Abstract
A binomial probit model is used to estimate the Board of Governors' commercial bank merger policy during the pre-deregulation era from 1963 to 1980. The Board's merger policy is shown to be consistent with a ‘Williamsonian’ efficiencies policy. This contrasts with the merger antitrust environment of the time in which merger-induced efficiencies were not considered. The results also suggest that the Board was influenced by the empirical cost studies of the time.
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DeYoung, R.E. The efficiencies defense and commercial bank merger regulation. Rev Ind Organ 6, 269–282 (1991). https://doi.org/10.1007/BF00378126
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DOI: https://doi.org/10.1007/BF00378126