Dependent variable and market power measure

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pukka200
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Joined: Mon Apr 10, 2017 2:01 am

Dependent variable and market power measure

Postby pukka200 » Tue Apr 11, 2017 4:49 am

In a journal I have read called 'Bank competition and financial stability' Allen Berger, I have seen how they have the dependent variable for example being the Z-index and then have multiple market power measures such as the Lerner index and test these on a number of variables such as loans to assets, and get different results because of the different market power measures. Is this possible to do in EViews as I'm relatively new to using it and only see the option of having the dependent variable and not sure if I can set a market power measure.

So for example I would have the dependent variable as Z-score and then would test this on all of my other variables using 2SLS, but from reading journals and seeing their tables it seems as if it is possible to use the market power measure separately to generate different results on the other variables. If so how?

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