The Contribution of Physical, Information Technology and Advertising Capital to Output and Value of Bank Services

摘要: From Spanish bank level data for the period 1983 to 2003, this paper provides evidence on contribution of banks' inputs output and demand banking services. Particularly, studies role played by labour, physical capital (investment per branch number branches) advertising supply side As well as productive inputs, we introduce concept value-enhancing refer those that increase value services costumers (demand effect). The empirical findings show banks produce their at through combination from labour IT under a constant-returns-to-scale production function. cannot be expanded beyond fixed capacity which, in turn, requires investment (Leontieff function). are just product output/inputs times branches. results also point representative does not operate full capacity, but seem open branches according profit maximizing conditions marginal return equal cost investment. On other hand, acts increasing loans deposits given interest rate. Furthermore, estimations functions provide estimates price elasticity deposits. estimation has been performed using so-called system-GMM estimator. This is novel econometric technique developed overcome limitations traditional estimators with highly persistent and, specifically, production-function (Blundell Bond (1999)). Overall, estimated all what it would expected condition productivity cost. there no over or deployed banks.