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A Theory of Production for the Financial Firm

Furthermore, if the effects of regulations on user costs are excluded, it is impossible to analyze monetary policy effects. Chapter 2 examines the principal areas of regulation that affect user costs. For example, reserve requirements, as administered by the Federal Reserve, act as a tax on financia...

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Bibliographic Details
Main Author: Hancock, Diana
Format: eBook
Language:English
Published: Dordrecht Springer Netherlands 1991, 1991
Edition:1st ed. 1991
Series:Innovations in Financial Markets and Institutions
Subjects:
Operations Management
Finance
Production Management
Macroeconomics And Monetary Economics
Financial Economics
Macroeconomics
Online Access:
Collection: Springer Book Archives -2004 - Collection details see MPG.ReNa
Table of Contents:
  • 1 Introduction and Summary
  • 1.1 The Need for a Theory of Production for Financial Firms
  • 1.2 Issues in Technology and Regulation
  • 1.3 User Cost Derivation
  • 1.4 A Model of the Financial Firm
  • 1.5 Data and Data Construction
  • 1.6 Specification and Hypothesis Testing
  • 1.7 Empirical Results
  • 2 Issues in Technology and Regulation of Financial Firms
  • 2.1 Introduction
  • 2.2 Cost Function Approach
  • 2.3 Profit Function Approach
  • 2.4 Outputs, Inputs, and the “Classification Problem”
  • 2.5 Regulations and the Financial Firm
  • 2.6 Concluding Remarks
  • 3 User Cost Derivation for Financial Firms
  • 3.1 User Costs for Assets and Liabilities
  • 3.2 Implementation Problems
  • 4 A Model of the Financial Firm
  • 4.1 Introduction
  • 4.2 An Intertemporal Production Model of the Individual Financial Firm
  • 5 Data and Data Construction
  • 5.1 Introduction
  • 5.2 Labor Services
  • 5.3 Materials Services
  • 5.4 Physical Capital Services
  • 5.5 User Costs for Financial Services
  • 5.6 Variable Profits
  • 5.7 Concluding Remarks
  • Appendix Functional Cost Data on Capital
  • 6 Specification and Hypothesis Testing
  • 6.1 Introduction
  • 6.2 Profit Function and Net Supplies
  • 6.3 Regularity Restrictions
  • 6.4 Tests of Bank Technology
  • 6.5 Econometric Issues
  • 6.6 Concluding Remarks
  • Appendix Derivation of Hessian - Variable Profit Function
  • 7 Empirical Results
  • 7.1 Introduction
  • 7.2 Elasticities of Transformation, Demand and Supply
  • 7.3 Regularity Tests
  • 7.4 Estimation of Transformation, Supply and Demand Elasticities
  • 7.5 Rate of Return on Capital
  • 7.6 Policy Implications: Monetary Policy and Bank Behavior
  • 7.7 Tests of Monetary Aggregation
  • 7.8 Concluding Remarks

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