New evidence on returns to scale and product mix among U.S. commercial banks ¬リニ
نویسندگان
چکیده
This paper presents new estimates of scale and product mix economies for U.S. commercial banks. We compare estimates derived from fitting a translog function to bank costs with estimates derived from nonparametric methods. We refine measures of scale and product mix economies introduced by Berger et al. (J. Monet. Econ. 20 (1987) 501) to accommodate nonparametric estimation, and estimate confidence intervals to assess the statistical significance of returns to scale. Broadly, we find evidence that potential economies have increased since 1985, with scale economies not exhausted until We are grateful to Robert DeYoung, David Humphrey, James McIntosh, and an anonymous referee for comments on an earlier draft. Versions of this paper have been presented at the 1997 Texas Econometrics Camp, the 1998 North American summer meetings of the Econometric Society in Montreal, and the 1998 Georgia Productivity Workshop. We are also grateful to the Texas Advanced Computing Center (TACC) for a grant of computational time on their SGI=Cray T3E parallel supercomputer, and especially to Robert Harkness of the TACC staff for help in porting code to the T3E environment. Any remaining errors, of course, are solely our responsibility. The views expressed herein do not necessarily reflect official positions of the Federal Reserve Bank of St. Louis or the Federal Reserve System. *Corresponding author. Tel.: +1-314-444-8570; fax: +1-314-444-8731. E-mail address: [email protected] (D.C. Wheelock). 0304-3932/01/$ see front matter r 2001 Elsevier Science B.V. All rights reserved. PII: S 0 3 0 4 3 9 3 2 ( 0 1 ) 0 0 0 5 9 9 banks have $300–$500 million of assets. We generally fail to reject constant returns for larger banks. r 2001 Elsevier Science B.V. All rights reserved. JEL classification: C14; E59; G21; L11
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