This paper investigates the effect of ownership structure on the cost efficiency of Australian building societies using the stochastic econometric frontier approach. Contrary to the expense preference hypothesis, mutuallyâ€owned societies were found to be, on average, more cost efficient than...

Linear quadratic optimal control techniques are applied to a simplified reduced form model of the Australian money market to examine the tradeoff between improved monetary control and interest rate variability. We focus on a series of questions. Is quarterly control of the money supply feasible...

Variation in the Australian money supply is analyzed in two frameworks: (1) the “formations table†framework; and (2) a framework obtained by modifying traditional monetary decomposition to accommodate the ability of Australian banks to change their LGS assets by transacting with the...

This paper analyses the capital adequacy provisions introduced by the Reserve Bank of Australia from September, 1988 and examines its initial application to three major Australian banks. This risk-adjusted capital adequacy ratio is partial in its coverage and thus a misleading measure of total...

The paper examines the dynamics of financial structure decisions through the specification and estimation of a dynamic model of capital structure choice. Using a multivariate adjustment model and pooled annual time series/crosssectional data for 164 publicly listed Australian firms over the...