This paper analyzes the effects of returns to scale, farm-size, technical, allocative, and scale inefficiencies on the profitability of Utah dairy farms. It derives the conditions necessary to compare the profitability of farms within and between different size classifications as small, medium,...

This paper analyzes the relationship between deregulation and total factor productivity (TFP) growth in the Indian banking industry using a generalized shadow cost function approach. TFP growth is decomposed into a technological change, a scale, and a miscellaneous component. A disaggregated...

This paper develops a generalized profit function that incorporates price distortions resulting from imperfect market conditions, sociopolitical and institutional constraints, as well as technical and allocative inefficiency. The model is applied to test (1) the appropriateness of the...

This study is primarily concerned with investigating the technical, allocative, and scale inefficiency of owner-operators of dairy farms in Utah. A stochastic production frontier has been applied to analyze these inefficiencies. The results indicate that there is positive association between...

Using a flexible translog cost function, this paper introduces an error specification to incorporate costs of technical and allocative inefficiencies. First, the maximum likelihood method is developed to obtain consistent parameter estimates of the cost function. These estimates are then used to...

Credit risk is crucial to understanding banks' production technology and should be explicitly accounted for when modeling the latter. The banking literature has largely accounted for risk by using ex-post realizations of banks' uncertain outputs and the variables intended to capture risk. This...

In this paper, the author considers specification and estimation of technical and allocative inefficiency in a cost-minimizing framework using panel data. Some distinguishing features of the model are (1) the functional form of the production technology is flexible enough to allow elasticity to...

This article investigates adverse selection and moral hazard in the voluntary deposit insurance system of Kansas, which operated from 1909 to 1929. Regulations were imposed to limit risk-taking and membership was made voluntary to assuage objections that insurance forces conservative banks to...