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Bank cost efficiency in Kazakhstan and Russia

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TLDR
In this article, a stochastic frontier approach based on a panel data for 2002-6 is used to estimate cost efficiency of the Kazakhstan and Russian banks, and it is found that the banks in both countries operate below their optimal size.
Abstract
In this paper, we estimate cost efficiency of the Kazakhstan and Russian banks. A stochastic frontier approach based on a panel data for 2002–6 is used. The Kazakhstan banking system is traditionally assumed to be more advanced compared to the Russian system. Empirically we do not find any significant differences in the cost efficiency of banks between these two countries during the period of our study. This result is found to be quite robust across several alternative and competing models. We also find that many of the banks in both countries operate below their optimal size.

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Bank ownership and cost efficiency in Russia, revisited

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Estimating cost efficiency of Turkish commercial banks under unobserved heterogeneity with stochastic frontier models

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The Macroeconomic and Institutional Determinants of the Profit Efficiency Frontier for Russian Banks

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References
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Journal ArticleDOI

Measuring the efficiency of decision making units

TL;DR: A nonlinear (nonconvex) programming model provides a new definition of efficiency for use in evaluating activities of not-for-profit entities participating in public programs and methods for objectively determining weights by reference to the observational data for the multiple outputs and multiple inputs that characterize such programs.
Journal ArticleDOI

The Measurement of Productive Efficiency

M. J. Farrell
Journal ArticleDOI

Formulation and estimation of stochastic frontier production function models

TL;DR: In this paper, the authors define the disturbance term as the sum of symmetric normal and (negative) half-normal random variables, and consider various aspects of maximum-likelihood estimation for the coefficients of a production function with an additive disturbance term of this sort.
Journal ArticleDOI

A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data

TL;DR: In this paper, a stochastic frontier production function is defined for panel data on firms, in which the nonnegative technical inefficiency effects are assumed to be a function of firm-specific variables and time.
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