between the risk-incentives literature in banking that ignores the microeconomics of production and the production literature … that ignores the relationship between production decisions and risk. …We argue for a shift in the focus of modeling production from the traditional assumptions of profit maximization and …

We estimate inefficiency for the Chilean banking system in the period 1990-1999 through a sample of 24 national and …. National and large banks appear to be more efficient. It is exactly the latter group which has reported greater levels of risk … times the level detected for national banks. Finally, inefficiency in the national banking system appears more clearly …

to consider the association of their size with systemic risk. An equally important question examines whether their size … advantages that improve the efficiency of their capital allocation and liquidity and enhance their international competitiveness …-related changes in risk-taking, which can obscure technological cost advantages, such as those due to better diversification. It …

This paper explores how to incorporate banks' capital structure and risk-taking into models of production. In doing so …, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without … considering the underlying microeconomics of production and (2) the literature that uses dual profit and cost functions to study …

economies using two production models. The standard risk-neutral model finds little evidence of scale economies. The model using … more general risk preferences and endogenous risk-taking finds large scale economies. We show that these economies are not …

This paper is aimed at discussing, within the framework of production microeconomics, the properties of production sets … conditions for the production set that are in line with our basic assumptions onthe effect of management, z may, in general, be …