The Structure of Technology in a Multioutput Branch Banking Firm |
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| Authors: | Moshe Kim Uri Ben-Zion |
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| Institution: | 1. Department of Economics , University of Haifa , Haifa , 31999 , Israel;2. Faculty of Commerce and Business Administration , University of British Columbia , Vancouver , British Columbia , V6T 1Y8 , Canada;3. Faculty of Industrial Engineering and Management , Technion—Israel Institute of Technology , Haifa , Israel |
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| Abstract: | We formulate and estimate a multioutput bank's cost function amenable for distinguishing between economies of scale and economies of network density. We find significant returns to network density, especially for smaller banks. Diseconomies of scale are found for the larger banks, whereas the hypothesis of constant returns to scale could not be rejected for the smaller banks. |
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| Keywords: | Density Scale Scope |
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