Skip to main content

Boone Indicator in Banking Market for Japan

2013: 0.00440 Index  
Annual, Not Seasonally Adjusted, DDOI05JPA156NWDB, Updated: 2015-10-02 1:11 PM CDT
1yr | 5yr | 10yr | Max

A measure of degree of competition based on profit-efficiency in the banking market. It is calculated as the elasticity of profits to marginal costs. An increase in the Boone indicator implies a deterioration of the competitive conduct of financial intermediaries.

A measure of degree of competition, calculated as the elasticity of profits to marginal costs. To obtain the elasticity, the log of profits (measured by return on assets) is regressed on the log of marginal costs. The estimated coefficient (computed from the first derivative of a trans-log cost function) is the elasticity. The rationale behind the indicator is that higher profits are achieved by more-efficient banks. Hence, the more negative the Boone indicator, the higher the degree of competition is because the effect of reallocation is stronger. Estimations of the Boone indicator in this database follow the methodology used by Schaeck and Cihák 2010 with a modification to use marginal costs instead of average costs. Regional estimates of the Boone indicator pool the bank data by regions (for more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith, and Harrison 2005). (Calculated from underlying bank-by-bank data from Bankscope)

Source Code: GFDD.OI.05

Source: World Bank

Release: Global Financial Development

Growth Rate Calculations | US recession dates

Restore defaults | Save settings | Apply saved settings
Recession bars:
Log scale:

Y-Axis Position:
(a) Boone Indicator in Banking Market for Japan, Index, Not Seasonally Adjusted (DDOI05JPA156NWDB)
Integer Period Range:

copy to all
Create your own data transformation: [+]
Need help? [+]

Use a formula to modify and combine data series into a single line. For example, invert an exchange rate a by using formula 1/a, or calculate the spread between 2 interest rates a and b by using formula a - b.

Use the assigned data series variables above (e.g. a, b, ...) together with operators {+, -, *, /, ^}, braces {(,)}, and constants {e.g. 2, 1.5} to create your own formula {e.g. 1/a, a-b, (a+b)/2, (a/(a+b+c))*100}. The default formula 'a' displays only the first data series added to this line. You may also add data series to this line before entering a formula.

will be applied to formula result

Create segments for min, max, and average values: [+]

Suggested Citation
World Bank, Boone Indicator in Banking Market for Japan [DDOI05JPA156NWDB], retrieved from FRED, Federal Reserve Bank of St. Louis, February 11, 2016.

Retrieving data.
Graph updated.

Subscribe to our newsletter

Follow us

Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo
Back to Top
Click to send us feedback