Efficiency in Australian building societies: an econometric cost function approach
Maximum-likelihood estimates of a stochastic cost frontier function incorporating efficiency effects are obtained for 22 Australian building societies in the period 1992-1995. Cost inefficiency scores indicate that building societies' costs were 20% above what could be considered necessary. The results also indicate that capital adequacy restrictions are not a significant influence on the level of inefficiency, though branch and agency networks, asset size, and non-core commercial activities are. At the industry level that there has been an improvement in the level of cost efficiency of Australian building societies during the period in question.
Volume (Year): 8 (1998)
Issue (Month): 5 ()
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