In an in fluential paper Berger and Mester (1997) have proposed the alternative profi t function. It is widely thought that the alternative profi t function does not result in any useful duality properties. We show, in this study, that quite the opposite is true and, in fact, one can recover,...

This paper offers a methodology to address the endogeneity of inputs in the directional technology distance function (DTDF) based formulation of banking technology which explicitly accommodates the presence of undesirable nonperforming loans -- an inherent characteristic of the bank's production...