Wheelock, David C.; Wilson, Paul W. - 2019
challenges, especially for banks, which tend to produce multiple outputs and operate with considerable inefficiency. We estimate … Lerner indices for U.S. banks for 2001-18 using nonparametric estimators of the underlying cost and profit functions …, controlling for inefficiency, and incorporating banks' off-balance-sheet activities. We find that mis-specification of cost or …
