Source: World Bank
Release: Global Financial Development
A measure of market power in the banking market. It compares output pricing and marginal costs (that is, markup). An increase in the Lerner index indicates a deterioration of the competitive conduct of financial intermediaries.
A measure of market power in the banking market. It is defined as the difference between output prices and marginal costs (relative to prices). Prices are calculated as total bank revenue over assets, whereas marginal costs are obtained from an estimated translog cost function with respect to output. Higher values of the Lerner index indicate less bank competition. Lerner Index estimations follow the methodology described in Demirgüç-Kunt and Martínez Pería (2010). (Calculated from underlying bank-by-bank data from Bankscope)
Source Code: GFDD.OI.04
World Bank, Lerner Index in Banking Market for Latvia [DDOI04LVA066NWDB], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/DDOI04LVA066NWDB, October 22, 2019.