Measuring the monopoly power of Iran's banking industry with the Hall-Roger approach

Subject Areas : Financial Economics

Jafar Yousefi ¹ , Mehdi Moradi ^{2 *} , Seyed Yousef Hajiasghari, ³ , Rostam Gharehdaghi ⁴

1 - PhD student in Development Economics, Middle Branch, Islamic Azad University, Middle, Iran.
2 - Assistant Professor, Department of Economics, Middle Branch, Islamic Azad University, Middle, Iran
3 - Assistant Professor, Department of Management, Middle Branch, Islamic Azad University, Middle, Iran
4 - Assistant Professor, Department of Management, Middle Branch, Islamic Azad University, Middle, Iran

Received: 2023-05-28 Published : 2025-07-02

Keywords: L6, L1, F1.,

Abstract :

Abstract In recent years, market power in various industries including the banking industry has attracted the attention of researchers, the reduction of monopoly power in the banking industry reduces the cost of financial intermediation and increases economic growth and social welfare, so in this article, the market structure of the industry Iranian banking was investigated using the Hall-Roger model in the period of 1380-1400 and the Lerner index was calculated for 33 public and private banks. The research results show that the Lerner index for 29 banks is between 0.11 and 0.93 and is negative for three other banks; Therefore, the findings confirm that in more than 88% of active banks in the country, there is a significant gap on the final price and cost. Also, in this research, Herfindahl-Hirschman empirical indices and CR4 index were also calculated and the results of calculations on both indices indicate the fact that the monopoly power in the money market has decreased in this period and the competition coefficient has increased. Keywords: banking industry, monopoly power, Lerner index, Hall-Roger

References:


فهرست منابع
پژویان ،جمشید خداداد کاشی فرهاد و شهیکی ،تاش محمد نبی (۱۳۹۰)، ارزیابی نا پارامتریک شکاف بین قیمت و هزینه نهایی در صنایع ایران در قالب یک مدل کورنویی. فصلنامه اقتصاد ،مقداری، ۸ (۲)، ۹۵-۱۲۱
خداداد کاشی فرهاد و ،حاجیان محمدرضا (۱۳۹۳) محاسبه قدرت بازاری در صنعت بانکداری ایران طی سال‌های ۱۳۸۹ - ۱۳۸۰ فصلنامه تحقیقات مدلسازی اقتصادی، ۴ (۱۵)، ۱۱۶-۹۵.
شهیکی تاش, محمد نبی و ,عبدی. (2016). سنجش اندازه رقابت در بازار بانکی ایران: رویکرد هال-راجر. اقتصاد و الگو سازی, 7(25), 47-73.‎
دانشور بهاره (۱۳۹۶) اقتصاد مقاومتی و بانکداری اسلادر ایران شیراز: انتشارات نوید شیراز تأثیر
رمضان ،احمدی، علی ،واعظ سید علی آر من سید عزیز و درسه سید صابر (۱۳۹۶)، بررسی رقابت در بازار محصول بر خطر سقوط قیمت سهام فصلنامه دانش حسابداری مالی۱۱۷-۱۴۲ ،(۳) ۴.
شهیکی تاش، محمد نبی و ،نوروزی علی (۱۳۹۳) محاسبه پارامتریک شاخص لرنر و ارزیابی درجه رقابت و انحصار صنایع ،ایران فصلنامه مدل سازی اقتصادی، ۸ (۳)، 89-71 .
شهیکی تاش محمد نبی و عبدی یعقوب (۱۳۹۵)، سنجش اندازه رقابت در بازار بانکی :ایران رویکرد هال راجر فصلنامه اقتصاد و الگوسازی، ۷ (۲۵) 73-47.
برقندان کامران پهلوانی مصیب و شهیکی تاش محمدنبی. (1398). شاخص شاخص لرنر استراتژی محور جهت تعیین قدرت بازاری دو شرکت ایران خودرو و سایپا.
شیوایی، الهام (1399). سنجش شاخص لرنر صنایع تبدیلی بخش کشاورزی ایران رهیافت سازمان صنعتی، نشریه عل(فصلنامه) پژوهش‌های اقتصاد صنعتی. شماره ۱۰. صص 77-87.
شریفی نیا، ح.، مؤمنی وصالیان، ه.، دقیقی اصلی، ع.، دامن کشیده، م.، مرجان، و افشاری راد. (2020). ارزیابی قدرت رقابتی و سیاست پولی بر بازده دارایی‌ها در بانک‌های ایران (رهیافت الگوهای ساختاری). اقتصاد مالی اقتصاد , 14 (51), 1-28. ‏
پژویان، جمشيد؛ خداداد کاشی، فرهاد و محمد نبی شهيکی تاش (1390). ارزیابی شکاف بين قيمت و هزینه نهایی در صنایع ایران، مجله اقتصاد مقداری، شماره 26.
خداداد کاشی نورانی آزاد و اسحاقی گرجی. (2017). رقابت، انحصار و الگوی رفتاری در صنعت ایران با استفاده از روش‌های غیرساختاری. پژوهشنامه بازرگانی , 21 (81), 1-30. ‏
نورانی، آزاد و اسحاقی، گرجی. (2018). سنجش پویای ضریب کشش تغییرات حدسی و قدرت بازاری در صنعت چاپ ایران. فصلنامه پژوهش های اقتصاد صنعتی , 2 (4), 89-102. ‏
یوسفی حاجی‌آباد، رضا (1395). بررسی اثرات درجه انحصار بازار بر سودآوری سیستم بانکداری ایران با استفاده از روش خود رگرسیون با وقفه توزیعی. فصلنامه پژوهش‌های اقتصادی صنعتی. دوره ۲. شماره ۳. صص 45-56.
یوسفی حاجی‌آباد، رضا و اقبالی علیرضا (۱۳۹۹). قدرت بازاری در صنعت بانکداری ایران و عوامل مؤثر بر آن، فصلنامه علمی‌پژوهشی اقتصاد صنعتی شماره ۱۲. صص ۲۵-۳۴.
یوسفی حاجی آباد, رضا و خداداد کاشی, فرهاد. (1392). بررسی ارتباط عملکرد صنایع با سطح تمرکز و نوآوری بخش صنعت ایران با استفاده از مدل‌های رگرسیونی PVAR. فصلنامه علمدلسازی اقتصادی, شماره 4. صص 121-135.
Ahmad, M., Khan, S., Haq, Z. U., & Khattak, S. I. (2023). Measuring Market Power in the Sugar Industry of Pakistan. Journal of the Knowledge Economy, 1-26.
Beck, T., Demirgüç-Kunt, A., & Maksimovic, V. (2004). Bank competition and access to finance: international evidence. Journal of Money, Credit and Banking, 36, 627-648.
Coccorese, P., & Santucci, L. (2020). Banking competition and bank size: Some evidence from Italy. Journal of Economics and Finance, 44, 278-299.
Omidinejad, M. (2012). Iranian Banking Performance Report in 2011 (in Persian), Iranian Banking Education Institute, Tehran, (1).
Iranian Central Bank, Monetary and Banking Research Institute. (2012). Conference on Non-Banking Credit Institutes in Iran (in Persian), Tehran.
Hosseini, MA., Permeh, Z. (2010). Evaluating of Monopoly, Competition and Concentration at Iranian Chicken Meet and Eggs Market (in Persian), Journal of Knowledge and Development, (30). Kodad-e- Kashi, F., Jafari Leylab, P. (1998).
Market Structure and Performance: Theory and Application in Iranian Industry (in Persian), Institute of Business Research Studies.
Kodad-e- Kashi, F., Jafari Leylab, P. (2012). Market Structure of Iranian Banking Sector from 2006 to 2011 (in Persian), Business Studies, (52), 34-40.
Ebadi, J, Shahiki Tash, MN,. (2004). Evaluation of Competition Degree in Iranian Industrial Markets, Journal of Business Studies, (31) (in Persian).
Sadrey-e-Johari, A., Zabihidan, MN,. (2012). Survey the Effect of Research & Development on Iranian Manufactories Performance (S- C-P method), Journal of Economic Strategy, (3) 1(in Persian).
Najarzaedeh, R,. Ezati, M,. Mirzanejad, H,. (2012). Evaluating of Competitiveness Degree of Iranian Banking Sector Using Panzar- Rosse Model, Journal of Iranian Economic Studies, (51), 157-179(in Persian).
Pagano, M. (1993). Financial markets and growth: an overview. European Economic Review, 37, 613-622.

Ministry of Commerce, The Planning and Economic Affairs Office,.(2004). The Survey of Structure (Measuring the Concentration Degree) in Iranian Banking Sector and its Social Costs (in Persian),.
Misra, B. S., & Coccorese, P. (2022). Market power, efficiency and stability of Indian banks. Economic Change and Restructuring, 55(4), 2263-2292.
Appelbaum, E. (1979) "Testing price taking behavior" journal of econometrics (9): 283-94.
Appelbaum, E. (1982), "the estimation of the degree of oligopoly power". Journal of econometrics (19): 287-99.
Al-Muharrami,S, Mathews, K, and Y, Kabir(2006), Market Structure and CompetitiveConditions in the Arab GCC Banking System, Cardiff Economic Working Papers.
Thum-Thysen, A & Canton, E,. (2015). Estimation of Service Sector Mark-Ups Determined by Structural Reform Indications,. European Economy,. Economic Papers No. 547.
Azzam, A. (1997). "Measuring market power and cost- efficiency effects of industrial concentration "Journal of industrial economics 45 (4): 377-86.
Baltagi, Badi Hani, Econometric analysis of Panel Data, British library Cataloguing in Publication Data, John Wiely & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex Po19 8SQ, England, third edition, 2005.
Bresnahan, Timothy F. (1989) 'Studies of Industries with Market Power', in Richard Schmalensee and Robert Willig (eds.), Handbook of industrial Organization, New York: North Holland.
Bikker, A, Jacob; Haaf K; Measuring of Competition and Concentration in the Banking Industry; A review the Literature; De Nederlandche Bank; Research Series Supervision no.27; September 2000.
Bikker, A, Jacob; Haaf, Katharina; Competition, Concentration and their Relationship: An Empirical Analysis of the Banking Industry; Journal of Banking & Finance; JBF 1747; no. of pages 25; 2002 Bikker, A, Jacob; Groeneveld, JM; Competition and Concentration in EU Banking Industry; De Nederland's Bank, Research series Supervision,no.8; June 1998.
Bresnahan, Timothy F. (1989) 'Studies of Industries with Market Power', in Richard Schmalensee and Robert Willig (eds.), Handbook oflndustrial Organization, New York: North Holland.
Boone, J. (2008). Competition: theoretical parameterizations and empirical measures. Journal of Institutional and Theoretical Economics, 164:587,611.
Boone, J. (2008). A new way of measuring competition, The Economic Journal, 118:1245,61.
Diana, chand Esfahani, A (2006), modeling market power in the Indonesian palm oil industry, www. Usyd. edu. Au.
Fukuyama, H., & Tan, Y. (2022). Estimating market power under a nonparametric analysis: evidence from the Chinese real estate sector. OR Spectrum, 1-24.
Hall, Robert E. (1988) "The Relationship between Price and Marginal Cost in U. S. Industry', Journal of Political Economy 96, 921-47.
Iwata, G. (1974)"measure ment of conjectural variation in oligopoly, econometrical42): 947-66.
Lau, Lawrence J. (1982) 'On Identifying the Degree of Competitiveness from Industry Price and Output Data', Economics Letters 10, 93-9.
Oliveira Martins, J., and Scarpetta, S(1999), "The Levels and Cyclical Behaviour of Mark-ups Across Countries and Market Structures", OECD Economics Department Working Papers No. 213.
Panzar, John C. and Rosse, James N. (1987) 'Testing for "Monopoly" Equilibrium', The Journal of Industrial Economics 35, 443-56.
Perloff. J & Shen. E,(2012) "Collinearity in Linear Structural Models of Market Power," Review of Industrial Organization, Springer, vol. 40(2), pages 131-138, March.
Rezitis N. Anthony; Evaluating the State of Competition of the Greek Banking Industry; Journal of International Financial Markets, Institutions & Money; 20; pp.68-90; 2010
Roeger, W.(1995) "Can Imperfect Competition explain the Difference between Primal and Dual Productivity Measures? Estimates for US Manufacturing", Journal of Political Economy, 103, 316-30.
Harkati, R., Alhabshi, S. M., Kassim, S., & Ariffin, N. M. (2022). Market structure and power: comparative empirical evidence from a dual banking system. Economic Change and Restructuring, 1-59.
Shaffer; Sherrill; A Test of Competition in Canadian Banking; Journal of Money, Credit and Banking, Vol.25; No.1 (Feb 1993); PP. 49-61.
Simpasa, Anthony Musonda. "Competition and market structure in the Zambian banking sector." (2013).
Twomey. P, Green. R (2005),A Review of the Monitoring of Market Power, Center For Energy and Environmental Policy Research,
Tan, Y. (2020). Competition and profitability in the Chinese banking industry: New evidence from different ownership types. Journal of Industry, Competition and Trade, 20(3), 503-526.
http://web. mit. Edu / ceepr / www/publications/reprints/Reprint_209_WC. Pdf.
Simbanegavi W., Greenberg J and G., Testing for Competition in South African Banking Sector, MPRA Paper No. 43627 Posted 08, January 2013.