... ],,(1+∈iixxx = 0, otherwise, (12) and where x is the value of the explanatory variable (the time distance to the merger, in our case). The values ix denote the “knots” of the spline, and the coefficients, ... scale and other efficiency gains and transfer these to the customers in the form of more beneficial interest rates. The most important assumption made by the proponents of the efficiency hypothesis ... on testing the validity of two hypotheses, the “efficiency hypothesis” and its opposite, the “structure-conduct-performance hypothesis”. The “efficiency hypothesis” states that the merged bank...