Rationalising Inefficiency: A Study of Canadian Bank Branches

Mette Asmild (), Peter Bogetoft and Jens Hougaard ()
Additional contact information
Mette Asmild: Nottingham University Business School

Occasional Papers from Industrial Economics Division

Abstract: Many studies have attempted to explain estimated inefficiency, for instance by bounded rationality, ignorance, lack of incentives or motivation etc. However, the presence of inefficiency remains in conflict with the neo-classical idea of economic rationality. This paper suggests ways in which the outcomes of Data Envelopment Analysis-type efficiency models can be rationalised. To illustrate the concepts we consider a data set of Canadian bank branches. The empirical results are encouraging since what appears to be inefficiency in some branches can be argued to be the outcome of rational decisions regarding resource allocation.

Keywords: Banking; Data Envelopment Analysis (DEA); Rationalising Inefficiency; Resource utilization; Allocation (search for similar items in EconPapers)
Date: 2006-01-11
New Economics Papers: this item is included in nep-ban, nep-bec and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.nottingham.ac.uk/%7Elizecon/RePEc/pdf/19.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.nottingham.ac.uk/%7Elizecon/RePEc/pdf/19.pdf [301 Moved Permanently]--> https://www.nottingham.ac.uk/%7Elizecon/RePEc/pdf/19.pdf)

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:nub:occpap:19

Access Statistics for this paper

More papers in Occasional Papers from Industrial Economics Division Contact information at EDIRC.
Bibliographic data for series maintained by Robert Hoffmann ( this e-mail address is bad, please contact ).