Spurious Correlation between Economies and Scale

Bank panics and scale economies ∗

A bank panic is an expectation-driven redemption event that results in a self-fulfilling prophecy of losses on demand deposits. From the standpoint of theory in the tradition of Diamond and Dybvig (1983) and Green and Lin (2003), it is surprisingly diffi cult to generate bank panic equilibria if one allows for a plausible degree of contractual flexibility. A common assumption employed in the st...

The Economies of Scale in Iran Manufacturing Establishments

One of the topics after two decades of applying import substitution policy in Iran manufacturing sector is the importance of industrial export expansion and foreign relations. The main impetus to this policy transfer is the market expansion and potential gains of exploiting the economies of scale and technical upgrades. Based on this argument this research estimates the efficient scale and gain...

From Economies of Density and Network Scale to Multioutput Economies of Scale and Scope: a Synthesis

For more than twenty years, the cost structure of transport industries in general, and the airline industry in particular, has been analyzed through the calculation of two indices: returns to density (RTD) and returns to scale (RTS), which were originally proposed by Caves et al. (1984). During this period, there have been many observations, amendments, caveats and corrections about their calcu...

The Effects of Learning and Scale Economies in Health Sector: Case of Developed and Developing Countries

The quality and quantity of human capital are the most important factors in economic growth and its expansion depends on the educational and health infrastructure of countries. The education sector promotes the technical knowledge and skills of the human resources and the health sector provides its health; In addition, the quality of health services in turn is affected by education. Also, Learn...

Payment Scale Economies , Competition , and Pricing