A COMPARATIVE STUDY OF ALTERNATIVE ECONOMETRIC PACKAGES: AN APPLICATION TO ITALIAN DEPOSIT INTEREST RATES



Table 9

DETERMINANTS OF CURRENT ACCOUNTS’ INTEREST RATES
CROSS-SECTIONS (OLS), 1990-96

Dependent variable: banks’ rates on current accounts in each province.

Independent variables: Herfindahl index for current accounts’ market shares (HER); staff costs per employee
(COSPER); costs/total assets (COSRAT); number of banks per province (NBANKS). Variables refer to end-of-
year data, for the period 1990-96. t - statistics in brackets. * Significant at 1 per cent. ** Significant at 5 per cent.
*** Significant at 10 per cent.

(i)

1990

(ii)
1991

(iii)

1992

(iv)

1993

(v)

1994

(vi)

1995

(vii)

1996

HER

-0.81

**

-0.56

***

-0.60

0.02

-0.42

-0.24

0.08

(-2.44)

(-1.81)

(-1.42)

(0.06)

(-1.46)

(-0.76)

(0.30)

COSPER

-1.55

-1.05

-33.83

*

-15.08

*

-31.08

*

-11.03

*

-33.10

(-0.20)

(-0.15)

(-3.94)

(-5.89)

(-7.13)

(-2.29)

(-8.12)

COSRAT

7.05

***

23.16

**

59.86

*

45.04

*

36.87

*

53.31

*

9.33

(1.86)

(6.87)

(12.52)

(12.68)

10.22

(13.70)

(2.26)

COSTANT

7.02

*

6.47

*

7.62

*

5.07

*

5.63

*

5.01

*

6.44

(24.86)

(20.81)

(17.32)

(32.37)

(24.09)

(18.75)

(23.20)

N. observat.

1002

1071

1203

1214

1236

1271

1240

R2

0.01

0.04

0.12

0.12

0.09

0.13

0.05

Sum squared

724.10

681.35

1650.21

824.40

783.32

988.92

636.63

residuals

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

1990

1991

1992

1993

1994

1995

1996

HERF

0.21

0.33

0.70

0.86

*

0.66

**

0.89

*

1.00

(0.58)

(0.97)

(1.50)

(2.62)

(2.10)

(2.62)

(3.48)

NBANKS

0.009

*

0.007

*

0.01

*

0.008

*

0.01

*

0.01

*

0.01

(6.25)

(5.59)

(6.49)

(5.76)

(7.70)

(7.60)

(7.73)

COSPER

-3.55

-1.96

-33.06

*

-13.96

*

-29.02

*

-9.18

***

-31.19

(-0.47)

(-0.29)

(-3.91)

(-5.50)

(-6.80)

(-1.95)

(-7.81)

COSRAT

6.94

***

22.51

*

57.99

*

44.53

*

36.15

*

51.54

*

7.29

(1.86)

(6.77)

(12.31)

(12.70)

(10.25)

(13.51)

(1.80)

COSTANT

6.69

*

6.16

*

7.07

*

4.66

*

5.06

*

4.43

*

5.95

(23.72)

(19.81)

(16.04)

(27.47)

(21.11)

(16.32)

(21.38)

N. observat.

1002

1071

1203

1214

1236

1271

1240

R2

0.04

0.07

0.15

0.14

0.13

0.17

0.09

Sum squared

696.75

661.90

1594.06

802.36

747.29

945.70

607.21

residuals

38



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