ISSN:
1467-8292
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
This study uses accounting data stemming from 80 credit unions affiliated to the “Fédération des caisses populaires acadiennes” to estimate a multi-product translog cost function with the aim to test for the presence of scale and scope economies. The cost model relies on the production approach and the financial services are gathered in four categories of products. The model is completed by three inputs and one control variable, the latter being used to capture the heterogeneity of costs arising from the average wealth of membership. Since the estimated output elasticity of the total cost, 0.89, is statistically less than one, the models detect quite important scale economies. As to scope economies, they are present but the coefficients are weakly significant.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/1467-8292.00120
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