COMMERCIAL BANKS' RESPONSE TO COSTLY DEPOSITS IN A DEREGULATED ENVIRONMENT

The study examines balance sheet changes at Texas commercial banks following the 1980 bank deregulation. A comparison of selected deposit and asset variables for 1978 (pre-deregulation) and 1987 (post- deregulation) reveals a rapid increase in costly deposits and a decline in the proportion of loans in general, and agricultural loans in particular, relative to total bank assets. Although a weak Texas economy during this time period contributed to the observed asset reallocation, banks were also responding to the increased deposit costs and interest rate volatility following deregulation. This conclusion is consistent with previous findings cited in the study.Commercial banks, Agricultural loans, Bank deregulation, Financial Economics,

Japan's Big Bang and the Transformation of Financial Markets

A first step in the 'big bang' markets was the deregulation of the foreign exchange market on April 1, 1998. This paper examines how the bid-ask spread and conditional volatility in the yen/dollar foreign exchange market changed around the time of the deregulation. Intra-day data are analyzed with the following results: (1) Holding constant the effects of volume and volatility, the deregulation was associated with a convergence of Japanese quoted spreads toward those of other banks. (2) Modeling the persistence in volatility reveals that deregulation lowered conditional volatility.

DEAとInverted DEAのノンパラメトリック検定を用いたわが国の電力各社の生産性に対する電力自由化の効果検証

This paper is verifying of the effects on the electric power deregulation in Japan to the productivity of each electric power company by using the parametric and nonparametric test of the DEA (Data Envelopment Analysis) and the Inverted DEA (Inverted Data Envelopment Analysis). In this paper, the first step of the evaluation of the relative efficiencies and inefficiencies of each electric power company for a total of 21 years before and after electric power deregulation. The second step of the verification of the effects on the electric power deregulation in Japan to the productivity of each electric power company by using the parametric and nonparametric test of the DEA and the Inverted DEA are clarified. The verification of the effects on the electric power deregulation of the productivity of each electric power company was identified statistically

A time series analysis of wages in deregulated industries: A study of motor carriage and rail

Using time series techniques, we contrast the impact of deregulation in trucking and rail labor markets. During regulation both labor markets were characterized by wages considerab y higher than manufacturing wages. In fact, trucking and rail wages had a stable, deterministic relationship prior to deregulation. After deregulation, however, the mean trucking wages fell considerably, approaching manufacturing wages, while rail wages remained relatively constant. We also find that deregulation’s negative impact on trucking wages was nondiscrete and occurred primarily between 1980 and 1984.deregulation, trucking, rail

The employment effects of labor and product markets deregulations and their implications for structural reform

This study explores the effects of market deregulation on employment growth. Empirical analysis of an OECD country panel (1990-2004) suggests that lower levels of product and labor market regulation foster employment growth, including through sizable interaction effects. A theoretical framework is developed for evaluating deregulation strategies in the presence of reform costs. Optimal deregulation takes various forms depending on the deregulation costs and the strength of reform interactions. Compared to the first best, decentralized decision-making can lead to excessive or insufficient deregulation. Securing the first best requires coordinating deregulation activities across sectors and overcoming the partial perspective of decision makers. --Product market regulation,labor market regulation,employment growth,policy coordination,sequencing

The Employment Effects of Labor and Product Markets Deregulation and their Implications for Structural Reform

This study explores the effects of labor and product market deregulation on employment growth. Our empirical results, based on an OECD country panel from 1990-2004, suggest that lower levels of product and labor market regulation foster employment growth, including through sizable interaction effects. Based on these findings, the paper develops a theoretical framework for evaluating deregulation strategies in the presence of reform costs. Optimal deregulation takes various forms depending on the deregulation costs and the strength of reform interactions. Compared to the first best, decentralized decision-making based on a partial market-by-market perspective can lead to excessive or insufficient regulation, depending on the design of the decision process. Securing the first best requires not only coordinating deregulation activities across sectors but also overcoming the partial perspective of decision makers.product market regulation, labor market regulation, employment growth, policy coordination, sequencing

Labor Market Outcomes of Deregulation in Telecommunications Services

[Excerpt] This paper examines the labor market outcomes of deregulation in the telecommunications industry, focusing specifically on changes in union density, real wages, wage inequality, and employment levels. Deregulation of telecommunications long distance and equipment markets began in 1984 with the dismantling of the highly unionized Bell System into AT&T (the long distance and equipment provider) and seven Regional Bell Operating Companies (RBOCs, the local service providers). Deregulation of local service has proceeded fitfully: while Congress intended to increase local competition with the passage of the 1996 Telecommunications Act, the RBOCs continue largely as monopoly providers. Despite only partial deregulation, however, former Bell System companies have fundamentally restructured their operations to compete with a growing number of new nonunion entrants; and they have focused heavily on cutting labor costs. Labor-management relations, cooperative under the prior regulated regime, have deteriorated substantially; and unions have had minimal influence on managerial strategies in the deregulated era (Keefe and Batt 1997). In this paper, we focus on three questions. First, what are the overall trends in unionization, real wages, and wage inequality since deregulation began? Second, what is the effect of deunionization on wage inequality in the industry as a whole and within occupational groups? Third, to what extent has inequality increased within both the union and nonunion segments of the industry? To answer these questions, we analyze the Current Population Survey (CPS) annual earnings files (1983 to 1996). We interpret these data in the context of field research on managerial and union strategies in response to deregulation

Deregulation of Business

What determines the enforcement of deregulation reform of business activities? What are the outcomes of deregulation? We address these questions using an episode of a drastic reform in Russia between 2001 and 2004 which liberalized registration, licensing, and inspections. Based on the analysis of micro-level panel data on regulatory burden, we find that: 1) On average, the reform reduced the administrative costs of firms; but, the progress of reform had a substantial geographical variation. 2) The enforcement of deregulation reform was better in regions with a transparent government, low corruption, better access of the public to independent media sources, a powerful industrial lobby, and stronger fiscal autonomy. 3) Using the exogenous variation in regulation generated by the interaction of reform and its institutional determinants, we find a substantial positive effect of deregulation on net entry and small business employment and no effect on pollution and public health. The results support public choice theory of the nature of regulation and are inconsistent with the predictions of public interest theory.

Deposit deregulation

Depository Institutions Deregulation and Monetary Control Act of 1980 ; Depository Institutions Deregulation Committee ; Bank deposits