Abstract
A nonparametric linear programming approach is adopted to measure the productive efficiency of thrift financial institutions. The methodology is applied to a sample of California thrifts in 1989, yielding high mean efficiency scores. High efficiency scores correspond to high levels of operating efficiency. Estimation of a truncated regression model indicates that the major determinants of thrift efficiency are organization form, management style, risk, and firm size. Applying the methodology to a subset of thrifts from 1986 which had failed by 1989 shows technical inefficiency to be a significant indicator of a high probability of failure.
Original language | English |
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Pages (from-to) | 75-90 |
Number of pages | 16 |
Journal | Journal of Economics and Finance |
Volume | 19 |
Issue number | 2 |
DOIs | |
Publication status | Published - Jun 1995 |
Scopus Subject Areas
- Finance
- Economics and Econometrics