Evaluate the collective function of references cited together in a given text segment.
Classify their combined role into one of the following categories: 'method', 'background', or 'result'.

Text:As argued by Demirgüç-Kunt and Huizinga (2004), Total cost of funds is an implicit interest rate on BHC liabilities, which is inferred from its financial statements. While Total cost of funds measures the overall cost of a BHC’s debts, it can differ across banks and time due to differences in interest rates or in the maturity and structure of a BHC’s debt. We therefore construct a second funding cost measure that focuses only on deposits. Following Gilje, Loutskina, and Strahan (2016), we measure the cost of deposits as a BHC’s interest expense on domestic deposits during a quarter divided by the stock of domestic deposits at the beginning of the quarter (Cost of domestic deposits).
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