Measurement of Economies of Scale in Victorian Credit Unions

Rayna Brown and Ian O'Connor
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Rayna Brown: Syme Department of Banking and Finance, Monash University, Caulfield VIC 3145.
Ian O'Connor: Senior Author, Department of Accountancy and Law, Victoria University of Technology (Footscray Campus), PO Box 14428 MCMC, Melbourne VIC 8001.

Australian Journal of Management, 1995, vol. 20, issue 1, 1-24

Abstract: This study on economies of scale in credit unions differs from the only previous Australian study in three important ways: (a) the cost function is derived from the translog production function; (b) estimates of economies of scale are made for four cross†sectional periods, not one; and (c) the total sample of credit unions is divided into subsamples by asset size and bond of association type. Significant diseconomies of scale are found for some subsamples of small credit unions but for most subsamples the null hypothesis of constant returns to scale is not rejected.

Keywords: CREDIT UNIONS; ECONOMIES OF SCALE; TRANSLOG (search for similar items in EconPapers)
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:20:y:1995:i:1:p:1-24

DOI: 10.1177/031289629502000101

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