Papers in Regional Science - 2023 - Glass - Dynamic returns to scale and geography in U S banking (1).pdf (1.68 MB)
Download fileDynamic returns to scale and geography in U.S. banking
journal contribution
posted on 2023-03-22, 14:00 authored by Anthony Glass, Karligash GlassKarligash GlassWe observe spatial cost dependence among medium-sized and large U.S. banks (1998Q1-2020Q4). We contribute to the literature by accounting for this using an accessible dynamic spatial econometric cost model. For a movement along a bankís output expansion-path we calculate the cost returns that spillover to/from the bank. The noticeable impacts of the 2020 COVID pandemic are on the spillover cost returns and not the own returns. These spillover returns suggest the pandemic led to the smallest (largest) banks becoming sub-optimally smaller (bigger). A number of banks with high-ranking spillover returns have geographically concentrated branches and/or specialize in particular activities.
History
School
- Business and Economics
Department
- Business
Published in
Papers in Regional ScienceVolume
102Issue
1Pages
53-85Publisher
WileyVersion
- VoR (Version of Record)
Rights holder
© The AuthorsPublisher statement
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs https://creativecommons.org/licenses/by-nc-nd/4.0/ License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.Acceptance date
2022-12-21Publication date
2023-01-27Copyright date
2023ISSN
1056-8190eISSN
1435-5957Publisher version
Language
- en