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Evaluating the Performance of Agricultural Bank Management: The Impact of State Regulatory Policies

Published online by Cambridge University Press:  28 April 2015

Bernard K.N. Armah Jr. ,
Timothy A. Park  and
C.A. Knox Lovell
Bernard K.N. Armah Jr.
Affiliation:
Department of Agricultural and Applied Economics
Timothy A. Park
Affiliation:
Department of Agricultural and Applied Economics
C.A. Knox Lovell
Affiliation:
Department of Economics, University of Georgia, Athens, Georgia
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Abstract

We evaluate agricultural bank management performance, focusing on the impacts of interstate banking laws on productivity change. The generalized Malmquist productivity index decomposes productivity change into technological change, technical efficiency change, and change in scale economies. While managerial productivity rose from 1982 to 1991, states that adopted the most liberal interstate banking laws experienced the greatest improvement in productivity. Large agricultural banks were more efficient in states that had more liberalized interstate banking laws while small agricultural banks fared better in states with more restrictive laws.

Keywords

generalized Malmquist indexinterstate bankingproductivity change

Information

Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 31 , Issue 3 , December 1999 , pp. 437 - 448
Copyright
Copyright © Southern Agricultural Economics Association 1999

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