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Efficacité et économies d'échelle des grandes banques canadiennes.
Author(s) -
Allen Jason,
Liu Ying
Publication year - 2007
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1365-2966.2007.00406.x
Subject(s) - economies of scale , scale (ratio) , returns to scale , panel data , economics , cost efficiency , banking industry , econometrics , set (abstract data type) , monetary economics , business , microeconomics , financial system , production (economics) , computer science , geography , programming language , operating system , cartography
. This paper measures the economies of scale of Canada's six largest banks and their cost‐efficiency over time. Using a unique panel data set from 1983 to 2003, we estimate pooled cost functions and derive measures of relative efficiency and economies of scale. The disaggregation of the data allows us to include non‐traditional outputs as well as time‐varying, bank‐specific effects. Our model leads us to reject constant returns to scale. These findings suggest there are potential scale benefits in the Canadian banking industry. We also find that technological and regulatory changes have had significant positive effects on the banks' cost structure.