Article thumbnail

Input inefficiency in commercial banks: a normalized quadratic input distance approach

By Thomas L. Marsh, Allen M. Featherstone and Thomas A. Garrett

Abstract

A normalized quadratic input distance function is proposed with which to estimate technical efficiency on commercial banks regulated by the Federal Reserve System. The study period covers 1990 to 2000 using individual bank information from the Call and Banking Holding Company Database. A stochastic frontier model is specified to estimate the input normalized distance function and obtain measures of technical efficiency.Banks and banking

OAI identifier:

Suggested articles

Citations

  1. (1988). A Normalized Quadratic Semiflexible Functional Form,”
  2. (2002). A Semiflexible Normalized Quadratic Inverse Demand System: An Application to the Price Formation of Fish”,
  3. (1993). Bank Efficiency Derived from the Profit Function.”
  4. (2002). Decomposition of Productivity Growth Using Distance Functions: The Case of Dairy Farms in
  5. (1992). Duality and Moden Economics,
  6. (1988). Introduction to the Theory and Practice of Econometrics,
  7. (1996). Markov chain Monte Carlo Simulation Methods in
  8. (1980). Maximum Likelihood Estimation of Econometric Frontier Functions,”
  9. (1990). Measuring Cost Efficiency in Banking: Econometric and Linear Programming Evidence.”
  10. (1994). Measuring economies of scale and scope in agricultural banking’,
  11. (1995). Multi-Output Production and Duality: Theory and Applications.
  12. (1993). Output Allocative and
  13. (1988). Prediction of Firm-Level Technical Efficiencies with a Generalized Frontier Production Function and Panel Data,”
  14. (2002). Stochastic Estimation of Firm Technology, Inefficiency, and Productivity Growth Using Shadow Cost and Distance Functions,”
  15. (1978). Testing and imposing monotonicity, convexity and quasi-convexity constraints’,
  16. (1957). The Measurement of Productive Efficiency,”
  17. (1959). Theory of Value.
  18. (1999). What Explains the Dramatic Changes in Cost and Profit Performance of the U.S. Banking Industry.” Working Paper 99-1,

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.