Journal article
Technical Change, Organizational Form, and the Structure of Bank Production
Journal of money, credit and banking, Vol.18(2), pp.152-166
05/01/1986
DOI: 10.2307/1992199
Abstract
Previously unavailable empirical evidence on banks' technological characteristics and the influence that regulatory-determined factors, such as organizational form and branching structure, have on these characteristics is presented. The nature of technical change in the banking industry is explicitly examined, and its impact on bank scale economies is investigated. A model based on the translog cost function is employed. The empirical results indicate that significant technical change has taken place among the banks in the study sample. This change is found to be neutral in the Hicksian sense and to exhibit positive scale bias. Thus, a large scale of operation is essential for a bank to exploit available operating scale economies fully. A bank's cost-minimizing mix of inputs is found to be significantly related to both technical change and the scale of output. Large banks have apparently used their operating efficiencies as a way of remaining competitive in deposit markets.
Details
- Title: Subtitle
- Technical Change, Organizational Form, and the Structure of Bank Production
- Creators
- William HunterStephen Timme
- Resource Type
- Journal article
- Publication Details
- Journal of money, credit and banking, Vol.18(2), pp.152-166
- DOI
- 10.2307/1992199
- ISSN
- 0022-2879
- eISSN
- 1538-4616
- Publisher
- Ohio State University Press
- Language
- English
- Date published
- 05/01/1986
- Academic Unit
- Finance
- Record Identifier
- 9984963136702771
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