Elyasiani, Elyas; Kopecky, Kenneth J; VanHoose, David - In: Journal of Money, Credit and Banking 27 (1995) 4, pp. 955-74
This paper develops a model of the banking firm and tests for the presence of 'portfolio separation.' The theoretical model generalizes existing intertemporal adjustment-costs models by assuming that these costs coexist simultaneously on both sides of the bank's balance sheet. Our analysis...