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Economies of Scale in Australian Banks 1978–1990
Author(s) -
Walker Greg
Publication year - 1998
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.00007
Subject(s) - economies of scale , scale (ratio) , economics , function (biology) , estimation , period (music) , product (mathematics) , economy , business , econometrics , geography , microeconomics , mathematics , physics , geometry , cartography , management , evolutionary biology , acoustics , biology
This paper examines economies of scale in Australian banks. A bank multi‐product cost function is estimated using a translog functional form with data drawn from twelve banks spanning the period 1978 to 1990. Different formulations of the model are estimated. Results prove sensitive to estimation assumptions and data definitions however they support the presence of economies of scale for Australian banking in this period