Enjoying the Quiet Life under Deregulation? Evidence from Adjusted Lerner Indices for U.S. Banks

By M. Koetter, James W. Kolari, Laura Spierdijk. Review of Economics and Statistics, 2012

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Competition and the performance of microfinance institutions (2013, positive): “Koetter et al. (2012) present results on the Lerner index for a sample of around 4000 US bank holding companies, indicating that the index is between 0.20 and 0.25 (depending on the methodology used to calculate the cost function).”
Is financial inclusion good for bank stability? International evidence (2017, methodology): “Therefore, we also follow Koetter et al. (2012) to estimate efficiency adjusted Lerner index (E-Lerner) (as explained in Online Appendix Section E2).”
Small Banks and Local Economic Development (2015, neutral): “Driven by market power (Claessens and Laeven, 2004, 2005; Carbó-Valverde et al., 2009; Koetter et al., 2012), scale economy (Berger, 1995; DeYoung et al., 2009; DeYoung, 2012; Wheelock and Wilson, 2012) and too-big-to-fail motives (Mishkin, 2006; Kane, 2000; Stolz and Wedow, 2010; Laeven and…”
Is There a Competition-Stability Trade-Off in European Banking? (2017, positive): “As noted by Koetter et al. (2012), no adjustment for inefficiency could bias estimations of the Lerner index.”
Market concentration, risk-taking, and bank performance: evidence from emerging economies (2013, background): “A recent study by Koetter et al. (2012) presents a more complex picture with a negative association between market power and profit efficiency but a positive association between market power and cost efficiency.”