Are all U.S. credit unions alike?
This paper raises concerns about the econometric approach used in the literature to estimate credit unions’ production technologies. We show that the existing studies did not recognize heterogeneity amongst credit unions’ technologies as captured by (endogenously selected) differing output mixes. Fa...
- Autores:
-
Malikov, Emir
Restrepo, Diego A.
Kumbhakar, Subal C.
- Tipo de recurso:
- Fecha de publicación:
- 2013
- Institución:
- Universidad EAFIT
- Repositorio:
- Repositorio EAFIT
- Idioma:
- eng
- OAI Identifier:
- oai:repository.eafit.edu.co:10784/999
- Acceso en línea:
- http://hdl.handle.net/10784/999
- Palabra clave:
- Credit Union
Returns to Scale
Switching Regressions
Selection
Panel
Fixed Effects
- Rights
- License
- Acceso abierto
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Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees2013-07-11T21:28:28Z2013-04-112013-07-11T21:28:28Zhttp://hdl.handle.net/10784/999C33C34G21This paper raises concerns about the econometric approach used in the literature to estimate credit unions’ production technologies. We show that the existing studies did not recognize heterogeneity amongst credit unions’ technologies as captured by (endogenously selected) differing output mixes. Failure to account for the above leads to biased, inconsistent estimates and potentially misleading results. The estimates are also likely to be biased due to unobserved credit union specific effects that the literature broadly ignores. To address these concerns, we develop a generalized model of endogenous switching with polychotomous choice that is able to account for fixed effects in both the technology selection and the outcome equations. We use this model to estimate returns to scale for the U.S. retail credit unions from 1994 to 2011. Unlike recent studies, we find that not all credit unions enjoy increasing returns to scale. A nonnegligible number of large institutions operate at decreasing returns to scale, indicating that they should either cut back in size or switch to a more efficient technology by re-optimizing the output mix.engUniversidad EAFITEscuela de Economía y FinanzasAre all U.S. credit unions alike?workingPaperinfo:eu-repo/semantics/workingPaperDocumento de trabajo de investigacióndrafthttp://purl.org/coar/version/c_b1a7d7d4d402bccehttp://purl.org/coar/resource_type/c_8042Acceso abiertohttp://purl.org/coar/access_right/c_abf2Credit UnionReturns to ScaleSwitching RegressionsSelectionPanelFixed EffectsMalikov, EmirRestrepo, Diego A.Kumbhakar, Subal C.emalikov@binghamton.edudrestr16@eafit.edu.cokkar@binghamton.eduORIGINAL2013_17_Diego_A_Restrepo_new.pdf2013_17_Diego_A_Restrepo_new.pdfapplication/pdf917666https://repository.eafit.edu.co/bitstreams/41534476-66ee-4e02-9e29-e1b657f796a3/downloade4dfb427982cf8bb6dd5f84c62c35fafMD53LICENSElicense.txtlicense.txttext/plain; charset=utf-8968https://repository.eafit.edu.co/bitstreams/a1fd7750-4f2f-491d-a8c1-873dc8d19d6a/download4cc960a42e07fca3808fbd6b90ab2a1fMD5210784/999oai:repository.eafit.edu.co:10784/9992024-03-05 14:06:17.568open.accesshttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.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 |
dc.title.eng.fl_str_mv |
Are all U.S. credit unions alike? |
title |
Are all U.S. credit unions alike? |
spellingShingle |
Are all U.S. credit unions alike? Credit Union Returns to Scale Switching Regressions Selection Panel Fixed Effects |
title_short |
Are all U.S. credit unions alike? |
title_full |
Are all U.S. credit unions alike? |
title_fullStr |
Are all U.S. credit unions alike? |
title_full_unstemmed |
Are all U.S. credit unions alike? |
title_sort |
Are all U.S. credit unions alike? |
dc.creator.fl_str_mv |
Malikov, Emir Restrepo, Diego A. Kumbhakar, Subal C. |
dc.contributor.author.none.fl_str_mv |
Malikov, Emir Restrepo, Diego A. Kumbhakar, Subal C. |
dc.subject.keyword.eng.fl_str_mv |
Credit Union Returns to Scale Switching Regressions Selection Panel Fixed Effects |
topic |
Credit Union Returns to Scale Switching Regressions Selection Panel Fixed Effects |
description |
This paper raises concerns about the econometric approach used in the literature to estimate credit unions’ production technologies. We show that the existing studies did not recognize heterogeneity amongst credit unions’ technologies as captured by (endogenously selected) differing output mixes. Failure to account for the above leads to biased, inconsistent estimates and potentially misleading results. The estimates are also likely to be biased due to unobserved credit union specific effects that the literature broadly ignores. To address these concerns, we develop a generalized model of endogenous switching with polychotomous choice that is able to account for fixed effects in both the technology selection and the outcome equations. We use this model to estimate returns to scale for the U.S. retail credit unions from 1994 to 2011. Unlike recent studies, we find that not all credit unions enjoy increasing returns to scale. A nonnegligible number of large institutions operate at decreasing returns to scale, indicating that they should either cut back in size or switch to a more efficient technology by re-optimizing the output mix. |
publishDate |
2013 |
dc.date.available.none.fl_str_mv |
2013-07-11T21:28:28Z |
dc.date.issued.none.fl_str_mv |
2013-04-11 |
dc.date.accessioned.none.fl_str_mv |
2013-07-11T21:28:28Z |
dc.type.eng.fl_str_mv |
workingPaper info:eu-repo/semantics/workingPaper |
dc.type.coarversion.fl_str_mv |
http://purl.org/coar/version/c_b1a7d7d4d402bcce |
dc.type.coar.fl_str_mv |
http://purl.org/coar/resource_type/c_8042 |
dc.type.local.spa.fl_str_mv |
Documento de trabajo de investigación |
dc.type.hasVersion.eng.fl_str_mv |
draft |
dc.identifier.uri.none.fl_str_mv |
http://hdl.handle.net/10784/999 |
dc.identifier.jel.none.fl_str_mv |
C33 C34 G21 |
url |
http://hdl.handle.net/10784/999 |
identifier_str_mv |
C33 C34 G21 |
dc.language.iso.eng.fl_str_mv |
eng |
language |
eng |
dc.rights.coar.fl_str_mv |
http://purl.org/coar/access_right/c_abf2 |
dc.rights.local.spa.fl_str_mv |
Acceso abierto |
rights_invalid_str_mv |
Acceso abierto http://purl.org/coar/access_right/c_abf2 |
dc.coverage.spatial.eng.fl_str_mv |
Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees |
dc.publisher.spa.fl_str_mv |
Universidad EAFIT |
dc.publisher.department.spa.fl_str_mv |
Escuela de Economía y Finanzas |
institution |
Universidad EAFIT |
bitstream.url.fl_str_mv |
https://repository.eafit.edu.co/bitstreams/41534476-66ee-4e02-9e29-e1b657f796a3/download https://repository.eafit.edu.co/bitstreams/a1fd7750-4f2f-491d-a8c1-873dc8d19d6a/download |
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repository.name.fl_str_mv |
Repositorio Institucional Universidad EAFIT |
repository.mail.fl_str_mv |
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