Market structure and the pass-through of the federal funds rate

作者：Adams Robert M^*; Amel Dean F

来源：Journal of Banking & Finance, 2011, 35(5): 1087-1096.

DOI：10.1016/j.jbankfin.2010.09.020

• Market structure
• Monetary policy
• Federal funds rate

We study the effect of local market bank concentration on business loan originations and on the pass-through of the federal funds rate to business loan originations. Economic theory on the relationship between concentration and the pass-through of input prices to quantity (or price) is ambiguous. We find that more concentrated markets have lower business loan originations and experience smaller changes in business loan originations in response to changes in the federal funds rate. Our results support the idea that market concentration dampens quantity reactions to input price changes. Published by Elsevier B.V.

• 出版日期2011-5