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Labour Cost Efficiency in UK and Irish Credit Institutions

Author

Listed:
  • Trevor Fitzpatrick

    (European Central Bank)

  • Kieran McQuinn

    (Central Bank and Financial Services Authority of Ireland)

Abstract

This paper presents aggregated cost efficiency scores for a balanced panel of British and Irish credit institutions and relates these scores to loan loss reserves as a first step in investigating their usefulness as possible indicators of financial fragility. The efficiency scores are obtained using the two most popular methods of efficiency measurement – data envelopment analysis (DEA) and the stochastic frontiers approach.

Suggested Citation

  • Trevor Fitzpatrick & Kieran McQuinn, 2005. "Labour Cost Efficiency in UK and Irish Credit Institutions," The Economic and Social Review, Economic and Social Studies, vol. 36(1), pages 45-66.
  • Handle: RePEc:eso:journl:v:36:y:2005:i:1:p:45-66
    as

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    File URL: http://www.esr.ie/Vol36_1/Vol36_1FitzpatrickQuinn.pdf
    File Function: First version, 2005
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    References listed on IDEAS

    as
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    Cited by:

    1. Ananth Rao, 2010. "Analysis of managerial efficiency in insurance sector in the UAE: an emerging economy," International Journal of Managerial Finance, Emerald Group Publishing, vol. 6(4), pages 329-343, September.
    2. Behr, Andreas & Tente, Sebastian, 2008. "Stochastic frontier analysis by means of maximum likelihood and the method of moments," Discussion Paper Series 2: Banking and Financial Studies 2008,19, Deutsche Bundesbank, Research Centre.

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