Applied Economics ( IF 1.916 ) Pub Date : 2021-06-20 , DOI: 10.1080/00036846.2021.1923636 Noam Tanner 1 , Danielle Zanzalari 1 , Mark Manion 1 , Eric Haavind-Berman 1
ABSTRACT
Using techniques from industrial organization, we capture the sensitivity of deposit balances to own and competitor pricing by estimating demand functions in U.S. retail deposit markets. The demand functions are used to compute elasticities of demand for bank deposits in order to study the relative importance of deposit rates over different interest rate environments. We find that the magnitudes of own- and cross-price elasticities are higher in high rate periods (when the federal funds rate is above 2%) than in low rate periods. We also compare different sized firms and find that smaller firms’ elasticities are more sensitive to the interest rate cycle.
中文翻译:
美国零售银行在高利率和低利率环境下存款服务的需求弹性
摘要
使用来自行业组织的技术,我们通过估计美国零售存款市场的需求函数来捕捉存款余额对自有和竞争对手定价的敏感性。需求函数用于计算银行存款的需求弹性,以研究存款利率在不同利率环境下的相对重要性。我们发现,在高利率时期(当联邦基金利率高于 2% 时),自有和交叉价格弹性的幅度高于低利率时期。我们还比较了不同规模的公司,发现较小公司的弹性对利率周期更敏感。