Economies of scale and the demand for money

Cross-sectional data from four Surveys of Small Business Finance demonstrate that economies of scale in money holding exist, that these economies appear to be increasing over time, and that the magnitudes are greater than those estimated for large US corporations. Firms not practising several specif...

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Veröffentlicht in:Small business economics 2010-10, Vol.35 (3), p.283-298
Hauptverfasser: Natke, Paul A., Falls, Gregory A.
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description Cross-sectional data from four Surveys of Small Business Finance demonstrate that economies of scale in money holding exist, that these economies appear to be increasing over time, and that the magnitudes are greater than those estimated for large US corporations. Firms not practising several specific cash management techniques and firms facing constraints in the credit market hold lower money balances. Minority-owned firms exhibit economies of scale similar to the overall sample but cash management practices and credit constraint variables generally do not influence their money holding behavior. Scale economies vary widely across industries but overall means are relatively stable over time.
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subjects Business and Management
Business management
Business structures
Cash
Cash management
Coefficients
Commercial credit
Credit
Credit market
Demand for money
Economic growth
Economies of scale
Elasticity
Entrepreneurship
Estimation
Financial management
GDP
Gross Domestic Product
Industrial Organization
Industry
Management
Microeconomics
Money
Money demand
Small and medium sized enterprises
Small business
Small businesses
Stock exchanges
Studies
U.S.A
title Economies of scale and the demand for money
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