Who said large banks don't experience scale economies? Evidence from a risk-return-driven cost function

Arbeitspapier

Earlier studies found little evidence of scale economies at large banks; later studies using data from the 1990s uncovered such evidence, providing a rationale for very large banks seen worldwide. Using more recent data, we estimate scale economies using two production models. The standard risk-neutral model finds little evidence of scale economies. The model using more general risk preferences and endogenous risk-taking finds large scale economies. We show that these economies are not driven by too-big-to-fail considerations. We evaluate the cost implications of breaking up the largest banks into banks of smaller size.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 2011-27

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Firm Behavior: Theory ; Production and Organizations: General
• Thema: Großbank ; Skalenertrag ; Theorie ; Schätzung ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hughes, Joseph J. ; Mester, Loretta
• Ereignis: Veröffentlichung
• (wer): Rutgers University, Department of Economics
• (wo): New Brunswick, NJ
• (wann): 2011

Weitere Informationen

• Handle: http://hdl.handle.net/10419/59493
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ