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In this study, we examine how State aid policy in the European Union (EU) affects the level of economic growth. By applying several panel data econometric techniques, to a sample of 27 EU countries over the period 2007–2019, we investigate how state support and government interventions affect the level of economic growth in the EU member states. Based on the empirical findings, we document a positive impact of state aid programmes on fostering economic growth leaving significant room for the implementation of a new pan-European industrial policy. Lastly, we provide policy implications to government officials and policymakers on the effectiveness of the State Aid Modernization programme and the future of State aid control in the aftermath of the pandemic crisis. [ABSTRACT FROM AUTHOR]

The empirical analysis employs a static threshold model using a daily dataset over the six months from the first confirmed European COVID-19 case (25 January 2020). The results indicate that the investigated relationship is non-monotonic ('U-shaped') depending on the intensity of the lockdown measures proxied by the Coronavirus Government Response Tracker Index (CGR). [ABSTRACT FROM AUTHOR]

Gasoline retail prices show sometimes wild, asymmetric fluctuations over time. We explore the impact of spatial dependence on gasoline retail price formation by using for the first time an asymmetric spatial error correction model (ASpECM). We find evidence that the generally assumed symmetric price pattern is fully reversed when we account for spatial spillover effects, indicating that retail prices adjust more rapidly in an upward than in a downward direction. This finding suggests that empirical studies that ignore the role of spatial dependence and local competition may miss an important element of the nature of the gasoline price adjustment mechanism. [ABSTRACT FROM AUTHOR]

Remedies form an essential tool of any enforcement action and need to be devised with great caution from National Competition Authorities (NCAs). If the remedy is ineffective, the enforcement action does not reach the desired objective and resources will have been wasted. If the remedy is disproportionate, the decision is put at risk in a possible subsequent appeal. Remedies either behavioural or structural imposed by competition authorities seek to eliminate unilateral or/and coordinated effects as a result of the merger and restore competition on the relevant market(s) to the status quo ante. Moreover, remedy packages have typically included extensive structural divestments to remove competition concerns. The scope of this paper is to examine various issues relating to the imposition of remedies in merger cases focusing on the gas and electricity sectors (i.e. commodity and capacity release programmes, customer release schemes, network related remedies). This study relies on the energy sector with a view to developing general principles for imposing effective remedies in other sectors as well. Given the nature of competition in energy markets, particularly effective remedies are those that involve gas release programmes, the sale of price-setting generation plants, network assets, and controlling stakes in merging parties' competitors. [ABSTRACT FROM AUTHOR]

A fundamental step in the assessment of antitrust law cases examined by National Competition Authorities (NCAs) is to detect and penalize anticompetitive behaviour (e.g. cartel agreements, secret agreements and tacit agreements). However, this is not an easy task for NCAs since the boundaries between non-explicit (tacit) collusion and parallel behaviour in oligopolistic markets under Bertrand competition are often vague. The scope of this paper is twofold. On the one hand, it aims to cast light on the role of economic analysis in tacit collusion cases by introducing the main quantitative techniques used in antitrust policy. In this way, it contributes to the literature by highlighting the role of economic analysis blended by the use of modern econometric techniques in unveiling the tacit collusion mechanism. On the other hand, it delves into discussions of Greek competition law matters by analysing in depth a tacit collusion case from the petroleum industry. [ABSTRACT FROM AUTHOR]

This paper investigates the gasoline price adjustment to changes in the input cost price for a panel of 48 US states using a monthly data set covering the period 1994–2011. We build, for the first time, a non-linear threshold panel vector-error-correction model (PVECM) and propose efficient Markov chain Monte Carlo (MCMC) Bayesian techniques. Our findings indicate that states with high margin experience a slower adjustment and a more asymmetric response to input price cost shocks. Our results are robust to potential structural breaks in the threshold parameter, which is important as market conditions change over time and are very sensitive to production/consumption constraints. Lastly, we attribute fluctuations in the gasoline prices to input cost shocks, arguing that the peak responses occurring one month after the shock are short-lived. [ABSTRACT FROM AUTHOR]

The goal of this article is to empirically assess the relationship between competition and efficiency in the banking sector of Middle East and North African (MENA) countries spanning the period 1997–2011. To measure the level of competition, the article estimates the non-structural indicator known as the H-statistic, while the level of bank efficiency is estimated through the nonparametric methodology of the Data Envelopment Analysis (DEA) and the Bootstrap Data Envelopment Analysis (BDEA), respectively. The empirical results are robust under six econometric methodologies, providing sufficient evidence for the presence of a one-way (negative) Granger causality, running from efficiency to competition. The empirical findings lead to the rejection of the ‘Efficient Structure Hypothesis’, implying that increases in competition do not precede increases in cost efficiency. [ABSTRACT FROM AUTHOR]

During the last decade, the importance of a thorough and coherent ex-post merger review by competition authorities and courts has been increasing. Although it is widely acknowledged that addressing the competition concerns, which stem from consummated mergers, is a costly and time-consuming process, and that remedies (e.g. either structural or behavioural), when adopted, are often imperfect at best, sophisticated quantitative techniques are now available for competition agencies, attorneys and courts to help them assess the impact of a merger and the efficacy of related enforcement decisions, thus leading to improved decision-making. This article aims to cast light on the role of economic analysis in the merger case decisions. For this reason, I focus on the main quantitative techniques used in merger analysis in the Greek jurisdiction. In this way, I try to offer some suggestions to other competition agencies derived from the Hellenic Competition Commission experiences in assessing selected merger cases. Finally, I also delve into discussions of Greek competition law matters, as an example of emerging merger regime model, with respect to certain aspects of the European Union Merger Regulation. [ABSTRACT FROM AUTHOR]

The goal of this study was to assess the intensity of competition in the OECD manufacturing industry by using the Panzar and Rosse index over the period 1970–2011. For this purpose, we use the fully modified OLS method and second-generation unit root analysis to investigate the level of competition across two-digit manufacturing sectors. The results are robust and consistent with similar studies, leading to the rejection of perfect collusion and perfect competition, while providing evidence in favour of monopolistic competition. Similarly to other empirical studies, H-statistics are shown to be heterogeneous across manufacturing sectors. We argue that more concentrated sectors such as food and beverages, motor vehicles and furniture have low levels of H-statistic being thus less competitive than other industries (i.e. computers transportation equipment, printing and chemicals), where the H-statistic is closer to unity. Lastly, our analysis will be a useful policy tool to achieve structural micro-economic goals. [ABSTRACT FROM AUTHOR]

This paper investigates the level of market power in the Greek manufacturing and services industry over the period 1970–2007. Based on the Roeger methodology, we investigate the competitive conditions in the examined industries at a disaggregated level (two and three digit ISIC codes). The empirical results indicate that the Greek manufacturing and services industries operate in non-competitive conditions. Moreover, average mark-up ratios are heterogeneous across sectors, with manufacturing having higher mark ups on average than services. In contrast to other related studies, we provide sufficient evidence about the movements of mark-up ratios over time. According to our findings, the mark-up ratios in the manufacturing sectors are, on average, higher in the post European Union (EU) accession period (1982–1992), as a result of the merger wave in the manufacturing industry. However, this upward trend stopped within the period (1993–2007), and the relevant ratios have decreased substantially. The econometric results are quite robust when the Two Stage Least Squares (2SLS) and the bootstrap method are applied. Lastly, the results of our analysis have a number of interesting implications for policy makers and government officials in light of the recent financial crisis that hit Greece. [ABSTRACT FROM AUTHOR]

The goal of this article is to empirically assess the level of competition in the European Monetary Union (EMU) banking sector. The empirical findings provide sufficient evidence in favour of a monopolistic competition regime. The industry structure of the banking sector seems to have been left unaltered after the adoption of the euro currency and the recent financial crisis with the estimated values of theH-statistic range between zero and unity. [ABSTRACT FROM PUBLISHER]

This article tries to cast light on the main determinants of the merger waves reported in the banking sector. For this reason, we investigate the recently developed merger wave theories by estimating an empirical model covering the US for the period 1987 to 2013. The empirical results, based on four alternative methodologies, are robust, claiming that merger waves in the banking sector are driven by stock market booms, a finding that is consistent with the behavioural hypothesis about the causes of merger waves. [ABSTRACT FROM AUTHOR]

The aim of this study is to estimate industry markups for 2-digit Greek manufacturing and services industries over the period 1970 to 2007. The empirical model estimates the markups following the Roeger (1995) methodology, separately for the two industries by using two different panel data econometric techniques. The results are robust revealing that Greek manufacturing and services industry operate in noncompetitive conditions. The findings also support the view that markup ratios vary significantly between the two industries, with services having higher markups than manufacturing. [ABSTRACT FROM AUTHOR]

The article presents information on the effect of the law enforcement on the merger agreement and the cartel agreement with respect to the international market and the stock value of the merging firms. The merger affects the stock value of the competitor and also the infrequent trading phenomenon of the companies. The requirement of the simple return approach is for overcoming the infrequent trading phenomenon. Information on the role of the competition law of Greece for the purpose of monitoring the mergers and acquisitions and the enforcement of law in Greece is also presented.

The article presents information on the application of competition rules and the need of economic analysis in decisions related to the cases of mergers with reference to the U.S. and the European Union laws. A focus is on the quantitative techniques used for analyzing merging in these jurisdictions by the competition agencies based on the experiences for the Hellenic Competition Commission (HCC) of Greece. The models studied include Merger Simulation Models (MSMs) and Event Study Methodology (ESM). Several case laws related to this issue are also considered.