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Working Paper

Inefficiency and Productivity Growth in Banking: A Comparison of Stochastic Econometric and Thick Frontier Methods

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A comparison of alternative methods for estimating inefficiency and productivity growth in banking, showing that inefficiencies are sufficiently large to dominate scale economies and that measured technological progress has been small, or even negative, as a result of institutional events that occurred during 1977-88.
12.01.1991ISSN 2573-7953 WP 91-17DOI 10.26509/frbc-wp-199117

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Bauer, Paul, Allen N. Berger, and David Humphrey. 1991. “Inefficiency and Productivity Growth in Banking: A Comparison of Stochastic Econometric and Thick Frontier Methods.” Federal Reserve Bank of Cleveland, Working Paper No. 91-17. https://doi.org/10.26509/frbc-wp-199117