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 …

This paper explores how to incorporate banks' capital structure and risk-taking into models of production. In doing so …, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without … considering the underlying microeconomics of production and (2) the literature that uses dual profit and cost functions to study …

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 …

banks that focus on relationship banking compared to those that focus on transaction banking. The macro environment was … results indicate that policy measures that attempt to limit scale and scope in the banking sector increase costs so that …

of capital adequacy, assets quality, management efficiency, earnings quality, liquidity, sensitivity to market risk and … overall risk strategy of the bank. The option-theoretic framework that generates the time values of First Bank and a peer … (Zenith Bank) rationalizes the distinction between the two banks' overall risk appetite wherein the higher risk tolerant bank …

This study examines the impact of bond markets on both bank profit and cost efficiency. By employing the stochastic … efficiency. The development of bond markets generally has a positive (negative) effect on bank profit (cost) efficiency. Given … profit and cost efficiency. Moreover, given the development level of a country’s corporate bond market, a greater share of …

This article examines the efficiency of wind energy production. We quantify production losses in four wind parks across … Germany for 19 wind turbines with non-convex efficiency analysis. In a second stage regression, we adapt the linear regression …