Article ID Journal Published Year Pages File Type
5091247 Journal of Banking & Finance 2006 22 Pages PDF
Abstract
An “output characteristics” cost function is used to identify payment sources of technical change in European banking and estimate associated benefits. As the share of electronic payments in 12 European countries rose from 0.43 in 1987 to 0.79 in 1999 and ATMs expanded while the number of branch offices was constant, bank operating costs are $32 billion lower than they otherwise might have been, saving 0.38% of the 12 nations' GDP. Policies facilitating these changes (antitrust exemptions to weakly coordinate implementation of payment service pricing) would permit benefits to be more fully realized.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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