Are Scale Economies in Banking Elusive or Illusive

By Joseph P. Hughes, Loretta J. Mester, Choon-Geol Moon. 2001

183 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/8c6f99ec69733ad60acc69f1e656a69131bcd9b6

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Citations in the corpus

Consolidation in the U.S. Banking Industry: Is the Long, Strange Trip About to End? (2005, unknown): “Hughes, Mester, and Moon (2001); Hughes, Lang, Claimed to have found evidence of large-scale Mester, and Moon (1999); Hughes and Mester economies once risk diversification, capital (1998) structure, and endogenous risk taking were explicitly considered in the analyses of production.”
Do Large Banks have Lower Costs? New Estimates of Returns to Scale for U.S. Banks (2009, unknown): “For example, Hughes et al. (2001) estimate returns to scale within the context of a value maximization model that explicitly incorporates the capital structure and risk-taking preferences of individual banks.”
Examining the Relationships between Capital, Risk and Efficiency in European Banking (2007, unknown): “Big banks, typically hold less capital than smaller banks, they may also be more diversified and gain from other size advantages (Peltzman, 1984; Hughes et al., 2001) so it is important to control for this factor.”
Risk in Islamic Banking (2012, background): “Large banks can benefit from both scale economies and diversification as claimed by Hughes et al. (2001).”
Finance-Growth Nexus and Dual-Banking Systems: Relative Importance of Islamic Banks (2016, background): “Larger banks can benefit from scale economies and diversification (Hughes et al., 2001).”
Do European Primarily Internet Banks Show Scale and Experience Efficiencies (2007, unknown): “Using these empirical models, Hughes et al. (2001) have found scale economies for the largest banks in the United States.”
Bank supervision, regulation, and efficiency: evidence from the European Union (2012, background): “…influence efficiency levels as big banks are able to hold less capital compared to their smaller counterparts, and may also be able to have greater portfolio and loan diversification and gain from size advantages (Hughes et al., 2001; Yildirim and Philippatos, 2007; Altunbas et al., 2007).”
Determining management behaviour in European banking (2004, background): “The mean ratio of 9 For a discussion of the case for specifying asset quality and risk as arguments in cost functions see McAllister and McManus (1993), Mester (1996), Berger and Mester (1997), and Hughes et al. (2001).”
Crisis-Related Shifts in the Market Valuation of Banking Activities (2012, unknown): “They also may have more market power (e.g., Berger et al., 1999), enjoy scale economies (e.g., Stiroh, 2000; Hughes et al., 2001) or scope (e.g., Demsetz and Strahan, 1997), or benefit from increased diversification (e.g., Penas and Unal, 2004).”
Who Said Large Banks Don't Experience Scale Economies? Evidence from a Risk-Return-Driven Cost Function (2013, unknown): “…all sizes included in the sample.1 These studies include Hughes, Lang, Mester, and Moon (1996, 2000), Berger and Mester (1997), Hughes and Mester (1998), Hughes, Mester, and Moon (2001), Bossone and Lee (2004), Wheelock and Wilson 1 See Mester (2010) and Hughes (forthcoming) for further discussion.”