111
Views
3
CrossRef citations to date
0
Altmetric
Original Articles

Analysing scale and scope specialization efficiencies of US agricultural and nonagricultural banks using the Fourier flexible functional form

, , , &
Pages 1103-1116 | Published online: 05 Apr 2011

References

  • Bauer , PW and Ferrier , GD . 1996 . Scale economies, cost efficiencies, and technological change in federal reserve payments processing . Journal of Money, Credit and Banking , 28 : 1004 – 39 .
  • Baumol , WJ , Panzar , J and Willig , R . 1982 . Contestable Markets and the Theory of Industry Structure , New York : Harcourt Brace Hovanovich .
  • Berger , AN , Hanweck , G and Humphrey , D . 1987 . Competitive viability in banking: scale, scope, and product mix economies . Journal of Monetary Economics , 20 : 501 – 20 .
  • Berger , AN and Humphrey , D . 1991 . The dominance of inefficiencies over scale and product mix economies in banking . Journal of Monetary Economics , 28 : 117 – 48 .
  • Berger , AN and Mester , L . 1997 . Inside the black box: what explains differences in the efficiencies of financial institutions? . Journal of Banking and Finance , 21 : 895 – 947 .
  • Chalfant , JA and Gallant , AR . 1985 . Estimating substitution elasticities with the Fourier cost function: some Monte Carlo results . Journal of Econometrics , 28 : 205 – 22 .
  • Coelli, T., Estache, A., Perelman, S. and Trujillo, L. (2003) A primer on efficiency measurement for utilities and transport regulators, World Bank Institute Development Studies, World Bank, Washington, DC, USA.
  • Eastwood , BJ and Gallant , A . 1991 . Adaptive rules for semi-nonparametric estimators that achieve asymptotic normality . Econometric Theory , 7 : 307 – 40 .
  • Ellinger , PN . 1994 . Potential gains from efficiency analysis of agricultural banks . American Journal of Agricultural Economics , 76 : 652 – 4 .
  • Ellinger , PN and Neff , DL . 1993 . Issues and approaches in efficiency analysis of agricultural banks . Agricultural Finance Review , 53 : 82 – 99 .
  • Featherstone , AM and Moss , CB . 1994 . Measuring economies of scale and scope in agricultural banking . American Journal of Agricultural Economics , 76 : 655 – 61 .
  • Gallant , AR . 1981 . On the bias in flexible functional forms and essentially unbiased form . Journal of Econometrics , 15 : 211 – 45 .
  • Gallant , AR . 1982 . Unbiased determination of production technologies . Journal of Econometrics , 20 : 285 – 323 .
  • Gallant , AR and Souza , G . 1991 . On the asymptotic normality of Fourier flexible form estimates . Journal of Econometrics , 50 : 329 – 53 .
  • Gilligan , TW and Smirlock , M . 1984 . An empirical study of joint production and scale economies in commercial banking . Journal of Banking and Finance , 8 : 67 – 77 .
  • Greene , WH . 2003 . Econometric Analysis, , 5th , Upper Saddle River, NJ : Prentice Hall .
  • Gropper , DM . 1991 . Empirical investigation of changes in scale economies for the commercial banking firm, 1979–1986 . Journal of Money, Credit, and Banking , 23 : 718 – 27 .
  • Hausman , JA . 1978 . Specification tests in econometrics . Econometrics , 46 : 1251 – 71 .
  • Huang , TH and Wang , M . 2004 . Estimation of scale and scope economies in multiproduct banking: evidence from the Fourier flexible functional form with panel data . Applied Economics , 36 : 1245 – 53 .
  • Hughes , JP and Mester , LJ . 1993 . A quality and risk-adjusted cost function for banks: evidence on the ‘too-big-to-fail' doctrine . Journal of Productivity Analysis , 4 : 292 – 315 .
  • Hughes, J. P., Mester, L. J. and Moon, C. (2000) Are all scale economies in banking elusive or illusive: evidence obtained by incorporating capital structure and risk taking into models of bank production, Working Paper No. 00-33, Wharton Center for Financial Institutions.
  • Hunter , WC , Timme , S and Yang , W . 1990 . An examination of cost subadditivity and multiproduct production in larger US banks . Journal of Money, Credit and Banking , 22 : 504 – 25 .
  • Kim , HY . 1986 . Economies of scale and economies of scope in multiproduct financial institutions: further evidence from credit unions . Journal of Money, Credit and Banking , 18 : 220 – 6 .
  • Lamb , RL . 1999 . A market-forces policy for the new farm economy . Applied Economic Perspectives and Policy , 24 : 15 – 30 .
  • McAllister , PH and McManus , D . 1993 . Resolving the scale efficiency puzzle in banking . Journal of Banking and Finance , 17 : 389 – 406 .
  • Mester , LJ . 1996 . A study of bank efficiency taking into account risk-preferences . Journal of Banking and Finance , 20 : 1025 – 45 .
  • Mitchell , K and Onvural , N . 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 .
  • Neff , DL , Dixon , BL and Zhu , S . 1994 . Measuring the efficiency of agricultural banks . American Journal of Agricultural Economics , 76 : 662 – 8 .
  • Northcott , CA . 2004 . Competition in banking: a review of literature , Working Paper No. 04-24 Bank of Canada .
  • Noulas , AG , Ray , B and Miller , S . 1990 . Returns to scale and input substitution for large banks . Journal of Money, Credit, and Banking , 22 : 94 – 108 .
  • Ogawa , K . 2008 . Why are concavity conditions not satisfied in the cost function?: the case of Japanese manufacturing firms during the bubble period , Discussion Paper No. 719 Osaka, , Japan : The Institute of Social and Economic Research, Osaka University .
  • Samolyk , KA . 1989 . The role of banks in influencing regional flows of funds , Working Paper No. 8914 Federal Reserve Bank of Cleveland .
  • Stam, J., Milkove, D., Koenig, S., Ryan, J., Covey, T., Hoppe, R. and Sundell, P. (2003) Agricultural Income and Finance Annual Lender Issue, Economic Research Service, US Department of Agriculture.
  • Stirob , KJ and Metli , C . 2003 . The evolution of loan quality for US banks . Current Issues in Economics and Finance , 9 : 1 – 7 .
  • Walraven, N. A., Ott, W. and Rosine, J. (1993) Agricultural Finance Databook, Board of Governors of the Federal Reserve System.
  • White , H . 1980 . Using least squares to approximate unknown regression functions . International Economic Review , 21 : 149 – 64 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.