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Journal of Banking & Finance Vol. 21 No. 10 1997

Operational efficiency in banking: An international comparison Reply to the comment

Linda Allen; Anoop Rai

Hofstra University

Abstract

To avoid problems associated with Jensen's inequality, we use a corrected inefficiency measure to compare the estimate of inefficiency obtained using the distribution free (DF) method with the estimate obtained using the stochastic cost frontier (SCF). The results of the paper are unchanged. The DF method yields measures of inefficiency that are significantly higher than measures obtained using the SCF.

DOI
10.1016/s0378-4266(97)00029-0
Volume
21
Issue
10
Pages
1451-1455
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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