Loretta J. Mester

Federal Reserve Banks - Federal Reserve Bank of Cleveland

East 6th & Superior

Cleveland, OH 44101-1387

United States

University of Pennsylvania - The Wharton School

3641 Locust Walk

Philadelphia, PA 19104-6365

United States

SCHOLARLY PAPERS

40

DOWNLOADS
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10,790

CITATIONS
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SSRN RANKINGS

Top 4,035

in Total Papers Citations

201

Scholarly Papers (40)

1.

Efficiency in Banking: Theory, Practice, and Evidence

FRB of Philadelphia Working Paper No. 08-1
Number of pages: 32 Posted: 15 Feb 2008
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 2,304 (5,629)
Citation 10

Abstract:

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Bank, efficiency, risk, cost, profit, agency costs, X-inefficiency

2.

Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?

Board of Governors of the Federal Reserve System Working Paper No. 1997-10
Number of pages: 59 Posted: 29 Nov 1998
Allen N. Berger and Loretta J. Mester
University of South Carolina - Darla Moore School of Business and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 1,262 (15,114)
Citation 29

Abstract:

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3.

Measuring the Performance of Banks: Theory, Practice, Evidence, and Some Policy Implications

Oxford Handbook of Banking, 2nd edition, 2013, Forthcoming, FRB of Philadelphia Working Paper No. 13-31
Number of pages: 36 Posted: 06 Aug 2013
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 1,080 (19,225)
Citation 3

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Bank, Efficiency, Risk, Cost, Profit, Scale Economies, X-Inefficiency

4.

What Explains the Dramatic Changes in Cost and Profit Performance of the U.S. Banking Industry?

Working Paper No. 99-1
Number of pages: 48 Posted: 02 Apr 1999
Allen N. Berger and Loretta J. Mester
University of South Carolina - Darla Moore School of Business and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 673 (37,447)
Citation 19

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5.

Are Scale Economies in Banking Elusive or Illusive? Evidence Obtained by Incorporating Capital Structure and Risk-Taking into Models of Bank Production

FRB of Philadelphia Working Paper No. 00-04
Number of pages: 46 Posted: 21 Aug 2000
Loretta J. Mester, Joseph P. Hughes and Choon-Geol Moon
Federal Reserve Banks - Federal Reserve Bank of Cleveland, Rutgers, The State University of New Jersey - Department of Economics and Hanyang University
Downloads 604 (43,259)
Citation 5

Abstract:

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6.

Explaining the Dramatic Changes in Performance of U.S. Banks: Technological Change, Deregulation, and Dynamic Changes in Competition

FRB Philadelphia Working Paper No. 01-6
Number of pages: 43 Posted: 14 Sep 2001
Allen N. Berger and Loretta J. Mester
University of South Carolina - Darla Moore School of Business and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 578 (45,799)
Citation 3

Abstract:

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Bank, productivity, efficiency, cost, profit

7.

On the Profitability and Cost of Relationship Lending

97-43
Number of pages: 34 Posted: 13 Jan 1998
Mitchell Berlin and Loretta J. Mester
Federal Reserve Bank of Philadelphia - Research Department and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 420 (68,225)
Citation 2

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8.

Checking Accounts and Bank Monitoring

FRB of Philadelphia Working Paper No. 01-3
Number of pages: 39 Posted: 01 May 2001
Loretta J. Mester, Leonard I. Nakamura and Micheline Renault
Federal Reserve Banks - Federal Reserve Bank of Cleveland, Federal Reserve Banks - Federal Reserve Bank of Philadelphia and University of Quebec at Montreal
Downloads 407 (70,921)
Citation 23

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Do Bankers Sacrifice Value to Build Empires? Managerial Incentives, Industry Consolidation, and Financial Performance

FRB of Philadelphia Working Paper No. 02-2
Number of pages: 43 Posted: 20 Jun 2002
Rutgers, The State University of New Jersey - Department of Economics, Villanova University - Villanova School of Business, Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University
Downloads 386 (74,738)
Citation 1

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consolidation, acquisitions, managerial incentives, efficiency, agency problems, corporate control, stochastic frontier

Do Bankers Sacrifice Value to Build Empires? Managerial Incentives, Industry Consolidation, and Financial Performance

Journal of Banking and Finance, Forthcoming
Posted: 02 Sep 2002
Rutgers, The State University of New Jersey - Department of Economics, Villanova University - Villanova School of Business, Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University

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consolidation, acquisitions, managerial incentives, efficiency, agency problems, corporate control, stochastic frontier

Who Said Large Banks Don't Experience Scale Economies? Evidence from a Risk-Return-Driven Cost Function

Forthcoming in the Journal of Financial Intermediation       , FRB of Philadelphia Working Paper No. 13-13
Number of pages: 50 Posted: 26 Apr 2013 Last Revised: 25 Mar 2016
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 220 (137,591)
Citation 1

Abstract:

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Banking, Production, Risk, Scale economies, Too big to fail

Who Said Large Banks Don't Experience Scale Economies? Evidence from a Risk-Return-Driven Cost Function

FRB of Philadelphia Working Paper No. 11-27
Number of pages: 39 Posted: 04 Aug 2011
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 120 (232,834)
Citation 21

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banking, production, risk, scale economies, too big to fail

11.

Transactions Accounts and Loan Monitoring

FRB of Philadelphia Working Paper No. 05-14
Number of pages: 45 Posted: 14 Sep 2005
Loretta J. Mester and Leonard I. Nakamura
Federal Reserve Banks - Federal Reserve Bank of Cleveland and Federal Reserve Banks - Federal Reserve Bank of Philadelphia
Downloads 336 (88,505)
Citation 4

Abstract:

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Collateral, Asset-based lending, Operating loan, Monitoring, Transactions account

12.

Switching Costs and Adverse Selection in the Market for Credit Cards: New Evidence

Journal of Banking and Finance, Vol. 30, No. 6, 2006, FRB Philadelphia Working Paper No. 05-16
Number of pages: 46 Posted: 09 Sep 2005 Last Revised: 16 Feb 2011
Paul S. Calem, Michael B. Gordy and Loretta J. Mester
Federal Reserve Banks - Federal Reserve Bank of Philadelphia, Federal Reserve Board and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 248 (122,516)
Citation 9

Abstract:

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Credit cards, Consumer switching costs, Adverse selection

13.

Applying Efficiency Measurement Techniques to Central Banks

FRB of Philadelphia Working Paper No. 03-13
Number of pages: 40 Posted: 18 Aug 2004
Loretta J. Mester
Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 244 (124,596)
Citation 7

Abstract:

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Central bank, policy objectives, efficiency, cost, profit, production

14.

Optimal Industrial Structure in Banking

FRB of Philadelphia Working Paper No. 08-2
Number of pages: 43 Posted: 15 Feb 2008
Loretta J. Mester
Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 234 (129,932)
Citation 4

Abstract:

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15.

Optimal Financial Contracts for Large Investors: The Role of Lender Liability

FRB Philadelphia Working Paper No. 00-1
Number of pages: 35 Posted: 29 Mar 2000
Mitchell Berlin and Loretta J. Mester
Federal Reserve Bank of Philadelphia - Research Department and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 188 (159,889)

Abstract:

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16.

Potential Competitive Effects on U.S. Bank Credit Card Lending from the Proposed Bifurcated Application of Basel Ii

FRB Philadelphia Working Paper No. 05-29
Number of pages: 80 Posted: 16 Jan 2006
William W. Lang, Loretta J. Mester and Todd Vermilyea
Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Federal Reserve Bank of Philadelphia
Downloads 180 (166,255)
Citation 2

Abstract:

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Credit cards, Basel capital accord

17.

Financial Contracts and the Legal Treatment of Informed Investors

Working Paper No. 99-10
Number of pages: 42 Posted: 29 Sep 1999
Mitchell Berlin and Loretta J. Mester
Federal Reserve Bank of Philadelphia - Research Department and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 164 (180,357)

Abstract:

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18.

Transaction Accounts and Loan Monitoring

FRB of Philadelphia Working Paper No. 04-20
Number of pages: 44 Posted: 28 Oct 2004
Loretta J. Mester, Leonard I. Nakamura and Micheline Renault
Federal Reserve Banks - Federal Reserve Bank of Cleveland, Federal Reserve Banks - Federal Reserve Bank of Philadelphia and University of Quebec at Montreal
Downloads 158 (186,222)
Citation 13

Abstract:

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Collateral, asset-based lending, operating loan, monitoring, transaction account

19.

Recovering Risky Technologies Using the Almost Ideal Demand System: An Application to U.S. Banking

FRB of Philadelphia Working Paper No. 00-05
Number of pages: 34 Posted: 21 Aug 2000
Federal Reserve Banks - Federal Reserve Bank of Cleveland, Rutgers, The State University of New Jersey - Department of Economics, Promontory Financial Group and Hanyang University
Downloads 130 (218,207)
Citation 2

Abstract:

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Banking, production, risk, efficiency, agency problems

Core Measures of Inflation as Predictors of Total Inflation

FRB of Philadelphia Working Paper No. 11-24
Number of pages: 29 Posted: 02 Jul 2011 Last Revised: 04 Aug 2011
Swarthmore College, Murray, Devine and Company, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Federal Reserve Banks - Federal Reserve Bank of Philadelphia
Downloads 73 (323,549)
Citation 6

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Core Measures of Inflation as Predictors of Total Inflation

FRB of Philadelphia Working Paper No. 08-9
Number of pages: 40 Posted: 06 Sep 2008 Last Revised: 09 Oct 2008
Federal Reserve Banks - Federal Reserve Bank of Philadelphia, Swarthmore College, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Murray, Devine and Company
Downloads 54 (379,252)
Citation 1

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21.

Central Bank Institutional Structure and Effective Central Banking: Cross Country Empirical Evidence

FRB of Philadelphia Working Paper No. 08-5, BOFIT Discussion Paper No. 29/2008
Number of pages: 40 Posted: 29 Apr 2008
Iftekhar Hasan and Loretta J. Mester
Fordham University - Gabelli School of Business and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 107 (251,760)
Citation 2

Abstract:

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Banks and banking, Central

22.

Large Capital Infusions, Investor Reactions, and the Return and Risk Performance of Financial Institutions Over the Business Cycle and Recent Financial Crisis

FRB of Philadelphia Working Paper No. 11-46
Number of pages: 37 Posted: 12 Oct 2011 Last Revised: 10 Dec 2015
Elyas Elyasiani, Loretta J. Mester and Michael S. Pagano
Temple University - Department of Finance, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Villanova University - Villanova School of Business
Downloads 99 (265,480)
Citation 8

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Securities Issuance, Market Reaction, Financial Service Firms, Commercial Banks, Government Intervention

Large Capital Infusions, Investor Reactions, and the Return and Risk-Performance of Financial Institutions Over the Business Cycle

Journal of Financial Stability 11 (2014) 62-81, Fox School of Business Research Paper
Number of pages: 20 Posted: 17 Jun 2014
Elyas Elyasiani, Loretta J. Mester and Michael S. Pagano
Temple University - Department of Finance, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Villanova University - Villanova School of Business
Downloads 64 (347,960)

Abstract:

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Securities issuance, Market reaction, Financial service firms, Commercial banks, Government intervention

Large Capital Infusions, Investor Reactions, and the Return and Risk-Performance of Financial Institutions Over the Business Cycle

FRB of Philadelphia Working Paper No. 13-23
Number of pages: 44 Posted: 25 May 2013
Elyas Elyasiani, Loretta J. Mester and Michael S. Pagano
Temple University - Department of Finance, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Villanova University - Villanova School of Business
Downloads 32 (467,052)

Abstract:

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Securities Issuance, Market Reaction, Financial Service Firms, Commercial Banks, Government Intervention

24.

A Primer on Market Discipline and Governance of Financial Institutions for Those in a State of Shocked Disbelief

FRB of Philadelphia Working Paper No. 12-13
Number of pages: 47 Posted: 07 Jun 2012
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 83 (296,919)

Abstract:

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Banking, Regulation, Market Discipline

25.

Market Discipline Working for and against Financial Stability: The Two Faces of Equity Capital in U.S. Commercial Banking

Number of pages: 38 Posted: 15 Dec 2016
Joseph P. Hughes, Loretta J. Mester and Choon-Geol Moon
Rutgers, The State University of New Jersey - Department of Economics, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University
Downloads 75 (315,248)

Abstract:

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Banking, Efficiency, Capital Structure, Charter Value

26.

Measuring Agency Costs and the Value of Investment Opportunities of U. S. Bank Holding Companies with Stochastic Frontier Estimation

Research Handbook on Competition in Banking and Finance, eds. Jacob A. Bikker and Laura Spierdijk, Edward Elgar Publishing, Forthcoming
Number of pages: 36 Posted: 30 Jun 2016
Joseph P. Hughes, Loretta J. Mester and Choon-Geol Moon
Rutgers, The State University of New Jersey - Department of Economics, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University
Downloads 72 (322,521)

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banking, efficiency, ownership structure, competition

Does Scale Matter in Community Bank Performance? Evidence Obtained by Applying Several New Measures of Performance

Number of pages: 66 Posted: 10 Mar 2018 Last Revised: 16 May 2019
Rutgers, The State University of New Jersey - Department of Economics, Federal Reserve Banks - Federal Reserve Bank of Philadelphia, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University
Downloads 34 (457,509)

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Community Banking, Scale, Financial Performance, Small Business Lending

Is Bigger Necessarily Better in Community Banking?

FRB of Philadelphia Working Paper No. 16-15
Number of pages: 53 Posted: 21 Jun 2016 Last Revised: 21 Feb 2019
Joseph P. Hughes, Julapa Jagtiani and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics, Federal Reserve Banks - Federal Reserve Bank of Philadelphia and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 51 (389,398)

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Community Banking, Scale, Financial Performance, Small Business Lending

Is Bigger Necessarily Better in Community Banking?

FRB of Cleveland Working Paper No. 16-15
Number of pages: 54 Posted: 18 Sep 2016
Joseph P. Hughes, Julapa Jagtiani and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics, Federal Reserve Banks - Federal Reserve Bank of Philadelphia and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 18 (550,095)

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community banking, scale, financial performance, small business lending

29.

The Future of Large, Internationally Active Banks: Does Scale Define the Winners?

Rutgers University Economics Working Paper 201524
Number of pages: 22 Posted: 27 Jun 2016
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 60 (354,797)

Abstract:

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banking, efficiency, scale economies, regulation

30.

The Performance of Financial Institutions: Modeling, Evidence, and Some Policy Implications

Oxford Handbook of Banking, 3rd edition, Forthcoming
Number of pages: 44 Posted: 05 Oct 2018
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland
Downloads 32 (455,627)

Abstract:

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Bank, Efficiency, Risk, Cost, Profit, Scale Economies, X-Inefficiency

31.

Competitive Effects of Basel II on U.S. Bank Credit Card Lending

FRB of Philadelphia Working Paper No. 07-9
Posted: 18 Apr 2007 Last Revised: 14 Sep 2008
William W. Lang, Loretta J. Mester and Todd Vermilyea
Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Federal Reserve Bank of Philadelphia

Abstract:

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Basel Accord, Basel II, capital requirements, bank regulation, competition

32.

Deposits and Relationship Lending

Review of Financial Studies, Vol. 12, Issue 3, 1999
Posted: 07 May 1999
Mitchell Berlin and Loretta J. Mester
Federal Reserve Bank of Philadelphia - Research Department and Federal Reserve Banks - Federal Reserve Bank of Cleveland

Abstract:

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33.

Efficiency of Banks in the Third Federal Reserve District

94-13
Posted: 20 Jul 1998
Loretta J. Mester
Federal Reserve Banks - Federal Reserve Bank of Cleveland

Abstract:

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34.

Evidence on the Objectives of Bank Managers

94-15
Posted: 15 Jul 1998
Joseph P. Hughes and Loretta J. Mester
Rutgers, The State University of New Jersey - Department of Economics and Federal Reserve Banks - Federal Reserve Bank of Cleveland

Abstract:

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35.

Consumer Behavior and the Stickiness of Credit Card Interest Rates

94-14
Posted: 14 Jul 1998
Paul S. Calem and Loretta J. Mester
Federal Reserve Banks - Federal Reserve Bank of Philadelphia and Federal Reserve Banks - Federal Reserve Bank of Cleveland

Abstract:

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36.

Recovering Risky Technologies Using the Almost Ideal Demand System: An Application to U.S. Banking Mutual Funds

WFIC Working Paper No.97-47
Posted: 10 Jul 1998
Rutgers, The State University of New Jersey - Department of Economics, Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University

Abstract:

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37.

Intermediation and Vertical Integration

Journal of Money, Credit and Banking, Vol. 30, No. 3, Part 2 (August 1998)
Posted: 06 Apr 1998
Mitchell Berlin and Loretta J. Mester
Federal Reserve Bank of Philadelphia - Research Department and Federal Reserve Banks - Federal Reserve Bank of Cleveland

Abstract:

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38.

Efficient Banking Under Interstate Branching

J. OF MONEY, CREDIT, AND BANKING, Vol. 28 No. 4, November 1996
Posted: 29 Oct 1996
Rutgers, The State University of New Jersey - Department of Economics, Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University

Abstract:

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39.

Why is the Banking Sector Shrinking?

Paper ID: 96-18
Posted: 08 Oct 1996
Mitchell Berlin and Loretta J. Mester
Federal Reserve Bank of Philadelphia - Research Department and Federal Reserve Banks - Federal Reserve Bank of Cleveland

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40.

Safety in Numbers? Geographic Diversification and Bank Insolvency Risk

96-14
Posted: 10 Sep 1996
Rutgers, The State University of New Jersey - Department of Economics, Promontory Financial Group, Federal Reserve Banks - Federal Reserve Bank of Cleveland and Hanyang University

Abstract:

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