Most bank efficiency studies that use stochastic frontier analysis (SFA) employ each bank’s own implicit input price … substantial measurement error. In this paper, we examine the magnitude and direction of this error in cost and profit efficiency …

One of the advantages of conduct parameter games is that they enable estimation of market power without total cost data …. In line with this, we develop a conduct parameter based model to estimate the firm specific "marginal cost efficiency …" and conduct without using total cost data. The marginal cost efficiency is an alternative measure of efficiency that is …

Most bank efficiency studies that use stochastic frontier analysis (SFA) employ each bank's own implicit input price … substantial measurement error. In this paper, we examine the magnitude and direction of this error in cost and profit efficiency …