||Competition among Regional Banks in Japan : Evidence from the Boone Indicator
Gunji, HiroshiMiura, Kazuki
Journal of International Economic Studies
86 , 2017-03 , Institute of Comparative Economic Studies, Hosei University
In this study, we use the method of Boone et al. (2007, How (not) to measure competition, TILEC Discussion Paper, No. 2007 - 014), known as the Boone indicator, to estimate competition in the banking industry in Japan. Classical methods, for example, market share, price-cost margin, and the Herfindahl-Hirschman Index, are not monotonically related to competition, so they are inappropriate. On the other hand, as many studies by Boone suggest, the Boone indicator can capture precisely the degree of competition. Our results show that the banking industry in Japan has been more competitive in recent years.