Estimation of scale and scope economies in multiproduct banking: Evidence from the Fourier flexible functional form with panel data

Applied Economics

Volumn 36, Issue 11, 2004, Pages 1245-1253

  Huang, Tai Hsin ^a   Wang, Mei Hui ^b  

^a Department of Economics ^*  (Taiwan)

^b TAMKANG UNIVERSITY   (Taiwan)

Author keywords

[No Author keywords available]

Indexed keywords

BANKING; ECONOMY OF SCALE; INDUSTRIAL PERFORMANCE; PANEL DATA; SCALE EFFECT;

EID: 3543067055     PISSN: 00036846     EISSN: None     Source Type: Journal    
DOI: 10.1080/0003684042000247415     Document Type: Article

References (21)

1. Atkinson, S. E. and Cornwell, C. (1994) Estimation of output and input technical efficiency using a flexible functional form and panel data, International Economic Review, 35, 245-55.
2. Berger, A. N., Hanweck, G. A. and Humphrey, D. B. (1987) Competitive viability in banking: scale, scope and product mix economies, Journal of Monetary Economies, 20, 501-20.
3. Berger, A. N. and Humphrey, D. B. (1997) Efficiency of financial institutions: international survey and directions for future research, European Journal of Operational Research, 98(2), 175-212.
4. Berger, A. N., Leusner, J. H. and Mingo, J. J. (1997) The efficiency of bank branches, Journal of Monetary Economics, 40, 141-62.
5. Berger, A. N. and Mester, L. J. (1997) Inside the black box: what explains differences in the efficiencies of financial institutions?, Journal of Banking and Finance, 21, 895-947.
6. Berger, A. N. and De Young, R. (1997) Problem loans and cost efficiency in commercial banks, Journal of Banking and Finance, 21, 849-70.
7. Chalfant, J. A. and Gallant, A. R. (1985) Estimating substitution elasticities with the Fourier cost function: some Monte Carlo results, Journal of Econometrics, 28, 205-22.
8. De Young, R., Hasan, I. and Kirchhoff, B. (1998) The impact of out-of-state entry on the efficiency of local banks, Journal of Economics and Business, 50, 191-203.
9. Eastwood, B. J. and Gallant, A. R. (1991) Adaptive rules for seminonparametric estimators that achieve asymptotic normality, Econometric Theory, 7, 307-40.
10. Elbadawi, I., Gallant, A. R. and Souza, G. (1983) An elasticity can be estimated consistently without a priori knowledge of functional form, Econometrics, 51, 1731-53.
11. Gallant, A. R. (1981) On the bias in flexible functional forms and an essentially unbiased form: the Fourier flexible form, Journal of Econometrics, 15, 211-45.
12. Gallant, A. R. (1982) Unbiased determination of production technologies, Journal of Econometries, 20, 285-323.
13. Huang, T. H. and Wang, M. H. (2001) Measuring scale and scope economies in multiproduct banking - A stochastic frontier approach, Applied Economics Letters, 8, 159-62.
14. Kim, H. Y. (1986) Economies of scale and economies of scope in multiproduct financial institutions: further evidence from Credit Union, Journal of Money, Credit and Banking, 18, 220-6.
15. Lang, G. and Welzel, P. (1996) Efficiency and technical progress in banking: empirical results for a panel of German cooperative banks, Journal of Banking and Finance, 20, 1003-23.
16. McAllister, P. H. and McManus, D. (1993) Resolving the scale efficiency puzzle in banking, Journal of Banking and Finance, 17, 389-406.
17. Mester, L. J. (1996) A study of bank efficiency taking into account risk-preferences, Journal of Banking and Finance, 20, 1025-45.
18. Mitchell, K. and Onvural, N. M. (1996) Economics of scale and scope at large commercial banks: evidence from the Fourier flexible function form, Journal of Money, Credit and Banking, 28, 178-99.
19. Shephard, R. W. (1953) Cost and Production Functions, Princeton University Press, Princeton, NJ.
20. Uzawa, H. (1962) Production functions with constant elasticity of substitution, Review of Economic Studies, 29(4), 291-99.
21. White, H. (1980) Using least squares to approximate unknown regression functions, International Economic Review, 21, 149-69.