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Scale economies and technological change in Federal Reserve ACH payment processing

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Author Info
Paul W. Bauer
Diana Hancock

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Abstract

An analysis of the contribution of scale economies, technological change, and falling input prices to the absolute reduction in the real processing costs of an ACH transfer over the 1979-94 period.

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Article provided by Federal Reserve Bank of Cleveland in its journal Economic Review.

Volume (Year): (1995)
Issue (Month): Q III ()
Pages: 14-29
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:fip:fedcer:y:1995:i:qiii:p:14-29

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Keywords: Clearinghouses (Banking)

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Roberts, Kevin W S, 1979. "Welfare Considerations of Nonlinear Pricing," Economic Journal, Royal Economic Society, vol. 89(353), pages 66-83, March. [Downloadable!] (restricted)
  2. Scott E. Knudson & Jack K. Walton II & Florence M. Young, 1994. "Business-to-business payments and the role of financial electronic data interchange," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Apr, pages 269-278.
  3. Baumol, William J & Bradford, David F, 1970. "Optimal Departures from Marginal Cost Pricing," American Economic Review, American Economic Association, vol. 60(3), pages 265-83, June. [Downloadable!] (restricted)
  4. Hagen, Kare P. & Sheshinski, Eytan, 2005. "Positive second-best theory: A brief survey of the theory of ramsey pricing," Handbook of Mathematical Economics, in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 2, volume 3, chapter 25, pages 1251-1280 Elsevier. [Downloadable!] (restricted)
  5. Oi, Walter Y, 1971. "A Disneyland Dilemma: Two-Part Tariffs for a Mickey Mouse Monopoly," The Quarterly Journal of Economics, MIT Press, vol. 85(1), pages 77-96, February. [Downloadable!] (restricted)
  6. David B Humphrey, 1982. "Costs, scale economies, competition, and product mix in the U.S. payments mechanism," Staff Studies 115, Board of Governors of the Federal Reserve System (U.S.).
  7. Gary C. Zimmerman, 1981. "The pricing of Federal Reserve services under MCA," Economic Review, Federal Reserve Bank of San Francisco, issue Win, pages 22-40. [Downloadable!]
  8. Paul W. Bauer, 1993. "Efficiency and technical progress in check processing," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 24-38. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Malkamäki , Markku & Topi, Jukka, 1999. "Strategic Challenges for Exchanges and Securities Settlement," Research Discussion Papers 21/1999, Bank of Finland. [Downloadable!]
  2. Joanna Stavins, 1997. "A comparison of social costs and benefits of paper check presentment and ECP with truncation," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 27-44. [Downloadable!]
  3. Joanna Stavins & Paul W. Bauer, 1997. "The effect of pricing on demand and revenue in Federal Reserve ACH payment processing," Working Papers 97-6, Federal Reserve Bank of Boston. [Downloadable!]
    Other versions:
  4. Khiaonarong, Tanai, 2003. "Payment systems efficiency, policy approaches, and the role of the central bank," Research Discussion Papers 1/2003, Bank of Finland. [Downloadable!]
  5. Tanai Khiaonarong, 2004. "Payment systems efficiency, policy approaches, and the role of the central bank," Finance 0405004, EconWPA. [Downloadable!]
  6. Joanna Stavins & Paul W. Bauer, 1997. "The effect of pricing on demand and revenue in Federal Reserve ACH payment processing," Financial Services working paper 97-01, Federal Reserve Bank of Cleveland. [Downloadable!]
  7. Kirstin E. Wells, 1996. "Are checks overused?," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Fall, pages 2-12. [Downloadable!]
  8. Joanna Stavins, 2002. "Effect of consumer characteristics on the use of payment instruments," New England Economic Review, Federal Reserve Bank of Boston, issue Q 3, pages 19-31. [Downloadable!]
  9. Robert M. Adams & Paul W. Bauer & Robin C. Sickles, 2002. "Scale economies, scope economies, and technical change in Federal Reserve payment processing," Finance and Economics Discussion Series 2002-57, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
    Other versions:
  10. Malkamäki, Markku, 1999. "Are there Economies of Scale in Stock Exchange Activities?," Research Discussion Papers 4/1999, Bank of Finland. [Downloadable!]
  11. Robert M. Adams & Paul W. Bauer & Robin C. Sickles, 2002. "Scope and scale economies in Federal Reserve payment processing," Working Paper 0213, Federal Reserve Bank of Cleveland. [Downloadable!]
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