ffi ciency : The Role of Bank Strategy and Local Market Conditions

In this paper we focus on the assumption of a common efficient frontier when performing an efficiency study for the banking sector. The fact that environmental factors that are not appropriately controlled may easily bias efficiency estimates. Fir s t, we es tima te a co mmo n cos t an d pr ofit f ro nt i e r. I n th i s firs t s tag e , as an i n novation… CONTINUE READING