SCALE EFFICIENCY IN CANADIAN TRUST COMPANIES

Authors
BRESLAW JA MCINTOSH J
Citation
Ja. Breslaw et J. Mcintosh, SCALE EFFICIENCY IN CANADIAN TRUST COMPANIES, JOURNAL OF PRODUCTIVITY ANALYSIS, 8(3), 1997, pp. 281-292
Citations number
19
Categorie Soggetti
Business,"Social Sciences, Mathematical Methods
Journal title
JOURNAL OF PRODUCTIVITY ANALYSIS → ACNP
ISSN journal
0895562X
Volume
8
Issue
3
Year of publication
1997
Pages
281 - 292
Database
ISI
SICI code
0895-562X(1997)8:3<281:SEICTC>2.0.ZU;2-0
Abstract
A new method for estimating a relative scale function is derived which does not require the specification or estimation of the firm's cost f unction. The method is applied to a panel of Canadian trust companies for the years 1985-1988. Results show that the industry scale function is convex with respect to firm size, as measured by the firm's assets . The method avoids a number of shortcomings associated with tradition al studies of scale economies in financial institutions.