A bank panic is an expectation-driven redemption event that results in a self-fulfilling prophecy of losses on demand deposits. From the standpoint of theory in the tradition of Diamond and Dybvig (1983) and Green and Lin (2003), it is surprisingly diffi cult to generate bank panic equilibria if one allows for a plausible degree of contractual flexibility. A common assumption employed in the st...

Article history: Received 18 September 2014 Received in revised form 24 September 2014 Accepted 15 October 2014 Available online 20 October 2014 This paper investigates product-specific scale economies of banks with respect to off-balance sheet operations. The cost benefits from the non-separability of outputs available to banks that imply the role of OBS activities on bank scale economies are ...

Abstract Many of air cargo companies adapt the hub-and-spokes system where economies of scale exist in the transportation cost. In this paper, we formulate economies of scale using nonlinear cost function of distances and demands, and analyze how the change of the transportation cost affects single hub location of air cargo using the generalized Weber problem on the regular demand points of one...

Economies of Scale in European Manufacturing Revisited* We test for internal and external economies of scale in European manufacturing, employing a more disaggregated data set than has been used in earlier analyses. We aim to separate externalities from common business cycle effects. Fifteen European manufacturing industries in France, Germany, Italy and the UK are analysed. We focus on economi...

In the traditional treatment, economies of scale are attributed to a hodgepodge of sources. A typical list might include Adam Smith's famous "division of labour," economies of large machines, the integration of processes, massed reserves, and standardization. The list can be partly systematized because, when considered in detail, these various economies are themselves the result of various othe...