Efficiency in Australian building societies: an econometric cost function approach

Andrew Worthington

Applied Financial Economics, 1998, vol. 8, issue 5, 459-467

Abstract: Maximum-likelihood estimates of a stochastic cost frontier function incorporating efficiency effects are obtained for 22 Australian building societies in the period 1992-1995. Cost inefficiency scores indicate that building societies' costs were 20% above what could be considered necessary. The results also indicate that capital adequacy restrictions are not a significant influence on the level of inefficiency, though branch and agency networks, asset size, and non-core commercial activities are. At the industry level that there has been an improvement in the level of cost efficiency of Australian building societies during the period in question.

Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/096031098332754 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apfiec:v:8:y:1998:i:5:p:459-467

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAFE20

DOI: 10.1080/096031098332754

Access Statistics for this article

Applied Financial Economics is currently edited by Anita Phillips

More articles in Applied Financial Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().