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Working Paper 2003-036A

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"Input Inefficiency In Commercial Banks: A Normalized Quadratic Input Distance Approach"
by Thomas L. Marsh, Allen M. Featherstone, and Thomas A. Garrett

A normalized quadratic input distance function is proposed with which to estimate technical efficiency on commercial banks regulated by the Federal Reserve System. The study period covers 1990 to 2000 using individual bank information from the Call and Banking Holding Company Database. A stochastic frontier model is specified to estimate the input normalized distance function and obtain measures of technical efficiency.

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Category > Applied Econometrics
Category > Banking
Author > Thomas A. Garrett