between the risk-incentives literature in banking that ignores the microeconomics of production and the production literature … that ignores the relationship between production decisions and risk. …We argue for a shift in the focus of modeling production from the traditional assumptions of profit maximization and …

We estimate inefficiency for the Chilean banking system in the period 1990-1999 through a sample of 24 national and …. National and large banks appear to be more efficient. It is exactly the latter group which has reported greater levels of risk … times the level detected for national banks. Finally, inefficiency in the national banking system appears more clearly …

to consider the association of their size with systemic risk. An equally important question examines whether their size … advantages that improve the efficiency of their capital allocation and liquidity and enhance their international competitiveness …-related changes in risk-taking, which can obscure technological cost advantages, such as those due to better diversification. It …

The Great Recession focused attention on large financial institutions and systemic risk. We investigate whether large … economies or too-big-to-fail subsidies. Estimating scale economies is made more complex by risk-taking. Better diversification … resulting from larger scale generates scale economies but also incentives to take more risk. When this additional risk …

This paper proposes a managerial control tool that integrates risk in efficiency measures. Building on existing … efficiency specifications, our proposal reflects the real banking technology and accurately models the relationship between … risk, and is linked only to the relevant dimension of the output set. We empirically illustrate how our efficiency measure …

the slacks into an overall efficiency score. The CCR and BCC models are units invariant in their radial component, but not … into an overall efficiency score, making it easier to interpret and use the results. The FPS and PSA methodologies are …

taking. In a "normal" DEA banking efficiency model this risk element, embedded in banks' business models, is indicated by …The recent nancial crisis highlighted how banks' funding and investment portfolios are associated with their risk … significantly more efficient than the other banks once weight restrictions are applied to control for risk, even if this pattern was …

findings suggest that the China's banking sector has exhibited productivity progress attributed to the increase in efficiency … and loan intensity leads to a higher level of total factor productivity, technological change and efficiency, while risk …

This paper proposes a managerial control tool that integrates risk in efficiency measures. Building on existing … efficiency specifications, our proposal reflects the real banking technology and accurately models the relationship between … risk, and is linked only to the relevant dimension of the output set. We empirically illustrate how our efficiency measure …