New evidence on returns to scale and product mix among U.S. commercial banks

Journal of Monetary Economics

Volumn 47, Issue 3, 2001, Pages 653-674

  Wheelock, David C ^a   Wilson, Paul W ^b  

^a Research Department   (United States)

^b UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

C14; E59; Economies of scope; G21; Kernel regression; L11; Local linear smoother; Nonparametric; Returns to scale

Indexed keywords

EID: 0001122676     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3932(01)00059-9     Document Type: Article

References (29)

1. Akhavein J.D., Berger A.N., Humphrey D.B. The effects of megamergers on efficiency and prices: evidence from a bank profit function. Review of Industrial Organization. 12:1997;95-139.
2. Barnett W.A., Geweke J., Wolfe M. Seminonparametric Bayesian estimation of the asymptotically ideal production model. Journal of Econometrics. 49:1991;5-50.
3. Berger A.N., DeYoung R. Problem loans and cost efficiency in commercial banks. Journal of Banking and Finance. 21:1997;849-870.
4. Berger A.N., Hanweck G.A., Humphrey D.B. Competitive viability in banking: scale, scope, and product mix economies. Journal of Monetary Economics. 20:1987;501-520.
5. Berger A.N., Humphrey D.B. The dominance of inefficiencies over scale and product mix economies in banking. Journal of Monetary Economics. 28:1991;117-148.
6. Berger A.N., Humphrey D.B. Megamergers in banking and the use of cost efficiency as an antitrust defense. The Antitrust Bulletin. 37:1992;541-600.
7. Berger A.N., Humphrey D.B. Efficiency of financial institutions: international survey and directions for future research. European Journal of Operational Research. 98:1997;175-212.
8. Berger A.N., Kashyap A.K., Scalise J.M. The transformation of the U.S. banking industry: what a long, strange trip it's been. Brookings Papers on Economic Activity. 2:1995;55-218.
9. Berger A.N., Leusner J.H., Mingo J.J. The efficiency of bank branches. Journal of Monetary Economics. 30:1997;141-162.
10. Berger A.N., Mester L.J. Inside the black box: what explains differences in the efficiencies of financial institutions? Journal of Banking and Finance. 21:1997;895-947.
11. Boyd, J.H., Graham, S.L., 1991. Investigating the banking consolidation trend. Quarterly Review, Federal Reserve Bank of Minneapolis (Spring), pp. 3-15.
12. Clark J.A. Economic cost, scale efficiency, and competitive viability in banking. Journal of Money, Credit, and Banking. 28:1996;342-364.
13. Fan J., Gijbels I. Local Polynomial Modelling and Its Applications. 1996;Chapman and Hall, London.
14. Gallant A.R. On the bias in flexible functional forms and an essentially unbiased form. Journal of Econometrics. 15:1981;211-245.
15. Gallant A.R. Unbiased determination of production technologies. Journal of Econometrics. 20:1982;285-323.
16. Gasser T., Müller H.G. Kernel estimation of regression functions. Gasser T., Rosenblatt M. Smoothing Techniques for Curve Estimation. 1979;23-68 Springer, Berlin.
17. Härdle W. Applied Nonparametric Regression. 1990;Cambridge University Press, Cambridge.
18. Härdle W., Mammen E. Comparing nonparametric versus parametric regression fits. Annals of Statistics. 21:1993;1926-1947.
19. Hunter W.C., Timme S.G. Core deposits and physical capital: a reexamination of bank scale economies and efficiency with quasi-fixed inputs. Journal of Money, Credit, and Banking. 27:1995;165-185.
20. Kaparakis E.I., Miller S.M., Noulas A. Short-run cost inefficiency of commercial banks: a flexible stochastic frontier approach. Journal of Money, Credit and Banking. 26:1994;875-893.
21. McAllister P.H., McManus D. Resolving the scale efficiency puzzle in banking. Journal of Banking and Finance. 17:1993;389-405.
22. McManus, D.A., 1994. Measuring scale and scope economies in banking using the localized translog functional form. Finance and Economics Discussion Series working paper #94-30, Board of Governors of the Federal Reserve System, Washington, DC.
23. Mitchell K., Onvural N.M. Economies of scale and scope at large commercial banks: evidence from the Fourier flexible functional form. Journal of Money, Credit, and Banking. 28:1996;178-199.
24. Nadarya E.A. On estimating regression. Theory of Probability and its Applications. 10:1964;186-190.
25. Priestly M.B., Chao M.T. Nonparametric function fitting. Journal of the Royal Statistical Society, Series B. 34:1972;385-392.
26. Scott D.W. Multivariate Density Estimation: Theory, Practice, and Visualization. 1992;Wiley, New York.
27. Silverman B.W. Density Estimation for Statistics and Data Analysis. 1986;Chapman & Hall, London.
28. Watson G. Smooth regression analysis. Sankhya Series A. 26:1964;359-372.
29. Wheelock D.C., Wilson P.W. Technical progress, inefficiency, and productivity change in US banking, 1984 - 1993 Journal of Money, Credit, and Banking. 31:1999;212-234.