Table 6
DETERMINANTS OF DEPOSIT INTEREST RATES: ITALIAN MACROREGIONS
PANEL ESTIMATION, 1990-99
Dependent variable: banks’ deposit rate in each province.
Independent variables: Herfindahl index for deposit market shares (HER); concentration ratio (R3), i.e.
sum of the first 3 banks’ market shares per province; staff costs per employee (COSPER); costs/total
assets (COSRAT). Variables refer to end-of-year data, for the period 1990-99. Regressions include time
dummy variables, whose coefficients are not reported. t - statistics in brackets. * Significant at 1 per cent.
** Significant at 5 per cent. *** Significant at 10 per cent. Fixed-effects regressions, selected according to
the Hausman test.
|
(i) North-West |
(ii) |
(iii) |
(iv) |
(v) Islands | |
|
HER |
1.21 |
*** 0.51 |
-1.35 ** |
-0.19 |
-0.19 |
|
(1.78) |
(0.97) |
(-2.12) |
(-0.25) |
(-0.20) | |
|
COSPER |
0.74 |
-7.55 * |
-6.50 * |
-18.29 * |
-20.86 * |
|
(0.28) |
(-2.67) |
(-2.09) |
(-4.88) |
(-3.80) | |
|
COSRAT |
-2.38 |
1.66 |
1.57 |
14.57 * |
31.02 * |
|
(-0.79) |
(0.49) |
(0.41) |
(2.97) |
(4.74) | |
|
N. observat. |
2980 |
2899 |
2117 |
1689 |
876 |
|
R2 |
0.95 |
0.95 |
0.94 |
0.94 |
0.94 |
|
Sum squared |
693.57 |
718.66 |
611.79 |
482.01 |
246.68 |
|
residuals | |||||
|
Hausman test |
75.63 |
92.69 |
23.11 |
25.53 |
32.67 |
|
(i) |
(ii) |
(iii) |
(iv) |
(v) | |
|
North-West |
North-East |
Center |
South |
Islands | |
|
R3 |
0.44 |
-0.64 *** |
-0.93 *** |
-0.10 |
-1.42 |
|
(1.60) |
(-1.77) |
(-1.83) |
(-0.22) |
(-1.51) | |
|
COSPER |
0.64 |
-7.39 * |
-6.61 ** |
-18.29 * |
-20.36 * |
|
(0.24) |
(-2.61) |
(-2.12) |
(-4.88) |
(-3.72) | |
|
COSRAT |
-2.51 |
1.63 |
1.64 |
14.54 * |
29.75 * |
|
(-0.84) |
(0.48) |
(0.43) |
(2.97) |
(4.58) | |
|
N. observat. |
2980 |
2899 |
2117 |
1689 |
876 |
|
R2 |
0,95 |
0,95 |
0,94 |
0,94 |
0,94 |
|
Sum squared |
693,74 |
718,03 |
612,16 |
482,01 |
245,94 |
|
residuals | |||||
|
Hausman test |
76,15 |
97,96 |
22,55 |
25,80 |
33,09 |
35