Cost Dispersion and the Measurement of Economies in Banking

15 Pages Posted: 27 Oct 2012

See all articles by David B. Humphrey

David B. Humphrey

Florida State University - Department of Finance

Date Written: 1987

Abstract

The concept of scale economies in banking is important because it implies that larger banks may have an inherent cost advantage over smaller ones. Such a competitive advantage could be increased if large banks found it easier to become even larger. This situation could occur if bank mergers were more freely permitted or nationwide banking became a reality.

Suggested Citation

Humphrey, David B., Cost Dispersion and the Measurement of Economies in Banking (1987). FRB Richmond Economic Review, vol. 73, no. 3, May/June 1987, pp. 24-38, Available at SSRN: https://ssrn.com/abstract=2125249

David B. Humphrey (Contact Author)

Florida State University - Department of Finance ( email )

Tallahassee, FL 32306-1042
United States
850-644-7899 (Phone)
850-668-6696 (Fax)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
27
Abstract Views
380
PlumX Metrics