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

Abstract

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 o fit f ro nt i e r. I n th i s firs t s ag e , as an i n novation… (More)

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