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Boone Indicator in Banking Market for Australia (DDOI05AUA156NWDB)

Observations

2011: 0.27606
Updated: Mar 23, 2022 4:28 PM CDT
2011:  0.27606  
2010:  0.04960  
2009:  0.17520  
2008:  0.12966  
2007:  -0.01474  

Units:

Index,
Not Seasonally Adjusted

Frequency:

Annual

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Notes

Title Release Dates
Boone Indicator in Banking Market for Australia 2012-09-24 2022-03-23
 
Source    
World Bank 2012-09-24 2022-03-23
 
Release    
Global Financial Development 2012-09-24 2022-03-23
 
Units    
Index 2012-09-24 2022-03-23
 
Frequency    
Annual 2012-09-24 2022-03-23
 
Seasonal Adjustment    
Not Seasonally Adjusted 2012-09-24 2022-03-23
 
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

2012-09-24 2022-03-23

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Boone Indicator (competition measure) Australia Global Financial Development Banks Depository Institutions World Bank Annual Nation Public Domain: Citation Requested Not Seasonally Adjusted