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WHO COMPETES WITH WHOM? THE CASE OF DEPOSITORY INSTITUTIONS *
Author(s) -
ADAMS ROBERT M.,
BREVOORT KENNETH P.,
KISER ELIZABETH K.
Publication year - 2007
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/j.1467-6451.2007.00306.x
Subject(s) - institution , work (physics) , panel data , market segmentation , economics , business , survey data collection , set (abstract data type) , monetary economics , econometrics , microeconomics , mechanical engineering , programming language , statistics , mathematics , political science , computer science , law , engineering
The willingness of consumers to substitute between banks and thrifts and between multimarket and single‐market institutions is of strong interest to policymakers, yet little empirical work exists in this area. We estimate a structural model of consumer choice of depository institutions using a broadly representative panel data set covering the U.S. from 1990–2001. Using a flexible framework, we uncover utility parameters that affect a consumer's institution choice and measure the degree of market segmentation for two institutional subgroups. Our estimated parameters, elasticities and policy experiments suggest limited substitutability between banks and thrifts and between multimarket and single‐market institutions, especially in urban markets.