mckeow99


Robert McKeown

Photo of Robert McKeown

Department of Economics

Assistant Professor
Teaching Stream

Office: Vari Hall, 1052
Phone: 416-736-2100 Ext: 77026
Email: mckeow99@yorku.ca


Research fields: Financial economics, Banking, and Education

More...

The research of Robert J. McKeown has focused on the Canadian and U.S. banking system. His research agenda seeks to determine whether the rapidly increasing size of the largest Canadian banks produces cost savings. After compiling a data set from the office of the Superintendent of financial institutions (OSF I), he evaluates returns to scale in the Canadian banking system using a stochastic frontier approach. Similarly, Robert compares the U.S. and Canadian banking system in both a qualitative and quantitative framework. The extent to which the Canadian financial system is stable is a major part of his research. He uses publicly available data to stress test the Canadian banking system in a bottom-up approach that uses the financial statements of individual Canadian banks to better understand the entirety of the banking system. He also conducts experiments to further education in economics.

Degrees

PhD, Queen's University
Conference Papers

Publication
Year

McKeown, Robert (2017), Where are the economies of scale in Canadian banking? Queen’s University Working Paper 1380.

Using a new data set from the Office of the Superintendent of Financial Institutions, I conduct an in-depth study on cost efficiency and returns to scale (RTS) in Canadian banking. I estimate a transcendental log cost function for the six largest Canadian commercial banks which account for approximately 90 percent of chartered bank assets over the 1996-2011 sample period. The minimal amount of firm entry and exit simplifies many difficulties in the analysis, and the panel dynamic ordinary least squares estimator (PDOLS) provides less biased results than the fixed-effect OLS. Departing from previous studies in banking, I calculate whether the estimated cost function satisfies the microeconomic properties of a monotonicity and price concavity. To my knowledge, this is the first paper to find evidence of constant RTS among the Canadian banks. The result is robust to a number of different asset and price specifications. Furthermore, there is little evidence to suggest cost inefficiencies among the large Canadian banks. This is true whether the Greene (2005) true fixed effects ML estimator is estimated or a distribution-free approach is measured. Combining these two results, the large Canadian banks managed costs efficiently and minimized costs from 1996 to 2011.

2017

Approach to Teaching


Courses Taught: Financial economics, Corporate Finance, Macroeconomics, Microeconomics, and Accounting


Current Courses

Term Course Number Section Title Type
Fall 2020 AP/ECON1010 3.0 A Introduction to Macroeconomics LECT
Fall 2020 AP/ECON1530 3.0 A Introductory Mathematical Economics I LECT
Fall 2020 AP/ECON1530 3.0 F Introductory Mathematical Economics I LECT
Fall 2020 AP/ECON1530 3.0 G Introductory Mathematical Economics I LECT


Upcoming Courses

Term Course Number Section Title Type
Winter 2021 AP/ECON1010 3.0 X Introduction to Macroeconomics BLEN
Winter 2021 AP/ECON1010 3.0 Z Introduction to Macroeconomics BLEN
Winter 2021 AP/ECON1530 3.0 O Introductory Mathematical Economics I LECT


Research fields: Financial economics, Banking, and Education

The research of Robert J. McKeown has focused on the Canadian and U.S. banking system. His research agenda seeks to determine whether the rapidly increasing size of the largest Canadian banks produces cost savings. After compiling a data set from the office of the Superintendent of financial institutions (OSF I), he evaluates returns to scale in the Canadian banking system using a stochastic frontier approach. Similarly, Robert compares the U.S. and Canadian banking system in both a qualitative and quantitative framework. The extent to which the Canadian financial system is stable is a major part of his research. He uses publicly available data to stress test the Canadian banking system in a bottom-up approach that uses the financial statements of individual Canadian banks to better understand the entirety of the banking system. He also conducts experiments to further education in economics.

Degrees

PhD, Queen's University

All Publications


Conference Papers

Publication
Year

McKeown, Robert (2017), Where are the economies of scale in Canadian banking? Queen’s University Working Paper 1380.

Using a new data set from the Office of the Superintendent of Financial Institutions, I conduct an in-depth study on cost efficiency and returns to scale (RTS) in Canadian banking. I estimate a transcendental log cost function for the six largest Canadian commercial banks which account for approximately 90 percent of chartered bank assets over the 1996-2011 sample period. The minimal amount of firm entry and exit simplifies many difficulties in the analysis, and the panel dynamic ordinary least squares estimator (PDOLS) provides less biased results than the fixed-effect OLS. Departing from previous studies in banking, I calculate whether the estimated cost function satisfies the microeconomic properties of a monotonicity and price concavity. To my knowledge, this is the first paper to find evidence of constant RTS among the Canadian banks. The result is robust to a number of different asset and price specifications. Furthermore, there is little evidence to suggest cost inefficiencies among the large Canadian banks. This is true whether the Greene (2005) true fixed effects ML estimator is estimated or a distribution-free approach is measured. Combining these two results, the large Canadian banks managed costs efficiently and minimized costs from 1996 to 2011.

2017

Approach to Teaching


Courses Taught: Financial economics, Corporate Finance, Macroeconomics, Microeconomics, and Accounting


Current Courses

Term Course Number Section Title Type
Fall 2020 AP/ECON1010 3.0 A Introduction to Macroeconomics LECT
Fall 2020 AP/ECON1530 3.0 A Introductory Mathematical Economics I LECT
Fall 2020 AP/ECON1530 3.0 F Introductory Mathematical Economics I LECT
Fall 2020 AP/ECON1530 3.0 G Introductory Mathematical Economics I LECT


Upcoming Courses

Term Course Number Section Title Type
Winter 2021 AP/ECON1010 3.0 X Introduction to Macroeconomics BLEN
Winter 2021 AP/ECON1010 3.0 Z Introduction to Macroeconomics BLEN
Winter 2021 AP/ECON1530 3.0 O Introductory Mathematical Economics I LECT