2006/3 Measuring Scale Economies in a Heterogeneous Industry: The Case of European Settlement Institutions

by Patrick Van Cayseele and Christophe Wuyts


Measuring Scale Economies in a Heterogeneous Industry: The Case of European Settlement Institutions
Patrick Van Cayseele and Christophe Wuyts, Vienna, 2006, ISBN 978-3-902109-33-0

Abstract
We examine whether the European settlement institutions are technically efficient. This is done by means of estimating a translog cost function, and investigating whether scale economies are fully exploited. Since the sample is quite heterogeneous, fixed effects regression is introduced. From the results obtained, there clearly are economies of scale in this industry throughout all output ranges. This implies that further consolidation in this industry probably is ahead.

Chapters

Introduction
The European clearing, settlement and safekeeping industry
Review of the literature
The model
Data
Estimation results
Conclusion

 SUERF Study 2006/3

 

Additional Info

  • Keywords: Technical Efficiency in Settlement and Safekeeping, Estimating Cost Functions on Panel Data, Sample Heterogeneity and Fixed Effects
  • JEL Codes: C8, D2, G2, L8
  • ISBN No.: 978-3-902109-33-0
  • Authors: Patrick Van Cayseele and Christophe Wuyts
back to top