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Working Paper

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

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.

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