In this paper the efficiency characteristics of the British retail banking\ud sector are investigated. Distribution free cost efficiency, economies of\ud scale and economies of scope are all measured. The study employs a one\ud way fixed effects model with a translog specification of productive\ud technology. Both ‘production’ and ‘intermediation’ models of bank\ud production are employed and contrasted. A substantial distribution of cost\ud efficiency is observed in this most important commercial sector. Overall,\ud slight dis-economies of scale are reported for the ‘intermediation’\ud approach and substantial diseconomies of scale are recorded for the\ud ‘production’ approach. A substantial dispersion of cost efficiency is\ud observed for this sector with both model specifications
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