Table 1 Assessment of underlying hypothesis (overlapping Bank size thresholds)

 Constant

−17.380 ^c (0.000)

9.275 (0.104)

−15.63 ^c (0.005)

13.163 (0.106)

−16.10 ^c (0.001)

13.090 (0.053)

−16.501 ^c (0.000)

11.688 ^a (0.060)

 Size

7.359 ^b (0.019)

−1.841 (0.189)

32.865 ^c (0.000)

−6.581 (0.569)

21.152 ^c (0.000)

−4.119 (0.386)

15.441 ^c (0.000)

−3.222 (0.468)

 GDPpcg

−0.029 (0.550)

− 0.018 (0.646)

− 0.141 ^b (0.045)

0.032 (0.651)

− 0.150 ^b (0.025)

− 0.0342 (0.548)

− 0.137 ^b (0.035)

−0.040 (0.470)

 Inflation

0.002 (0.713)

−0.001 (0.843)

0.007 (0.401)

0.006 (0.291)

0.0003 (0.965)

−0.002 (0.788)

0.0006 (0.928)

−0.002 (0.793)

 Pop. density

0.281 ^c (0.000)

0.032 (0.557)

0.257 ^c (0.000)

−0.046 (0.610)

0.276 ^c (0.000)

−0.012 (0.865)

0.282 ^c (0.000)

0.008 (0.904)

 Loan/Assets

–

−4.527 (0.154)

–

−4.218 (0.311)

–

−3.979 (0.234)

–

−4.759 (0.155)

 Deposit/Assets

–

−2.704 (0.532)

–

−2.637 (0.648

–

− 2.805 (0.545)

–

− 2.499 (0.577)

 Bank Branches

–

0.121 (0.383)

–

0.504 (0.193)

–

0.128 (0.466)

–

0.104 (0.517)

 R²(within)

0.144

0.021

0.221

0.027

0.189

0.019

0.173

0.020

 Fisher

10.24 ^c

0.92

33.32 ^c

6.85 ^c

17.95 ^c

0.78

15.53 ^c

0.94

 sigma_u

32.472

6.853

30.455

7.968

32.830

6.100

32.697

5.768

 sigma_e

4.050

3.197

4.329

3.638

4.117

3.377

4.069

3.345

 rho

0.984

0.821

0.980

0.827

0.984

0.765

0.984

0.748

 Banks

146

122

109

92

127

107

130

110

 Observations

737

468

514

327

610

402

641

419

 Constant

−12.601 ^a (0.062)

8.748 (0.151)

−13.481 (0.128)

14.150 ^a (0.076)

−11.342 (0.151)

12.759 ^a (0.062)

−10.797 (0.152)

11.802 ^a (0.065)

 IVSize

8.392 ^b (0.024)

−0.249 (0.900)

5.380 ^a (0.085)

−4.429 (0.246)

6.483 ^c (0.003)

2.444 (0.122)

5.358 ^c (0.007)

0.103 (0.962)

 GDPpcg

−0.022 (0.659)

− 0.016 (0.692)

− 0.158 ^a (0.063)

0.0210 (0.767)

− 0.143 ^b (0.043)

− 0.042 (0.471)

−0.137 ^b (0.043)

− 0.047 (0.410)

 Inflation

0.0005 (0.942)

−0.001 (0.844)

0.002 (0.808)

0.006 (0.284)

−0.001 (0.806)

−0.002 (0.737)

− 0.001 ^b (0.807)

−0.002 (0.764)

 Pop. density

0.215 ^c (0.006)

0.033 (0.564)

0.248 ^b (0.018)

−0.056 (0.513)

0.230 ^b (0.017)

−0.015 (0.830)

0.224 ^b (0.014)

0.002 (0.963)

 Loan/Assets

–

−4.301 (0.168)

–

−4.096 (0.382)

–

−4.347 (0.200)

–

− 4.822 (0.147)

 Deposit/Assets

–

−2.886 (0.510)

–

−2.658 (0.652)

–

−3.231 (0.489)

–

−2.745 (0.545)

 Bank Branches

–

0.129 (0.352)

–

0.488 (0.218

–

0.1741 (0.312)

–

0.122 (0.433)

 R²(within)

0.076

0.018

0.071

0.028

0.070

0.019

0.065

0.018

 Fisher

2.95 ^b

0.88

2.99 ^b

7.70 ^c

4.12 ^c

0.94

3.62 ^c

0.87

 sigma_u

25.193

6.949

30.556

8.664

28.384

6.177

27.212

5.691

 sigma_e

4.013

3.219

4.563

3.667

4.214

3.399

4.133

3.368

 rho

0.975

0.823

0.978

0.848

0.978

0.767

0.977

0.740

 Banks

144

122

107

92

125

107

128

110

 Observations

658

464

449

323

542

398

571

415