Working Paper: CEPR ID: DP6036
Authors: Evren R. S.; Tara Rice
Abstract: We examine whether ?imputed? interest rates obtained from bank financial statements are unbiased estimates of ?offered? interest rates that the same banks report in surveys. We find evidence of a statistically significant amount of bias. However, the statistical bias that we document does not appear to be economically significant. When used as dependent variables in regression analysis, imputed rates and offered rates lead to the same policy conclusions. Our work has important methodological implications for empirical research that examines the product market competition among depository institutions.
Keywords: Deposit rates; Imputed prices; Product market; Transaction prices
JEL Codes: G21; L11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| imputed interest rates (E43) | offered interest rates (E43) |
| winsorized/truncated imputed rates (C24) | offered interest rates (E43) |
| imputed interest rates (E43) | statistical bias in offered interest rates (E43) |
| adjusted imputed rates (C80) | same policy conclusions as offered rates (E43) |