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Article
Comparing Cost Efficiency Between Financial and Non-financial Holding Banks and Insurers in Taiwan Under the Framework of Copula Methods and Metafrontier
This paper examines the cost efficiency (CE), technology gap ratio (TGR), and overall cost efficiency (OCE) of 43 banks and 27 life insurance companies operating in Taiwan. The use of the copula method to deri...
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Article
Imposing Regularity Conditions to Measure Banks’ Productivity Changes in Taiwan Using a Stochastic Approach
This paper develops a stochastic approach to impose regularity properties on a directional output distance function (DODF) and an output distance function, which can be estimated by maximum likelihood. We use ...
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Article
Joint estimation of the Lerner index and cost efficiency using copula methods
This paper deals with the estimation of market power, measured by the Lerner index, and cost efficiency at the bank level, using the stochastic frontier (SF) methodology. Both market power and cost efficiency ...
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Article
Residential water demand and water waste in Taiwan
Residential water demand has long been an important topic of empirical research. How to estimate water waste, however, has rarely been touched. Using the stochastic frontier approach, this article jointly esti...
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Article
A comparison of the technical efficiency of accounting firms among the US, China, and Taiwan under the framework of a stochastic metafrontier production function
This study employs the newly developed stochastic metafrontier production function by Huang et al. (A new approach to estimating the metafrontier production function based on a stochastic frontier framework. W...
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Article
A new approach to estimating the metafrontier production function based on a stochastic frontier framework
This paper proposes a new two-step stochastic frontier approach to estimate technical efficiency (TE) scores for firms in different groups adopting distinct technologies. Analogous to Battese et al. (J Prod An...
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Article
Bank competition in transition countries: Are those markets really in equilibrium?
This paper investigates the degree of market competition in the banking industries of 17 Central and Eastern European (CEE) countries over the period 1994–2008, using the H statistic proposed by Panzar and Ros...
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Article
Consistent estimation of technical and allocative efficiencies for a semiparametric stochastic cost frontier with shadow input prices
Conventional parametric stochastic cost frontier models are likely to suffer from biased inferences due to misspecification and the ignorance of allocative efficiency (AE). To fill up the gap in the literature...
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Article
Creative destruction over the business cycle: a stochastic frontier analysis
This paper examines the within-industry distributions of jobs created and destructed across plants in terms of technical efficiency, technical efficiency change, scale effect, and technical change. It further ...
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Article
Measuring technical and allocative efficiencies for banks in the transition countries using the Fourier flexible cost function
The transition economies are known to have quite different market structures from the market economies. State-owned banks accounts for a major part of the financial sector in East European countries before the...
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Article
Joint estimation of technical efficiency and production risk for multi-output banks under a panel data cost frontier model
This article generalizes production risk from a single output production function to a multiple output cost frontier, which is able to examine input-oriented technical efficiencies and production risk simultan...
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Article
A Study on the Productivities of IT Capital and Computer Labor: Firm-level Evidence from Taiwan’s Banking Industry
The current paper extends the non-neutral stochastic frontier production function—which belongs to the class of a one-step procedure as defined by Wang and Schmidt (2002) and developed by Huang and Liu (1994)—...
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Article
Comparisons of Economic Inefficiency Between Output and Input Measures of Technical Inefficiency Using the Fourier Flexible Cost Function
The current paper constructs a Fourier flexible cost function, which is commonly known to be a more general function form than the typical translog form, and can globally approximate a true (but unknown) cost ...
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Article
Estimating X-Efficiency in Taiwanese Banking Using a Translog Shadow Profit Function
A multiproducttranslog normalized shadow profit function is used to examineX-efficiency and related issues with respect to Taiwan's bankingsector. The model developed here is theoretically more appropriatecomp...