The cost functions of Credit Unions in N.S.W. are examined with a view to determining the existence of scale economies. Cost functions were estimated on pooled data for 1979–1980 assuming the underlying production function is Cobb-Douglas. The study tentatively established nonexistence of scale economies, however significant cost advantages were obtained by those credit unions which had greater involvement with technology.
Aigner, D. J., 1971, Basic Econometrics (Prentice-Hall, Englewood Cliffs, N.J.).
2.
Australian Financial System Inquiry, 1981, Final Report, A.G.P.S., September.
3.
Benston, G. J., 1972, “Economies of Scale of Financial Institutions”, Journal of Money, Credit and Banking, 4, 312–341.
4.
Crapp, H. R., 1982, “Scale Economies in the N.S.W. Permanent Building Society”, Australian Journal of Management, 7, 33–48.
5.
Elstone, R. G., 1980, “Returns to Scale in the Building Society Industry”, Accounting and Finance, 20, 53–70.
6.
Friedman, M., 1955, Business Concentration and Price Policy (Princeton University Press).
7.
Fry, C. L., C.P. Harper and S.R. Stansell, 1982, “An Analysis of Credit Union Costs of Financial Institutions”, Journal of Bank Research, 12, 239–249.
8.
Geehan, R., 1977, “Returns to Scale in the Life Insurance Industry”, Bell Journal of Economics, 8, 497–514.
9.
Johnston, J., 1972, Econometric Methods (McGraw-Hill, New York).
10.
Koutsoyiannis, A., 1977, Theory of Econometrics, 2nd ed. (Macmillan, London).
11.
Koot, R. S., 1978, “On Economies of Scale in Credit Unions”, Journal of Finance, 33, 1087–1094.
12.
Mullineaux, D. A., 1978, “Economies of Scale and Organisational Efficiency in Banking: A Profit Function Approach”, Journal of Finance, 33, 259–280.
13.
Murray, J.D. and R.W. White, 1980, “Economies of Scale and Deposit-Taking Financial Institutions in Canada”, Journal of Money, Credit and Banking, 12, 58–70.
14.
Rosser, B., 1980, “Economies of Scale in Australian Life Insurance: Some Further Evidence”, unpublished research manuscript, October, Kuring-gai College of Advanced Education.
15.
Taylor, R. A., 1972, “Economies of Scale in Large Credit Unions”, Applied Economics, 4, 33–40.
16.
Wolken, J.D. and F.J. Navratil, 1980, “Economies of Scale in Credit Unions: Further Evidence”, Journal of Finance, 35, 769–777.
