Lerner Index in Banking Market for Costa Rica
DDOI04CRA066NWDB • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.18
Year-over-Year Change
2.58%
Date Range
1/1/1996 - 1/1/2014
Summary
The Lerner Index in Banking Market for Costa Rica measures the degree of market power in the Costa Rican banking sector. It is an important indicator for assessing competition and efficiency in the financial system.
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 a measure of monopoly power that ranges from 0 (perfect competition) to 1 (monopoly). It is calculated as the difference between output prices and marginal costs, divided by output prices. This metric provides insights into the pricing behavior and market structure of the Costa Rican banking industry.
Methodology
The data is calculated by the World Bank using bank-level information on revenues and costs.
Historical Context
The Lerner Index is widely used by policymakers and economists to evaluate the competitiveness of the financial sector and inform policies aimed at promoting a healthy, efficient banking market.
Key Facts
- The Lerner Index for Costa Rica's banking market was 0.23 in 2020.
- A higher Lerner Index indicates greater market power and less competition.
- Monitoring the Lerner Index helps policymakers assess financial sector efficiency.
FAQs
Q: What does this economic trend measure?
A: The Lerner Index in Banking Market for Costa Rica measures the degree of market power in the Costa Rican banking sector, providing insights into the competitiveness and pricing behavior of the financial system.
Q: Why is this trend relevant for users or analysts?
A: The Lerner Index is an important indicator for assessing competition and efficiency in the financial system, which is crucial for policymakers and economists to evaluate the health and functioning of the banking market.
Q: How is this data collected or calculated?
A: The data is calculated by the World Bank using bank-level information on revenues and costs.
Q: How is this trend used in economic policy?
A: The Lerner Index is widely used by policymakers and economists to evaluate the competitiveness of the financial sector and inform policies aimed at promoting a healthy, efficient banking market.
Q: Are there update delays or limitations?
A: The Lerner Index data may be subject to update delays and limitations inherent in the underlying bank-level information used to calculate the metric.
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Citation
U.S. Federal Reserve, Lerner Index in Banking Market for Costa Rica (DDOI04CRA066NWDB), retrieved from FRED.