Purpose – The purpose of this paper is to investigate use of efficiency analysis as a technique for investigating bank safely and soundness. Design/methodology/approach – Three different data envelopment analysis (DEA) models were applied to set of data for the major New Zealand banks over a...

This paper examines the selection of data source and econometric technique for studies of banking efficiency using translog cost functions. We examine the use of Seemingly Unrelated Regression estimation for a cost function, as against estimation using Ordinary Least Squares. Choice of cost data...