This article examines the loan rate-setting behavior of German banks for a large variety of retail and corporate loan products. We find that a bank’s operational efficiency is priced in bank loan rates and alters interest-setting behavior. Specifically, we establish that a higher degree of...

This paper aims to investigate the relation between inefficiency in the Brazilian education system and municipal wealth, discussing how the actual legislation possibly influences it. To that end, we apply a stochastic frontier model which accommodates covariates in the asymmetric error component...

The objective of this paper is to identify variables that influenced the efficiency level of Brazilian manufacturing establishments in 1970 and 1980. Efficiency is defined as the ratio of actual to best practice output, which is measured using deterministic translog frontier production...

In this paper, we analyze the productivity of farms across n = 370 municipalities located in the Center-West region of Brazil. We propose a stochastic frontier model with a latent spatial structure to account for possible unknown geographical variation of the outputs. This spatial component is...