• Environmental and Resource Economics Review
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• v.15 no.1
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• pp.51-69
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• 2006

This paper analyze the degree of competitiveness of the refining industry after price liberalization. We use two well-known methods: the first is Bresnahan (1982) and Lau (1982) method that estimates a structural model consisting of a demand relation and supply relation and the second is Panzar and Rosse (1987) method that estimates non structural model of the sum of elasticities of gross revenue with respect to input prices. Results from two models show mixed sign, however, our results indicate that price liberalization improved the degree of competitiveness.

• KDI Journal of Economic Policy
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• v.25 no.1
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• pp.55-98
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• 2003

This paper examines the hypothesis that states consolidation and concentration within Korean banking industry have impaired competition and escalated market power of banks. Competition is measured using Bresnahan-Lau method, which estimates a structural model consisting of a demand function and a supply function of banking services, based on aggregate monthly data of January 1996 to December 2002. Estimations indicate that pricing behavior of Korean banks during the period is consistent with perfect competition, and they behave more competitively even after the increase in concentration ratio. The results imply that, contrary to the concerns over the potential for monopoly power, bank competition may not be damaged by the consolidation.