Which variables can we use to test the quiet life hypothesis QLH and efficient structure hypothesis ESH? Present a suitable econometric model and identify expected relationships. Your Group works for a leading consulting company who are advising the Government on how best to improve competition in the banking market. You have been tasked with preparing a briefing document for your CEO to present to Government and central banks officials.
Which variables can we use to test the quiet life hypothesis QLH and efficient structure hypothesis ESH? Present a suitable econometric model and identify expected relationships.