Archive for September 11th, 2019

Switching costs in the Finnish retail deposit market

September 11, 2019

Tuomas Takalo of Bank of Finland in this paper:

I calibrate switching cost for the Finnish retail deposit market by using the approach developed by Oz Shy (2002). It turns out that switching costs faced by deposit customers of the main banks are high, ranging from 200 euros to nearly 1,400 euros. Over the past 20 years, switching costs have increased by roughly 50% in real terms, but in relation to average account balance, switching costs have not essentially changed. I conjecture that differences in the switching costs among the Finnish banks might be explained by differences in their loyalty programs.

Switching costs look really high for Indian depositors too and need to be worked out…

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Jihadi attacks, media, and local anti-Muslim hate crime

September 11, 2019

Ria Ivandic, Tom Kirchmaier and Stephen Machin in this piece reflect on the role of media in hate crime:

The attacks on mosques in Oslo and Christchurch have again called attention to the rise in anti-Muslim sentiment that is increasingly becoming normalised in media and on social platforms. This column studies the role the media plays in local increases in Islamophobic hate crime following jihadi terror attacks. Data from Greater Manchester Police reveal a spike in Islamophobic hate crime and incidents following ten international jihadi attacks. Other jihadi attacks that were much less prominent in the UK media, but no less lethal, did not generate the same spikes, suggesting that anti-Muslim hate crime is magnified by media coverage. 

RBI Committee on the Development of Housing Finance Securitisation Market: Review

September 11, 2019

RBI released a new report on Development of Housing Finance Securitisation Market.

I review the findings of the report in my new article in Moneycontrol.


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