Geographical Integration and the Retail CD-Pricing Decisions of Large Depository Institutions
研究1983-1988年美国六大城市大型存款机构的六个月零售存单利率，发现城市间利率存在长期均衡关系，且随时间推移城市间关联增多，表明市场正走向整合。
This paper focuses on the six-month retail certificate of deposit (CD) rates of large depository institutions in six major cities during 1983-1988 to test the integration of their retail CD markets. Using Granger's (1986) concept of co-integration, we find a long-run equilibrium relationship between the city CD-rate offers and the six-month Treasury bill rate. After filtering out this relationship, a vector autoregressive model is employed with Granger (1969) causality tests to determine the significance of intercity rate dependencies. Our results indicate an increasing number of intercity relations over time, consistent with an emerging integrated market. Since our sample represents a subset of bank CDs for the largest firms operating in six of the nation's largest cities, the results should not be generalized to other smaller bank markets, CD maturities, or bank products. The periods examined are also close together in time, which could affect the robustness of the results.