Core Deposits and Physical Capital: A Reexamination of Bank Scale Economies and Efficiency with Quasi-Fixed Inputs

William C Hunter and Stephen G Timme

Journal of Money, Credit and Banking, 1995, vol. 27, issue 1, 165-85

Abstract: This paper compares measures of bank production efficiency assuming all bank inputs are completely variable with measures obtained from specifications which take account of the quasi-fixed nature of core deposits and bank physical capital, and the treatment of certain deposits as outputs. The empirical results imply that scale economy measures vary substantially for small to medium-sized banks whereas those for the largest banks are fairly robust to the different specifications. Estimates of economies of scope were found to be invariant to different input/output specifications, whereas efficiency measures varied significantly with changes in the specification of the cost function and with the definition of outputs and inputs. Copyright 1995 by Ohio State University Press.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (50)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819950 ... CO%3B2-%23&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:27:y:1995:i:1:p:165-85

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing (jdl@wiley.com) and Christopher F. Baum (baum@bc.edu).