits (measured by return on assets) is regressed on the log of
marginal costs. The estimated coefficient (computed from the first
derivative of a trans-log cost function) is the elasticity. The
rationale behind the indicator is that higher profits are achieved by
more-efficient banks. Hence, the more negative the Boone indicator,
the higher the degree of competition is because the effect of
reallocation is stronger. Estimations of the Boone indicator in this
database follow the methodology used by Schaeck and Cihák 2010 with a
modification to use marginal costs instead of average costs. Regional
estimates of the Boone indicator pool the bank data by regions (for
more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith,
and Harrison 2005). (Calculated from underlying bank-by-bank data from
Bankscope)
Source Code: GFDD.OI.05
DATE VALUE
2004-01-01 0
2005-01-01 0
2006-01-01 0
2007-01-01 0
2008-01-01 0
2009-01-01 0
2010-01-01 0
2011-01-01 0