The Elusive Scale Economies of the Largest Banks and Their Implications for Global Competitiveness

AbstractThe following sections are included:IntroductionEvidence of Scale Economies at the Largest Financial InstitutionsHow are Economies of Scale Typically Measured and Why Do They Elude Many Investigations?How are Scale Economies Measured While Accounting for Endogenous Risk-Taking?Do Too-Big-to-Fail Subsidies Account for the Estimated Scale Economies at the Largest Institutions?What are the Implications of the Estimated Scale Economies at the Largest Institutions for Restricting Their Scale and for Their International Competitiveness?ConclusionsReferences