IDEAS home Printed from https://ideas.repec.org/a/wly/ijfiec/v29y2024i2p2049-2076.html
   My bibliography  Save this article

Returns to scale, spillovers and persistence: A network perspective of U.S. bank size

Author

Listed:
  • Anthony J. Glass
  • Karligash Kenjegalieva

Abstract

The methods for ray‐scale economies (RSE) and expansion‐path scale economies (EPSE) are extended to the dynamic spatial setting. We apply these methods to large U.S. banks using dynamic spatial cost and revenue models and key findings include the following. First, accounting for spillovers and dynamics strengthens the case for EPSE over RSE. Second, own, spillover and total EPSE are very persistent in future periods. Third, the EPSE suggest that an appropriate regulatory size cap would shift one systemically important bank to its contemporaneous optimal scale. However, the EPSE suggest that this would be a sub‐optimal dynamic scale in future periods.

Suggested Citation

  • Anthony J. Glass & Karligash Kenjegalieva, 2024. "Returns to scale, spillovers and persistence: A network perspective of U.S. bank size," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2049-2076, April.
    • Handle: RePEc:wly:ijfiec:v:29:y:2024:i:2:p:2049-2076
    DOI: 10.1002/ijfe.2776
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/ijfe.2776
    Download Restriction: no
    File URL: https://libkey.io/10.1002/ijfe.2776?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:ijfiec:v:29:y:2024:i:2:p:2049-2076. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.interscience.wiley.com/jpages/1076-9307/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.