This report is aimed at describing why the UK residential electricity (retail) market enjoys higher gross margins when compared to Vattenfall’s markets in for example Sweden. Gross margin is the difference between selling price and purchase costs, in this situation the wholesale
This report investigates the impact of market deregulation on customers and state commercial banks in China, a big developing country. I approximate a method of differentiated product demand and pricing equations under alternative market structures. Although China’s banking reforms over-all have accomplished
This document evaluates interest margin determinants in the Russian banking sector with a specific focus on the bank ownership structure. Employing a unique bank-level data covering Russia’s entire banking sector for the 1999-2007 period, we discover that the impact of a number
This study demonstrates that the common view, whereby an increase in competition leads banks to increased risk taking, fails to hold in an environment where consumers can choose in which bank to make a deposit based on their knowledge of the riskiness
This paper tests market power in the banking industry. Price-cost margins predicted by different oligopoly models are calculated using discrete-choice demand estimates of own-price and cross-price elasticities. These predicted price-cost margins are then compared with price-cost margins computed using observed interest rates
Two weak restrictions on equilibrium market structures are that firms who decide to enter make sufficient profits to cover entry costs and fixed costs of production, and that no new firm could profitably enter. I examine these restrictions by the size distribution
In this master’s thesis, hidden Markov models (HMM) are evaluated as a tool for forecasting movements in a currency cross. With an ever increasing electronic market, making way for more automated trading, or so called algorithmic trading, there is constantly a need