Counterfactual analysis of bank mergers

Pedro Pita Barros, Diana Bonfim, Moshe Kim, Nuno C Martins

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)


We introduce a counterfactual analysis of banks mergers, combining the pre-merger equilibrium setting with post-merger environmental characteristics, while accounting for endogenously propagated changes in market structure. Using this procedure we are able to estimate the effects on loan flows and interest rates that would have been observed if the pre-merger equilibrium was not altered. Results are obtained for firms, households, and banks inside and outside the merging circles separately. We find that mergers increased firms' access to credit, but had an opposite effect on households and led to a widespread decrease in interest rates.
Original languageEnglish
Pages (from-to)361-91
JournalEmpirical Economics
Issue number1
Publication statusPublished - 1 Jan 2014


  • Banks
  • Mergers
  • Counterfactual
  • Competition


Dive into the research topics of 'Counterfactual analysis of bank mergers'. Together they form a unique fingerprint.

Cite this