Measurement of Economies of Scale in Victorian Credit Unions

Brown, Rayna; O’Connor, Ian

doi:10.1177/031289629502000101

Cited by 24 publications

(13 citation statements)

References 47 publications

(44 reference statements)

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“…The results indicate that (1) increasing reserves through greater profitability and changing the portfolio mix to emphasize housing loans are alternative strategies; (2) larger credit unions (with less effective common bonds) are more likely to increase profitability or to emphasize housing loans in response to capital requirements; and (3) both strategies are more likely for institutions with lower levels of initial regulatory capital. The results agree with other papers that internal member bonding is an important determinant of credit union behavior (Williams 1986, Kohers andMullis 1988;Bundt et al, 1989, Patin and McNiel 1991, Brown and O'Connor 1995, 1999.…”

Section: Discussionsupporting

confidence: 92%

“…4 A subdivision of industrial bonds into public and private sector institutions is made, consistent with Arneil (1969). Classification is undertaken using information in the relevant 2 Brown and O'Connor (1995) adopt this classification in their study of scale economies in Victorian credit unions, and in their study of exit patterns of credit unions post-AFIC (Brown et al, 1999). See also Crapp and Skully (1985).…”

Section: Datamentioning

confidence: 99%

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Imposing Capital Controls on Credit Unions: An Analysis of Regulatory Intervention in Australia

Greinke

2005

Ann Public Coop Econ

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Abstract**: What impacts would minimum capital requirements have on mutual institutions lacking the ability to raise equity capital? Can the response of credit unions to capital controls be explained by internal member bonding? The imposition of capital controls on credit unions by the Australian Financial Institutions Commission is studied as a Box‐Tiao time series quasi‐experiment. Time series intervention and trend analyses are performed on a sample of 150 credit unions over the period 1987 to 1997, together with cross‐sectional regressions of the estimated responses. The results demonstrate that the capital controls had a significant impact on credit union behavior. Consistent with theoretical expectations, the response of individual credit unions is found to be a function of initial capital levels and internal member bonding.

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Section: Discussionsupporting

confidence: 92%

Section: Datamentioning

confidence: 99%

Imposing Capital Controls on Credit Unions: An Analysis of Regulatory Intervention in Australia

Greinke

2005

Ann Public Coop Econ

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“…Furthermore, the TCF can detect a U-shaped average cost curve if one exists in the data, which is the restrictive property of production function like the Cobb-Douglas (Brown and O'Connor, 1995). The TCF has been used in many studies on economies of scale in broad type of industries, such as in credit union (Brown and O'Connor, 1995), cooperative (Kebede and Schreiner, 1996;Liu and Bailey, 2012), banking (Deelchand and Padgett, 2009;Sahoo and Gstach, 2011;Fu and Sio, 2011), payment processing (Beijnen and Bolt, 2009), electricity (Tuthill, 2008), fifteen major sectors of the economy (Haouas and Heshmati, 2013), water utilities (Horn and Saito, 2011), airport (Martin and Voltes-Dorta, 2008), and tourism (Shi and Smyth, 2012) Following Liu and Bailey (2012), this study used producer approach in which cooperatives were treated as firms that provide services to consumers. With this approach, only labor and physical capital were considered as inputs necessary to conduct transactions (Margono et al, 2010;Deelchand and Padgett, 2009).…”

Section: Analytical Toolsmentioning

confidence: 99%

Economies of Scale of Sugarcane Cooperatives in East Java Province and Their Influencing Factors

Ariningsih¹

2016

JAE

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ABSTRAKJawa Timur merupakan provinsi sentra tebu terbesar di Indonesia dengan banyak koperasi primer yang terlibat dalam bisnis pertebuan. Penelitian ini bertujuan untuk menguji keberadaan kondisi skala ekonomi dari koperasi-koperasi yang bergerak dalam agribisnis tebu di Provinsi Jawa Timur dan faktor-faktor yang memengaruhi skala ekonomi tersebut. Metode translog cost-function dan pendekatan produsen digunakan untuk menganalisis data panel dari koperasikoperasi responden pada periode 2008-2011. Hasil penelitian menunjukkan bahwa mayoritas koperasi yang bergerak dalam agribisnis tebu di Provinsi Jawa Timur yang dianalisis berada dalam kondisi diseconomies of scale. Analisis lebih lanjut menunjukkan bahwa kondisi skala ekonomi dipengaruhi oleh output per anggota, klasifikasi koperasi, dan total asset koperasi. Supaya skala ekonomi bisa tercapai dan bisa memberikan pelayanan yang lebih baik kepada anggotanya koperasi-koperasi tersebut harus memperbaiki efisiensi manajemennya. Kata kunci: skala ekonomi, translog cost-function, koperasi tebu, Provinsi Jawa Timur ABSTRACTEast Java Province is the largest sugarcane producing center in Indonesia and there are many primary cooperatives engaged in sugarcane business. The objective of this study is to determine the existence of economies of scale of sugarcane cooperatives in East Java Province and examine their influencing factors. Trans-log cost-function method and producer approach coupled with a set of panel data over the period 2008 to 2011 was used in this study. The study show significant diseconomies of scale for majority of sugarcane cooperatives in East Java and that the economies of scale were affected by output per member, classification, and total assets of the cooperatives. These results strongly suggest that the sugarcane cooperatives improve their management efficiency in order to achieve economies of scale and better services for their members.

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“…Although studies of credit unions in Australia have generally failed to ¢nd statistically signi¢cant evidence of economies of scale. See Crapp (1983) and Brown and O'Connor (1995). 5…”

Section: Introductionmentioning

confidence: 99%

Efficiency, Bond of Association and Exit Patterns in Credit Unions: Australian Evidence

Brown

O’Connor

1999

Ann Public Coop Econ

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Data envelopment analysis is used in this study to provide measures of the e¤ciency of individual credit unions in the Australian state of Victoria in the period 1992^5. The resulting measures are consistent with those reported in comparable studies. There is no evidence that over the period of the study, the`average' credit union moved closer to the e¤cient frontier. E¤ciency measures are analysed according to the bond of association and the results are consistent with the proposition that a tighter bond will tend to reduce operating costs. In the period of the study there &CIRIEC 1999. Published by Blackwell Publishers,

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Measurement of Economies of Scale in Victorian Credit Unions

Cited by 24 publications

References 47 publications

Imposing Capital Controls on Credit Unions: An Analysis of Regulatory Intervention in Australia

Imposing Capital Controls on Credit Unions: An Analysis of Regulatory Intervention in Australia

Economies of Scale of Sugarcane Cooperatives in East Java Province and Their Influencing Factors

Efficiency, Bond of Association and Exit Patterns in Credit Unions: Australian Evidence

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