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H-Statistic in Banking Market for Bangladesh (DDOI03BDA066NWDB)

Observation:

2014: 0.86400 (+ more)   Updated: Sep 21, 2018 1:51 PM CDT
2014:  0.86400  
2013:  0.76200  
2012:  0.79300  
2011:  0.81100  
2010:  0.85000  
View All

Units:

Index,
Not Seasonally Adjusted

Frequency:

Annual

NOTES

Source: World Bank  

Release: Global Financial Development  

Units:  Index, Not Seasonally Adjusted

Frequency:  Annual

Notes:

A measure of the degree of competition in the banking market. It measures the elasticity of banks revenues relative to input prices. Under perfect competition, an increase in input prices raises both marginal costs and total revenues by the same amount, and hence the H-statistic equals 1. Under a monopoly, an increase in input prices results in a rise in marginal costs, a fall in output, and a decline in revenues, leading to an H-statistic less than or equal to 0. When H is between 0 and 1, the system operates under monopolistic competition.

A measure of the degree of competition in the banking market. It measures the elasticity of banks revenues relative to input prices. Under perfect competition, an increase in input prices raises both marginal costs and total revenues by the same amount, and hence the H-statistic equals 1. Under a monopoly, an increase in input prices results in a rise in marginal costs, a fall in output, and a decline in revenues, leading to an H-statistic less than or equal to 0. When H is between 0 and 1, the system operates under monopolistic competition. (For more information, see Panzar and Rosse 1982, 1987). (Calculated from underlying bank-by-bank data from Bankscope)

Source Code: GFDD.OI.03

Suggested Citation:

World Bank, H-Statistic in Banking Market for Bangladesh [DDOI03BDA066NWDB], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DDOI03BDA066NWDB, April 16, 2024.

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