Stephen Timme - Academia.edu (original) (raw)

Papers by Stephen Timme

Journal of Money, Credit and Banking, 1990

MUCH PROGRESS HAS BEEN MADE toward understanding the production economics of small banks in the U... more MUCH PROGRESS HAS BEEN MADE toward understanding the production economics of small banks in the United States. Analysts, employing improved statistical methodologies and measurement techniques, have produced an impressive body of results about which ...

Journal of Money, Credit and Banking, 1986

... The holding company variable H is a dummy variable assigned a value of one 8See Avery (1977) ... more ... The holding company variable H is a dummy variable assigned a value of one 8See Avery (1977) for a more detailed discussion of the error term's composition, and an analysis of the covariance matrix of the errors. Page 8. WILLIAM C. HUNTER AND STEPHEN G. TIMME : 159 ...

Journal of Money, Credit and Banking, 1995

NUMEROUS STUDIES HAVE EMPLOYED multiproduct flexible functional forms to examine the structure of... more NUMEROUS STUDIES HAVE EMPLOYED multiproduct flexible functional forms to examine the structure of bank cost and production functions. In general, these studies show that estimates of bank cost characteristics are fairly robust to changes in the definition of inputs ...

Insurance: Mathematics and Economics, 1993

ABSTRACT This article examines technological change, its relationship to firm size, and its impac... more ABSTRACT This article examines technological change, its relationship to firm size, and its impact on the efficient scale of output and product mix for large U.S. commercial banks. The results suggest that technological change lowered real costs by about one percent per year, increased the cost-minimizing scale of outputs, and affected product mix. The authors do not find support for the Galbraith-Schumpeter hypothesis. This suggests that the largest banks cannot use innovation alone to outpace smaller banks. The major implications are that public policies allowing freer banking combinations do not necessarily run counter to the public interest. Copyright 1991 by University of Chicago Press.

Applied Economics, 1992

ABSTRACT In this paper, we conduct an international comparison of bank production and technologic... more ABSTRACT In this paper, we conduct an international comparison of bank production and technological characteristics. The comparison is performed using novel evidence on changes in labour demand over the period 1980–89 for banks headquartered in Canada, France, West Germany, Italy, Japan and the United States. The results suggest that there is relatively low substitutability of labour for capital in the production process of these banking organizations. Significant scale economies were found with regards to the expansion of output and the concomitant increase in labour. In addition, technological change operated to lower the quantity of inputs needed to produce a given level of outputs and increased the minimum efficient-size bank over the sample period. Many of the production characteristics and technology effects varied significantly across countries. These findings imply that intercountry differences in production characteristics and technological change should be explicitly recognized in bank strategic planning, in the establishment of domestic regulation, and in the coordination of international bank regulation. This is of particular interest to managers and regulators alike since the establishement of a ‘level playing field’ has often been stated as a major goal of changes in bank regulation.

Managerial Finance, 1997

This paper provides novel empirical evidence on the impact of bank internal organization structur... more This paper provides novel empirical evidence on the impact of bank internal organization structure characteristics on costs and productive efficiency. The specific internal organization characteristics examined include centralized versus decentralized 1) decision‐making, 2) service delivery systems, and 3) back‐office operations, e.g. accounting, computing, and advertising, among others. The analysis is conducted using average data drawn from a sample of 118 large US commercial banks for the years 1989 and 1990. The analysis reveals that centralized decision‐making tends to increase costs. Likewise, centralized service delivery systems either increase or have an insignificant impact on costs. In no case was it found that centralized service delivery systems reduce costs as is often envisioned by proponents of centralization. Centralized back‐office operations were found to reduce costs significantly and is consistent with the existence of scale economies in bank back‐office operations.

Supply Chain Management Review, Jul 1, 2003

Journal of Banking & Finance, 1993

This introductory article reviews past research on the topic of financial institution efficiency,... more This introductory article reviews past research on the topic of financial institution efficiency, surveys the contributions in this special issue, and suggests how future research on this important topic might proceed.

Journal of Financial Research, 1991

... By examining contagion effects in an environment void of explicit deposit insurance, this stu... more ... By examining contagion effects in an environment void of explicit deposit insurance, this study ... insights should also be provided into debates concerning the role and reform of deposit ... bank failure causes significant negative stock price reactions within the banking industry; yet ...

Journal of Financial Research, 1984

The Financial Review, 1979

The Financial Review, 1982