In a recent paper, Karadima and Louri use frontier-based measures of market power and bank competition in an application to Euro Area banking. The purpose of the present note is to access their paper in a critical way, as there are certain fallacies and errors.

The main objective of this study is to analyse the evolution of banking efficiency in the Baltic countries after their accession to the EU and during the financial crisis, and to check whether there are significant differences between these countries as a consequence of their particular...

This paper examines the technical efficiency of Argentinean pension funds management companies using a random stochastic frontier model to rank the pension funds management companies, taking into account heterogeneity in the data. The empirical findings reveal that efficiency measures have a...

This paper analyzes regulation, ownership and unobserved managerial ability as factors affecting the performance of a representative sample of European airports by means of frontier models. The Alvarez, Arias and Greene (2004) frontier model is used. These airports are ranked according to their...

Utilizing the stochastic frontier approach, this paper estimates output and input-oriented technical and scale efficiency levels for a sample of cotton-growing farms in Thessaly, Greece. The empirical results suggest that Greek cotton farm operations are technically and scale inefficient. There...

One of the most enduring problems in cross-section or panel data models is heterogeneity among individual observations. Different approaches have been proposed to deal with this issue, but threshold regression models offer intuitively appealing econometric methods to account for heterogeneity....

This paper is an empirical study of the uncertainty associated with estimates from stochastic frontier models. We show how to construct confidence intervals for estimates of technical efficiency levels under different sets of assumptions ranging from the very strong to the relatively weak. We...

This paper proposes a generalization of the single output stochastic production frontier model. The generalization allows estimation of production frontiers and distance functions (technical efficiency) for multiple output technologies using cross section or panel data on inputs and outputs.

One of the most enduring problems in cross-section or panel data models is heterogeneity among individual observations. Different approaches have been proposed to deal with this issue, but threshold regression models offer intuitively appealing econometric methods to account for heterogeneity....