Market frictions prevent the efficient allocation of factors of production, slow down structural transformation and lead to costs in terms of lower output and aggregate total factor productivity (TFP). We use a theoretical framework developed by Aoki (2012) featuring sector-specific frictions on...

In this paper, for the first time, we apply the Färe-Primont productivity index (FPI) to examine the agricultural total factor productivity (TFP), during the period 2004-2016, in four regions of Greece: Macedonia and Thrace (region I), Epirus, Peloponnesus and the Ionian Islands (region II),...

Abstract The reduction of greenhouse gases is the key action to limit global warming. An important source of greenhouse gas emissions and pollution is the inefficiency of production processes. We report results from a stochastic nonparametric efficiency analysis using directional distance...

This paper investigates the size-efficiency relation of European cooperative banks during the 2006-2015 period. We employ the Stochastic Frontier Analysis in order to obtain inefficiency estimates and its determinants on the set of 183 cooperative banks from 12 European countries. This work...

The purpose of this paper is to employ the Meta-Frontier Cost Function to compare the bank efficiencies in Indonesia, Malaysia, and Thailand during the period of 2002-2009. We propose two new variables: income on loans and non-performing loans, to identify whether the banks are both cost and...

Regulatory authorities in the European electricity sector use benchmarking techniques to determine the cost-efficient production level for an incentive regulation of distribution system operators (DSOs). With nearly 900 DSOs operating in the German electricity sector, of which 200 subject to...

In this paper we consider the possibility that a firm may use costly resources to improve its technical efficiency. Results from static analyses imply that technical efficiency is determined by the configuration of factor prices. A dynamic model of the firm is developed under the assumption that...

This paper presents a stochastic frontier model with random inefficiency parameters which captures the influence of risk-taking on bank efficiency and distinguishes the effects among banks with different characteristics. The model is fitted to a 10-year sample of Colombian banks. Cost and profit...