The Thrift Industry and the Community Reinvestment Act: Assessing the Cost of Social Responsibility

Preprint OPEN
Donald F. Vitaliano; Gregory Stella;
(2003)
  • Subject:
    • jel: jel:G21 | jel:M14 | jel:G28

A stochastic frontier cost function indicates that the annual cost of complying with the anti-redlining Community Reinvestment Act (CRA) is $171,000 per thrift institution, roughly 2.3 percent of variable costs. But compliance cost is significantly less than the estimat... View more
  • References (8)

    Aigner, D.J., C.A.K. Lovell and P. Schmit. 1977. “Formulation and Estimation of Stochastic Frontier Production Function Models,” Journal of Econometrics, 6 (1) (July), 21-37.

    Braeutigam, Ronald R. and Andrew F. Daughety. 1983. “On the Estimation of Returns to Scale Using Variable Cost Functions,” Economic Letters, 11 (1-2), 25-31.

    Kumbhakar, Subal C. and C. A .K. Lovell. 2000. Stochastic Frontier Analysis. New York: Cambridge University Press.

    Limdep8. 2002. Econometric Software, Inc. Plainview, N.Y.

    McWilliams, Abagail and Donald Siegel. 2001. “Corporate Social Responsibility: A Theory of the Firm Perspective,” Academy of Management Review, 26 (1) (January), 117-127.

    Mester, L. J. 1993. “Efficiency in the Savings and Loan Industry,” Journal of Banking and Finance, 17 (2/3) (April), 267-86.

    Meeusen, W. and J. van den Broeck. 1977. “Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error,” International Economic Review, 18 (2) (June), 435-44.

    Munnell, A.H., G.M.B. Tootel, L.E. Browne, J.McEneaney . 1996. “Mortgage Lending in Boston: Interpreting HMDA Data,” The American Economic Review, 86(1), 25-53.

  • Related Organizations (4)
  • Metrics
Share - Bookmark