Intermediation costs in an agricultural development bank: a cost-function approach to measuring scale economies

The cost-output relationships and production technology in the Agricultural Development Bank of Honduras are analyzed using a translog model. Scale economies for the average branch are not significantly different from one. They are a function of output levels reflecting U-shaped cost surfaces. Produ...

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Veröffentlicht in:American journal of agricultural economics 1988-05, Vol.70 (2), p.273-280
1. Verfasser: Cuevas, C.E
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description The cost-output relationships and production technology in the Agricultural Development Bank of Honduras are analyzed using a translog model. Scale economies for the average branch are not significantly different from one. They are a function of output levels reflecting U-shaped cost surfaces. Product-specific economies of scale are substantially different. Returns to scale of lending activities approach unity, whereas there are important unexploited economies to the expansion of deposit mobilization. Cost complementarities between lending and deposit mobilization indicate advantages of joint provision of financial services over the traditional specialization in lending of agricultural development banks in developing countries.
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Cost complementarities between lending and deposit mobilization indicate advantages of joint provision of financial services over the traditional specialization in lending of agricultural development banks in developing countries.</description><subject>ACTIVIDAD BANCARIA</subject><subject>ACTIVITE BANCAIRE</subject><subject>agricultural development banks</subject><subject>ANALISIS DE COSTOS</subject><subject>ANALISIS DE INSUMO-PRODUCTO</subject><subject>ANALYSE DES COUTS</subject><subject>ANALYSE INPUT OUTPUT</subject><subject>BANCOS DE DESARROLLO</subject><subject>Bank loans</subject><subject>BANQUE DE DEVELOPPEMENT</subject><subject>Commercial production</subject><subject>Cost estimates</subject><subject>Cost functions</subject><subject>COSTOS DE PRODUCCION</subject><subject>COUT DE PRODUCTION</subject><subject>DESARROLLO AGRICOLA</subject><subject>Development banks</subject><subject>DEVELOPPEMENT AGRICOLE</subject><subject>ECONOMIA</subject><subject>Economic 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Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Cuevas, C.E</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Intermediation costs in an agricultural development bank: a cost-function approach to measuring scale economies</atitle><jtitle>American journal of agricultural economics</jtitle><addtitle>American Journal of Agricultural Economics</addtitle><date>1988-05</date><risdate>1988</risdate><volume>70</volume><issue>2</issue><spage>273</spage><epage>280</epage><pages>273-280</pages><issn>0002-9092</issn><eissn>1467-8276</eissn><abstract>The cost-output relationships and production technology in the Agricultural Development Bank of Honduras are analyzed using a translog model. Scale economies for the average branch are not significantly different from one. They are a function of output levels reflecting U-shaped cost surfaces. Product-specific economies of scale are substantially different. Returns to scale of lending activities approach unity, whereas there are important unexploited economies to the expansion of deposit mobilization. Cost complementarities between lending and deposit mobilization indicate advantages of joint provision of financial services over the traditional specialization in lending of agricultural development banks in developing countries.</abstract><cop>Menasha, Wis</cop><pub>Oxford University Press</pub><doi>10.2307/1242067</doi><tpages>8</tpages></addata></record>
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source Oxford University Press Journals Digital Archive legacy; Periodicals Index Online; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; EZB-FREE-00999 freely available EZB journals
subjects ACTIVIDAD BANCARIA
ACTIVITE BANCAIRE
agricultural development banks
ANALISIS DE COSTOS
ANALISIS DE INSUMO-PRODUCTO
ANALYSE DES COUTS
ANALYSE INPUT OUTPUT
BANCOS DE DESARROLLO
Bank loans
BANQUE DE DEVELOPPEMENT
Commercial production
Cost estimates
Cost functions
COSTOS DE PRODUCCION
COUT DE PRODUCTION
DESARROLLO AGRICOLA
Development banks
DEVELOPPEMENT AGRICOLE
ECONOMIA
Economic costs
ECONOMIE
Economies of scale
Elasticity of demand
financial intermediation costs
HONDURAS
Loans
Marginal costs
MODELE
MODELOS
PAISES EN DESARROLLO
PAYS EN DEVELOPPEMENT
PRESTAMOS
PRETS
PRODUCCION
PRODUCTION
scale economies
TECHNOLOGIE
TECNOLOGIA
translog model
title Intermediation costs in an agricultural development bank: a cost-function approach to measuring scale economies
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