Journal article
Core deposits and physical capital: A reexamination of bank scale economies and efficiency with quasi-fixed inputs
Journal of money, credit and banking, Vol.27(1), pp.165-185
02/01/1995
DOI: 10.2307/2077857
Abstract
A study compares the empirical results obtained from estimating 3 different specifications of a bank's cost function: 1. the standard or total-cost function approach, 2. the variable-cost approach, and 3. a variant of the total-cost function where certain types of deposits are treated as outputs. The analyses are carried out for the period 1984-1990 using a sample of 317 US commercial banks with total assets of at least $1 billion as of the end of 1990. While the ray scale economy estimates appeared to be economically different for banks with up to $10 billion in assets, the critical assumption seemed to be whether deposits are treated as inputs or outputs. For the largest banks, those with assets in excess of $10 billion, the ray scale economy estimates derived from the different specifications were generally found not to be economically different.
Details
- Title: Subtitle
- Core deposits and physical capital: A reexamination of bank scale economies and efficiency with quasi-fixed inputs
- Creators
- William HunterStephen Timme
- Resource Type
- Journal article
- Publication Details
- Journal of money, credit and banking, Vol.27(1), pp.165-185
- DOI
- 10.2307/2077857
- ISSN
- 0022-2879
- eISSN
- 1538-4616
- Publisher
- Ohio State University Press
- Language
- English
- Date published
- 02/01/1995
- Academic Unit
- Finance
- Record Identifier
- 9984963235402771
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