The Two Product Banking Firm Under Uncertainty

16 Pages Posted: 17 Jun 2014 Last revised: 30 Dec 2016

See all articles by Elyas Elyasiani

Elyas Elyasiani

Temple University - Department of Finance

Date Written: 1983


The purpose of this paper is to develop a model of bank production and costs which removes the aforesaid deficiencies. In particular: a) in this model the neoclassical theory of the firm is applied to banks as a particular case, b) the non-intermediary portion of banking activity, namely the clearance output production, as well as resource costs and production function constraints are incorporated, and c) different aspects of bank behavior are integrated into a unified microeconomic framework and a set of simultaneous policy implications are derived. These implications are then contrasted to those of the existing models.

Suggested Citation

Elyasiani, Elyas, The Two Product Banking Firm Under Uncertainty (1983). Southern Economic Journal (1983), pp. 1002-1017, Fox School of Business Research Paper, Available at SSRN:

Elyas Elyasiani (Contact Author)

Temple University - Department of Finance ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-5881 (Phone)
215-204-5698 (Fax)

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