Alex called me over to his desk this morning, pointed to an economic paper he'd pulled up on the computer and asked, "Can you translate this?"
"Abstract: We consider economies and diseconomies of scope for large U.S. banks by employing ordinary and hybrid translog cost functions. We examine the regularity conditions in output space where scope estimates are calculated and reject all models for which these conditions fail. The translog model always possesses violations. For the hybrid translog, violations occur in every case except one. In this one case, we find economies of scope."
I can't. Can you? Post your answers in the comment section. We'll put the winner on an upcoming podcast.
Here's the full paper.