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This paper presents a conceptual framework for explaining credit union (CU) loan delinquency and profitability in developing countries. It also offers an empirical estimation for a unique sample of Latin American CUs
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estimated translog profit function is generalized using a slack variable concept that prameterizes any systemic deviation from … profit- maximizing behavior exhibited within the sample, as predicted by previous research on credit unions. Two types of … and outputs) than would be profit-maximizing at the observed vector of netput prices, possibly reflecting administrative …
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