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FRONTIER EFFICIENCY MEASUREMENT IN DEPOSIT‐TAKING FINANCIAL MUTUALS: A REVIEW OF TECHNIQUES, APPLICATIONS, AND FUTURE RESEARCH DIRECTIONS
Author(s) -
Worthington Andrew C.
Publication year - 2010
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/j.1467-8292.2009.00405.x
Subject(s) - frontier , economics , estimation , measure (data warehouse) , focus (optics) , efficient frontier , finance , business , computer science , political science , management , portfolio , database , law , physics , optics
** : Despite the global importance of mutuals in financial services, and the universal need to measure and improve organizational efficiency in all deposit‐taking institutions, it is only relatively recently that the most advanced econometric and mathematical programming frontier techniques have been applied. This paper provides a synoptic survey of the comparatively few empirical analyses of frontier efficiency measurement in deposit‐taking financial mutuals, comprising savings and loans, building societies and credit unions in Australia, the UK, and the USA. Both estimation and measurement techniques and the determinants of efficiency are examined. Particular focus is placed on how the results of these studies may help inform regulatory policy and managerial behaviour.