entities. For this, regulators need to assess the scope for efficiency savings at such entities using historical and forecast … data. There is, however, a moral hazard in regulated companies revealing the full scope for efficiency savings because the … regulator can then incorporate them into ever more demanding efficiency savings in future. Relatedly, unduly demanding short …

This book covers recent advances in efficiency evaluations, most notably Data Envelopment Analysis (DEA) and Stochastic … most common DEA and SFA models. This book relies on R, a free, open source software environment for statistical computing … Benchmarking, which implements the main methods within both DEA and SFA. The book uses mathematical formulations of models and …

This paper examines the impact of regulatory policies on banking market efficiency using a sample of 678 commercial … Squares method. Focus is on two alternative measures of banking market efficiency: net interest margin and overhead costs … (operating expenses to assets). Elevated levels of these two ratios should indicate a low level of banking efficiency. The …