Within the maximum entropy formulation for solving pure ill-posed problems, an aggregated data set of the U.S. banking industry is analyzed. Under this formulation, technological and behavioral assumptions are not specified a priori, but are inferred from the empirical estimation procedure. The equilibrium characteristics of the industry together with the effects of different policies, economic measures, and changes in market conditions are investigated through experiments performed on the data. A main result shows that the industry is becoming more competitive.
ASJC Scopus subject areas
- Economics and Econometrics