Open AccessA STOCHASTIC FRONTIER ANALYSIS OF UKRAINIAN BANKS EFFICIENCY
Author(s) -
Bohdan Kyshakevych,
Dmytro Mazharov
Publication year - 2018
Publication title -
periodyk naukowy akademii polonijnej
Language(s) - English
Resource type - Journals
eISSN - 2543-8204
pISSN - 1895-9911
DOI - 10.23856/3103
Subject(s) - economics , frontier , financial intermediary , stochastic frontier analysis , fixed asset , econometrics , ukrainian , value (mathematics) , loanable funds , function (biology) , logarithm , interest rate , monetary economics , microeconomics , mathematics , finance , statistics , production (economics) , mathematical analysis , linguistics , philosophy , archaeology , evolutionary biology , biology , history
The authors have developed a model for assessing the Ukrainian banks cost efficiency by means of Stochastic Frontier Analysis, in which the banks are considered as financial intermediaries. On the basis of the likelihood ratio test results the trans-logarithmic function steps forward in the role of the bank’s cost function. In the role of input variables we used the value of fixed assets, the price of labor and price of loanable fund, in the role of output − total loans, other assets and total cost.