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Does Banking Consolidation Lead To Efficiency Gains? Evidence From Large Commercial Banks In Europe And Us

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Author Info
Bernardo Maggi
Stefania P S Rossi
Abstract

This article aims at investigating the efficiency of European and US commercial banks. Scale and scope economies indicators, as well as a measurement of X-efficiency are derived from three cost functions: Fourier flexible form, translog and Box-Cox. This allows checking the stability and the robustness of the evidence across the different specifications. Our results over the period 1995-98 show that overall the largest banks do not seem to have higher efficiency scores. Therefore, further enlargement of the production size does not necessarily lead to production gains.

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Publisher Info
Article provided by Icfai Press in its journal The Icfai University Journal of Bank Management.

Volume (Year): V (2006)
Issue (Month): 2 (May)
Pages: 7-35
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Handle: RePEc:icf:icfjbm:v:5:y:2006:i:2:p:7-35

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For technical questions regarding this item, or to correct its listing, contact: (Prof. Venkata Seshaih).

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This page was last updated on 2009-12-2.


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