In this article, authors William R. Emmons and Frank A. Schmid analyze competition among banks and between banks and credit unions using a dynamic model of spatial competition.

The model allows for the co-existence of (for-profit) banks and (not-for-profit) credit unions. Using annual county-level data on banking market concentration and credit-union participation rates for the period 1989-96, Mr. Emmons and Mr. Schmid said they found empirical evidence of two-way competitive interactions between banks and credit unions.

The full text of the article, Banks Versus Credit Unions: Dynamic Competition in Local Markets, can be found at the St. Louis Fed's Web site. The article is in PDF format and requires Acrobat Reader software from Adobe.

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