Journal article
Some Evidence on the Impact of Quasi-Fixed Inputs on Bank Scale Economy Estimates
Economic review (Atlanta, Ga.), Vol.76(3), pp.12-20
05/01/1991
Abstract
Studies of bank production and costs have increased understanding about the production process in financial institutions and influenced public opinion about banking consolidation. However, the robustness of these studies' conclusions has not been determined with models that account for the quasi-fixed nature of some bank inputs. An analysis was conducted comparing bank production function estimates using variable inputs with those that allow some inputs to change only after a time lag. The data were taken primarily from the Federal Reserve end-of-year Reports of Condition and Income filed by banks for the period 1984-1987. It is concluded that including quasi-fixed inputs in specifications enhances the statistical accuracy of bank cost function analysis but does not substantially alter policy conclusions that arose from earlier studies. As the banking industry evolves, empirical enhancements may help policymakers target prescriptions more effectively.
Details
- Title: Subtitle
- Some Evidence on the Impact of Quasi-Fixed Inputs on Bank Scale Economy Estimates
- Creators
- William HunterStephen Timme
- Resource Type
- Journal article
- Publication Details
- Economic review (Atlanta, Ga.), Vol.76(3), pp.12-20
- ISSN
- 0732-1813
- eISSN
- 2163-3258
- Publisher
- Federal Reserve Bank of Atlanta
- Language
- English
- Date published
- 05/01/1991
- Academic Unit
- Finance
- Record Identifier
- 9984963238402771
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