An analysis of inefficiencies in banking: a stochastic cost frontier approach
Robert Eisenbeis () and
No 95-12, Working Papers in Applied Economic Theory from Federal Reserve Bank of San Francisco
This paper examines the properties of X-inefficiencies in U.S. banking firms. We find that, after controlling for scale differences, the average small size banking firm is less efficient than the aerate large firm. Smaller firms also exhibit higher variation in X-inefficiencies than their larger counterparts. X-inefficiency on average appears to be declining over time. However, the rank ordering of X-inefficiency is significantly correlated with smaller banking firms' stock returns. ; Published in FRBSF Economic Review (1996 no. 2, p. 16-26)
Keywords: Risk; Bank stocks; Banks and banking - Costs; Bank holding companies; Banks and banking (search for similar items in EconPapers)
Date: 1995, Revised 1995
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Journal Article: An analysis of inefficiencies in banking: a stochastic cost frontier approach (1996)
Working Paper: An analysis of inefficiencies in banking: a stochastic cost frontier approach (1995)
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