The Experts below are selected from a list of 87 Experts worldwide ranked by ideXlab platform
David B. Humphrey - One of the best experts on this subject based on the ideXlab platform.
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The Role of Fixed Costs and Cost Complementarities in Determining Scope Economies and the Cost of Narrow Banking Proposals
The Journal of Business, 1993Co-Authors: Lawrence B. Pulley, David B. HumphreyAbstract:'Narrow' banking proposals would separate insured deposits from most types of bank lending. Using data from large U.S. banks, the authors examine the extent to which narrow banking proposals are likely to result in increased production Costs. Production Costs will rise for nonjoint provision of deposit and loan services if there are Cost complementarities in producing the two outputs jointly or if joint production enables banks to spread their fixed Costs more effectively. Unlike standard Cost function approaches, the authors' methods allow them to estimate the fixed-Cost and Cost-Complementarity effects separately. They find the net production Cost consequences of narrow banking to be negligible. Copyright 1993 by University of Chicago Press.
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Scope economies: fixed Costs, Complementarity, and functional form
SSRN Electronic Journal, 1991Co-Authors: Lawrence B. Pulley, David B. HumphreyAbstract:Bank scope economies have been derived from either the standard or generalized (Box-Cox) multiproduct translog (or other logarithmic) functional form. Reported results have ranged from strong economies to diseconomies and are far from conclusive. The problem is functional form. An alternative composite form is shown to yield stable SCOPE results both at the usual point of evaluation and for points associated with quasi-specialized production (QSCOPE). Unstable results are obtained for the other forms. Scope economies are shown to exist for large U.S. banks in 1988 and to depend on the number of banking outputs specified. The scope estimates are also separated into their two sources - fixed-Cost and Cost-Complementarity effects.
Lawrence B. Pulley - One of the best experts on this subject based on the ideXlab platform.
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The Role of Fixed Costs and Cost Complementarities in Determining Scope Economies and the Cost of Narrow Banking Proposals
The Journal of Business, 1993Co-Authors: Lawrence B. Pulley, David B. HumphreyAbstract:'Narrow' banking proposals would separate insured deposits from most types of bank lending. Using data from large U.S. banks, the authors examine the extent to which narrow banking proposals are likely to result in increased production Costs. Production Costs will rise for nonjoint provision of deposit and loan services if there are Cost complementarities in producing the two outputs jointly or if joint production enables banks to spread their fixed Costs more effectively. Unlike standard Cost function approaches, the authors' methods allow them to estimate the fixed-Cost and Cost-Complementarity effects separately. They find the net production Cost consequences of narrow banking to be negligible. Copyright 1993 by University of Chicago Press.
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Scope economies: fixed Costs, Complementarity, and functional form
SSRN Electronic Journal, 1991Co-Authors: Lawrence B. Pulley, David B. HumphreyAbstract:Bank scope economies have been derived from either the standard or generalized (Box-Cox) multiproduct translog (or other logarithmic) functional form. Reported results have ranged from strong economies to diseconomies and are far from conclusive. The problem is functional form. An alternative composite form is shown to yield stable SCOPE results both at the usual point of evaluation and for points associated with quasi-specialized production (QSCOPE). Unstable results are obtained for the other forms. Scope economies are shown to exist for large U.S. banks in 1988 and to depend on the number of banking outputs specified. The scope estimates are also separated into their two sources - fixed-Cost and Cost-Complementarity effects.
Franck Portier - One of the best experts on this subject based on the ideXlab platform.
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When Can Changes in Expectations Cause Business Cycle Fluctuations
2020Co-Authors: Franck Portier, Paul BeaudryAbstract:ABSTRACT Business cycle fluctuations are generally associated with positive co-movement between consumption, investment and employment. In this paper we examine when such positive co-movement can arise in market settings as the result of changes in expectations. We show that most of the standard neo-classical models used in the macro literature can not support such phenomena; but that such phenomena is possible in a perfect market setting if multi-product firms are present. The key characteristic which we isolate as giving rise to the possibility of expectation driven fluctuations is that intermediate good producers exhibit internal Cost Complementarity when supplying goods to different sectors of the economy. Our analysis thereby identifies technological conditions under which business cycles may arise as a purely demand driven phenomena, as in traditional Keynesian models, without the need to invoke any market imperfections such as sticky prices, imperfect competition, increasing returns to scale or externatilities. In this sense, our analysis offers a potentially robust explanation to why market economies may exhibit business cycle fluctuations driven by changes in expectations.
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"News" Shocks in International Business Cycles
2006Co-Authors: Martial Dupaigne, Franck PortierAbstract:This paper studies co-movement in economic aggregates at the national and international level. At the national level, consumption, investment and hours worked display positive co-movement across the business cycle. Technology shocks, which directly affect the real wage rate, can drive consumption and hours worked in the same direction although consumption and leisure are both normal goods. At the international level, business cycles are substantially synchronized. The well-known first order effect of a technology shock is to reallocate production factor across countries, leading to strong negative co-movements between investments or between outputs. Such predictions are at odds with observed international fluctuations. We investigate whether observed co-movements can be accounted for by the changes in expectations emphasized in Beaudry & Portier [2004,2005]. Previous results have established the conditions under which expectations-driven business cycle fluctuations may arise in neo-classical settings, namely a Cost Complementarity. We extend this Complementarity to a multi-country model, and show that they can lead to international expectations-driven business cycles.
Subal C. Kumbhakar - One of the best experts on this subject based on the ideXlab platform.
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A multiproduct Symmetric Generalized McFadden Cost function
Journal of Productivity Analysis, 1994Co-Authors: Subal C. KumbhakarAbstract:This paper introduces a flexible multiproduct Cost function that permits zero values of one or more of the outputs and can impose restrictions quite easily, if not automatically satisfied, to ensure global concavity property. It satisfies linear homogeneity (in prices) property and is flexible in the output space. Thus the function is ideal for estimating, for example, economies of scope, Cost Complementarity, product-specific returns to scale, etc., without worrying about zero values of output(s) and extrapolations to points far from the point of approximation. As an empirical application, we use panel data (1978–1985) on 12 Finnish foundry plants to estimate technical progress, overall returns to scale, product-specific returns to scale and economies of scope.
Keith Gilsdorf - One of the best experts on this subject based on the ideXlab platform.
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vertical integration efficiencies and electric utilities a Cost Complementarity perspective
The Quarterly Review of Economics and Finance, 1994Co-Authors: Keith GilsdorfAbstract:Abstract This article analyzes the effect of vertical integration on electric utility Cost structure by testing for Cost complementarities between generation, transmission, and distribution. Cost complementarities would transfer monopoly features commonly associated with transmission and distribution to generation and, thus, preclude competition. The study estimates a multiproduct translog Cost function and finds no evidence of Cost Complementarity, although each stage exhibits increasing returns to scale at the point of approximation. These results suggest that, if regulators wish to promote competition in generation, they must include policies which expand generation markets beyond a utility's franchise service territory.
