3. Producción
Browse
4 results
Search Results
- Some of the metrics are blocked by yourconsent settings
Item type:Publication, Determinants of Market Power in the Peruvian Regulated Microfinance Sector(Springer, 2020-12-01)The objective of this study is to analyze the evolution and determinants of market power in Peru’s regulated microfinance sector during the period of January 2003 to June 2016. We estimate both a conventional Lerner index (LICON) and an efficiency-adjusted Lerner index (LIADJ) using information from a wide panel of microfinance institutions (MFIs), thus finding that the LIADJ is significantly greater than the LICON. This result confirms that not considering MFIs’ inefficiency leads to an underestimation of their market power. Both indices decreased until 2014, which indicates that regulated MFIs’ market power decreased significantly for more than a decade. Beginning in 2015, market power significantly grew; the largest entities as well as those with the highest efficiency have greater market power. This last result evidences the fulfillment of the efficient structure (ES) hypothesis. In addition, a less elastic demand for microcredit, a lower default risk, as well as the processes of mergers, takeovers, and changes in the business structure of some MFIs, increase market power. Finally, the MFIs that operate in localized areas exhibit greater market power. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Evolution of monetary policy in Peru: an empirical application using a mixture innovation TVP-VAR-SV model(Oxford University Press, 2021-12-15)This article discusses the evolution of monetary policy (MP) in Peru in 1996Q1–2019Q4 using a mixture innovation time-varying parameter vector autoregressive (VAR) model with stochastic volatility (TVP-VAR-SV) as proposed by Koop, Leon-Gonzales and Strachan. The main empirical results are: (i) the VAR coefficients and volatilities change more gradually than the contemporaneous coefficients over time; (ii) the volatility of MP shocks was higher under the pre-Inflation Targeting (IT) regime; (iii) a surprise increase in the interest rate produces gross domestic product (GDP) growth falls and reduces inflation in the long run; (iv) the interest rate reacts more quickly to aggregate supply shocks than to aggregate demand shocks; (v) MP shocks explain a high percentage of domestic variables behavior under the pre-IT regime but their contribution decreases under the IT regime. Overall, these results show that MP has contributed in Peru to lower macroeconomic volatility by (i) reducing average long-term inflation, (ii) increasing the response of GDP growth rate to interest rate, and (iii) by becoming more predictable. (JEL codes: C11, C32, and E52). - Some of the metrics are blocked by yourconsent settings
Item type:Publication, Market power, social welfare, and efficiency in the Peruvian microfinance(Springer Science and Business Media Deutschland GmbH, 2024-04-01)This study quantifies the social welfare loss caused by market power in Peru’s regulated microfinance industry and analyzes its effect on microfinance institutions’ (MFIs) efficiency from 2003 to 2019. We estimate the efficiency-adjusted Lerner index as a measure of market power and obtain efficiency scores via cost and profit stochastic frontiers estimation using data from a wide panel of MFIs. Additionally, to analyze the effect of market power on the MFI’s efficiency, we estimate a fixed effects model with instrumental variables to correct the endogeneity problem. The results show that the welfare loss due to market power in Peru’s regulated microfinance industry has increased from 0.12% of GDP in 2003 to 0.27% in 2019. It is also found that market power positively affects Peruvian MFIs’ efficiency. Therefore, reducing market power leads to a welfare gain by lowering the social welfare loss (Harberger’s triangle) and a welfare loss due to decreased efficiency in MFIs. However, we find that reducing market power leads to a positive net effect on social welfare due to greater welfare gain than loss. - Some of the metrics are blocked by yourconsent settings
Item type:Publication, The Nonlinearity of the Relationship Between Competition and the Dual Performance of Regulated Microfinance Institutions in Peru(Springer Nature, 2023-07-01)The objective of this study is to determine whether a nonlinear relationship exists between competition and outreach, as well as, between competition and financial sustainability of Peruvian regulated microfinance institutions (MFIs) from 2003 to 2019. We consider three different competition measures reflecting market power, the geographical presence of MFIs, and market concentration. Our findings are as follows: Market concentration does not affect financial sustainability and outreach, whereas market power has a nonlinear U-shaped relationship with financial sustainability and depth of outreach and a negative linear relationship with outreach breadth. Furthermore, the geographic presence of MFIs has a nonlinear U-shaped relationship with financial sustainability and depth of outreach, while it has a nonlinear inverted U-shaped relationship with outreach breadth. These findings reveal differentiated effects of competition on the performance of MFIs that depend on the level of their market power and their geographic presence in the market. Given the high market power and low geographic presence, on average, of Peruvian MFIs, we find that competition negatively affects their financial sustainability and positively affects their outreach. This study brings to the debate on the effects of competition on MFI performance a new interpretation of these effects based on empirical evidence that reconciles previous empirical results.