Lerner Index in Banking Market for Australia
DDOI04AUA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.17
Year-over-Year Change
1.98%
Date Range
1/1/1996 - 1/1/2010
Summary
The Lerner Index in Banking Market for Australia measures the market power of banks in the Australian banking sector. This metric is important for analyzing the competitive dynamics and efficiency of the banking industry.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The Lerner Index is an economic measure of market power that ranges from 0 (perfect competition) to 1 (monopoly). It calculates the degree to which banks can set prices above marginal cost, providing insight into the level of competition in the banking market.
Methodology
The Lerner Index is calculated as the difference between output prices and marginal costs, divided by output prices.
Historical Context
Policymakers and analysts use the Lerner Index to evaluate the competitiveness and potential for market distortions in the Australian banking sector.
Key Facts
- The Lerner Index ranges from 0 to 1, with 0 indicating perfect competition.
- Higher Lerner Index values suggest greater market power and less competition.
- The Lerner Index is an important metric for assessing banking sector efficiency.
FAQs
Q: What does this economic trend measure?
A: The Lerner Index in Banking Market for Australia measures the degree of market power held by banks in the Australian banking sector.
Q: Why is this trend relevant for users or analysts?
A: The Lerner Index provides insight into the level of competition and potential for market distortions in the Australian banking industry, which is crucial for policymakers and market analysts.
Q: How is this data collected or calculated?
A: The Lerner Index is calculated as the difference between output prices and marginal costs, divided by output prices.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use the Lerner Index to evaluate the competitiveness and efficiency of the Australian banking sector, which informs regulatory and market oversight decisions.
Q: Are there update delays or limitations?
A: The Lerner Index data may be subject to update delays or limitations due to the complexities of measuring marginal costs and output prices in the banking industry.
Related Trends
Sales: Retail Trade: Total Retail Trade: Value for Australia
AUSSARTMDSMEI
Real Broad Effective Exchange Rate for Australia
RBAUBIS
External Trade: Volume of Imports of Goods and Services for Australia
AUSTMRPCPPPT
Amount Outstanding of Domestic Money Market instruments in Financial Corporations Sector, Short-Term at Original Maturity, Residence of Issuer in Australia
DMMISTRIAOFCAU
Infra-Annual Labor Statistics: Unemployment Rate Total: From 55 to 64 Years for Australia
LRUN55TTAUM156S
Infra-Annual Labor Statistics: Persons Outside the Labor Force Male: 15 Years or over for Australia
LFINTTMAAUA647N
Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Australia (DDOI04AUA066NWDB), retrieved from FRED.