Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/234689 
Year of Publication: 
2020
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1103
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper studies the relationship between competition measures at the bank level and the price of credit for non-financial firms in Mexico during 2009-2016. Two indicators of competition are constructed: the Lerner indicator and the Boone indicator. Evidence is provided that similar loans provided by banks with higher market power (Lerner indicator) are significantly more expensive: 11 percent higher than the mean interest rate. In addition, that price difference is concentrated in loans given out to microenterprises and small firms, and firms located in the central and southern regions of the country.
Subjects: 
Competition
Banks
Non -financial firms
Loan interest rate
JEL: 
G1
G21
L13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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