Cost efficiency and scale/scope economies among S&Ls

Reviews the literature on economies of scale and scope in savings and loan institutions and uses 1980‐1987 US data to explore the cost effects of simultaneous production of outputs (mortgage loans, other loans and deposits), the impact of size and product‐specific economies of scale. Includes interest as a non‐operating cost and divides the sample into four groups based on asset values. Shows that total costs rose faster than assets, deposits or loans over the period; that there are product‐specific diseconomies of scale for deposits and loans‐ and that economies of scope were made by the larger firms following deregulation.