Glass, A.J. orcid.org/0000-0002-5984-7666 and Kenjegalieva, K. (2023) Dynamic returns to scale and geography in U.S. banking. Papers in Regional Science, 102 (1). pp. 53-86. ISSN 1056-8190
Abstract
We observe spatial cost dependence among medium-sized and large U.S. banks (1998Q1–2020Q4). We contribute to the literature by accounting for this using an accessible dynamic spatial econometric cost model. For a movement along a bank's output expansion path, we calculate the cost returns that spillover to/from the bank. The noticeable impacts of the 2020 COVID pandemic are on the spillover cost returns and not the own returns. These spillover returns suggest the pandemic led to the smallest (largest) banks becoming suboptimally smaller (bigger). A number of banks with high-ranking spillover returns have geographically concentrated branches and/or specialize in particular activities.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Authors. Papers in Regional Science published by John Wiley & Sons Ltd on behalf of Regional Science Association International. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, (http://creativecommons.org/licenses/by-nc-nd/4.0/) which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. |
Keywords: | Branch networks; Overlapping geographical operations; Bank cost interdependence; Spill-ins and spill-outs |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 04 Jan 2023 10:30 |
Last Modified: | 27 Sep 2024 10:51 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/pirs.12713 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:194723 |
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Licence: CC-BY-NC-ND 4.0