Testing the law of one price in retail banking: An analysis for Colombia using a pair-wise approach

C-Tier
Journal: Economics Letters
Year: 2013
Volume: 118
Issue: 1
Pages: 29-32

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We apply a pair-wise approach to test the law of one price for deposit (lending) rates in Colombia. We find that when banks are of different sizes, deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly when banks are of similar sizes, supporting market segmentation.

Technical Details

RePEc Handle
repec:eee:ecolet:v:118:y:2013:i:1:p:29-32
Journal Field
General
Author Count
2
Added to Database
2026-01-25