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The Structure of Technology in a Multioutput Branch Banking Firm

Moshe Kim and Uri Ben-Zion

Journal of Business & Economic Statistics, 1989, vol. 7, issue 4, 489-96

Abstract: We formulate and estimate a multioutput bank's cost function amenable for distinguishing between economies of scale and economies of network density. We find significant returns to network density, epecially for samller banks. Diseconomies of scale are found for the larger banks, whereas the hypothesis of constant returns to scale could not be rejected for the smaller banks.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:bes:jnlbes:v:7:y:1989:i:4:p:489-96

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