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Scale Efficiency in Canadian Trust Companies

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  • Jon Breslaw
  • James McIntosh

Abstract

A new method for estimating a relative scale function is derived which does not require the specification or estimation of the firm's cost function. The method is applied to a panel of Canadian trust companies for the years 1985–1988. Results show that the industry scale function is convex with respect to firm size, as measured by the firm's assets. The method avoids a number of shortcomings associated with traditional studies of scale economies in financial institutions. Copyright Kluwer Academic Publishers 1997

Suggested Citation

  • Jon Breslaw & James McIntosh, 1997. "Scale Efficiency in Canadian Trust Companies," Journal of Productivity Analysis, Springer, vol. 8(3), pages 281-292, August.
    • Handle: RePEc:kap:jproda:v:8:y:1997:i:3:p:281-292
    DOI: 10.1023/A:1007707721582
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    References listed on IDEAS

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    Cited by:

    1. Danny Leung & Terence Yuen, 2007. "Labour Market Adjustments to Exchange Rate Fluctuations: Evidence from Canadian Manufacturing Industries," Open Economies Review, Springer, vol. 18(2), pages 177-189, April.
    2. Andrea Pulcini & Damiano Montani & Daniele Gervasio, 2022. "Trusts in Business Research: A Concise Systematic Literature Review," International Business Research, Canadian Center of Science and Education, vol. 15(8), pages 1-20, August.
    3. Jason Allen & Ying Liu, 2007. "Efficiency and economies of scale of large Canadian banks," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 40(1), pages 225-244, February.
    4. Amel, Dean & Barnes, Colleen & Panetta, Fabio & Salleo, Carmelo, 2004. "Consolidation and efficiency in the financial sector: A review of the international evidence," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2493-2519, October.

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