Heterogeneous credit union production technologies with endogenous switching and correlated effects

摘要: ABSTRACTCredit unions differ in the types of financial services they offer to their members. This article explicitly models this observed heterogeneity using a generalized model endogenous ordered switching. Our approach captures choice that credit make when adding new products mix. The we consider also allows for dependence between unobserved effects and regressors both selection outcome equations can accommodate presence predetermined covariates model. We use estimate returns scale U.S. retail from 1996 2011. document strong evidence persistent technological among offering different service mixes, which, if ignored, produce quite misleading results. Employing our model, find all exhibit substantial economies scale.