A Cross-Sectional Analysis of The Cost of Operations Of Trust Departments.

The article specifies and estimates cost functions for bank trust functions. The author presents a replication of a previous study which includes six-cross sections that were not available in previous bank function studies. The article explains the cost structure of a bank activity which the U.S. Congress has given attention to. The article also discusses empirical estimates of the cost function, a specification of a theoretical model of production and cost, and observed economies of scale. Several equations are provided to help illustrate the study.