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Measurement of Economies of Scale in Victorian Credit Unions

Author

Listed:
  • Rayna Brown

    (Syme Department of Banking and Finance, Monash University, Caulfield VIC 3145.)

  • Ian O'Connor

    (Senior Author, Department of Accountancy and Law, Victoria University of Technology (Footscray Campus), PO Box 14428 MCMC, Melbourne VIC 8001.)

Abstract

This study on economies of scale in credit unions differs from the only previous Australian study in three important ways: (a) the cost function is derived from the translog production function; (b) estimates of economies of scale are made for four cross†sectional periods, not one; and (c) the total sample of credit unions is divided into subsamples by asset size and bond of association type. Significant diseconomies of scale are found for some subsamples of small credit unions but for most subsamples the null hypothesis of constant returns to scale is not rejected.

Suggested Citation

  • Rayna Brown & Ian O'Connor, 1995. "Measurement of Economies of Scale in Victorian Credit Unions," Australian Journal of Management, Australian School of Business, vol. 20(1), pages 1-24, June.
  • Handle: RePEc:sae:ausman:v:20:y:1995:i:1:p:1-24
    DOI: 10.1177/031289629502000101
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    References listed on IDEAS

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    Cited by:

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    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Size, efficiency, market power, and economies of scale in the African banking sector," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-22, December.
    3. Ralston, Deborah & Wright, April & Garden, Kaylee, 2001. "Can mergers ensure the survival of credit unions in the third millennium?," Journal of Banking & Finance, Elsevier, vol. 25(12), pages 2277-2304, December.
    4. Jackson Njau Waweru & Kennedy M. Waweru & Kenneth L. Wanjau & Josphat K. Kinyanjui, 2017. "Influence of Alternative Financing on the Relationship between Firm Size and Efficiency of Small and Medium Enterprises in Kenya," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 6(6), pages 01-15, October.

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