We extend a recently developed DEA methodology for cost efficiency analysis towards profit efficiency settings. This … establishes a novel DEA toolkit for profit efficiency assessments in situations with multiple inputs and multiple outputs. A … also establish a dual relationship between our multi-output profit inefficiency measure and a technical inefficiency …

We analyze the profit efficiency of the Colombian banking industry during the period 2001 - 2013. Unlike previous … studies, we estimate revenue and cost efficiency separately and then compute profit efficiency as a composite measure of both … cost and revenue efficiency. This approach overcomes the mis-specification problems of the traditional nonstandard profit …