The structure of technology in a multioutput branch banking firm

Moshe Kim, Uri Ben Zion

Research output: Contribution to journalArticlepeer-review


We formulate and estimate a multioutput bank’s cost function amenable for distinguishing between economies of scale and economies of network density. We find significant returns to network density, especially for smaller banks. Diseconomies of scale are found for the larger banks, whereas the hypothesis of constant returns to scale could not be rejected for the smaller banks.

Original languageEnglish
Pages (from-to)489-496
Number of pages8
JournalJournal of Business and Economic Statistics
Issue number4
StatePublished - Oct 1989


  • Density
  • Scale
  • Scope

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty


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