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An efficiency analysis of banking systems: a comparison of European and United States large commercial banks using different functional forms

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    Abstract

    This paper aims at investigation the efficiency of European and U.S. commercial banks. Scale and scope economies indicators, as well as a measurement of X-efficiency are derived from three cost functions: Fourier flexible form, translog and Box-Cox. This allows checking the stability and the robustness of the evidence across the different specifications. Our results over the period 1995-98 show that overall the average cost curve is relatively flat with some evidence of scale efficiency gains. More puzzling are the results on the presence of scope economies.

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    File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0306.pdf
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    Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0306.

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    Date of creation: Apr 2003
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    Handle: RePEc:vie:viennp:0306

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    Web page: http://www.univie.ac.at/vwl

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    Cited by:
    1. Santos José O. Dacanay III, 2010. "The evolution of cost and profit efficiency of Philippine commercial banks," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 47(1), pages 109-146, June.

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