a cost malmquist productivity index capturing group performance this paper develops an index for comparing the productivity of groups of operating units in cost terms when input prices are available in that sense it represents an extension of a similar index available in the literature for comparing groups of units in terms of technical productivity in the absence of input prices the index is decomposed to reveal the origins of differences in performance of the groups of units both in terms of technical and cost productivity the index and its decomposition are of value in contexts where the need arises to compare units which perform the same function but they can be grouped by virtue of the fact that they operate in different contexts as might for example arise in comparisons of water or gas transmission companies operating in different countries

prices and investment with collateral and default abstract this paper uses the framework of an olg economy with three period lived agents in which a durable good serves as collateral for loans to study the effect of an unanticipated income shock when the economy is in a steady state equilibrium we focus on the consequence of default on loans when the value of the collateral falls below the value of the debt it secures we analyze the impulse response functions of the price and production of the durable good and show that there is an asymmetry between the response of the price and investment of the durable good to a positive and a negative income shock arising from default on the collateralized loans we show that this asymmetry can be seen in the data on housing prices and construction and is attributable to the default on mortgages in periods of decreasing prices which acts as a turbo mechanism magnifying the decline in investment

has regulatory reform had any impact on bank efficiency in indonesia a two stage analysis abstractmore than a decade following the severe economic crisis 1997 indonesia has undergone major regulatory changes in its banking industry this article examines the impact of these regulatory changes on the relative technical efficiency te of the indonesian banking industry employing data envelopment analysis dea and censored tobit regression model additionally the bootstrap approach of simar and wilson is employed to provide statistical properties to the dea efficiency score the findings show that the industry on average is inefficient over the period of analysis also state owned and foreign owned banks are found to be more efficient than any other group of banks finally the impact of regulatory reforms is generally positive and statistically significant

operationalizing opportunities in entrepreneurship research use of data envelopment analysis despite the impressive development of substantive theories in entrepreneurship without the development of measurement theories further advancement of the field is problematic in particular the notion of opportunities central to entrepreneurship research requires adequate macro level operationalization we demonstrate how to employ data envelopment analysis dea to operationalize not only innovative opportunities but also technological arbitrage opportunities we provide an illustrative example based on a sample of 66 countries during the period of 1993 2002 we include estimates of innovative and arbitrage opportunities for possible use by other scholars discuss the promise and limitations of such estimates demonstrate how both innovative and arbitrage opportunities correlate with the rates of entrepreneurial activity and suggest several possible directions for future research

a characterization of erratic dynamics in the overlapping generations model abstract in this paper we characterize and give examples o wide classes of utility functions which generate erratic dynamics in the standard deterministic overlapping generations model erratic dynamics refers to feasible trajectories which are bounded but which do not converge to stationary points or periodic orbits we show that such trajectories are pareto efficient we introduce credit into the model and show how a constant credit expansion rate can result in erratic trajectories in prices and the real value of credit finally we briefly discuss certain technical aspects of the mathematics used and the statistical nature of the dynamics that can arise from deterministic dynamical systems

the nonparametric risk adjusted efficiency measurement an application to taiwan s major rural financial intermediaries in this article a nonparametric approach is used to incorporate risk into the measurement of technical efficiencies of the major financial intermediaries in rural taiwan risk is treated as a joint but undesirable output given the fact that various regulatory actions may prevent its free disposability three risk indicators nonperforming loans allowance for loan losses and risky assets are employed alternatively in the empirical work results suggest that all three risk constraints are binding regulations on controlling risky assets and loan loss reserves are effective but more burdensome than those on controlling loan quality

a comparative study of efficiency in european banking this paper investigates whether there has been an improvement in and convergence of productive efficiency across european banking markets since the creation of the single internal market using efficiency measures derived from dea estimation the determinants of european bank efficiency are evaluated using the tobit regression model approach the established literature on modelling the determinants of bank efficiency is then extended by recognizing the problem of the inherent dependency of dea efficiency scores when used in regression analysis to overcome the dependency problem a bootstrapping technique is applied overall the results suggest that since the eu s single market programme there has been a small improvement in bank efficiency levels although there is little evidence to suggest that these have converged the results also suggest that inference on the determinants of bank efficiency drawn from non bootstrapped regression analysis may be biased and misleading

super efficiency evaluations based on potential slack abstract super efficiency evaluations are introduced along the lines of the potential improvements approach in journal of productivity analysis 12 1999 233 both a reference selection and a related super efficiency index are defined the new potential slack super efficiency index is compared to a farrell based super efficiency index as in management science 39 1993 1261 with respect to convex envelopment technologies

some models for estimating technical and scale inefficiencies in data envelopment analysis in management contexts mathematical programming is usually used to evaluate a collection of possible alternative courses of action en route to selecting one which is best in this capacity mathematical programming serves as a planning aid to management data envelopment analysis reverses this role and employs mathematical programming to obtain ex post facto evaluations of the relative efficiency of management accomplishments however they may have been planned or executed mathematical programming is thereby extended for use as a tool for control and evaluation of past accomplishments as well as a tool to aid in planning future activities the ccr ratio form introduced by charnes cooper and rhodes as part of their data envelopment analysis approach comprehends both technical and scale inefficiencies via the optimal value of the ratio form as obtained directly from the data without requiring a priori specification of weights and or explicit delineation of assumed functional forms of relations between inputs and outputs a separation into technical and scale efficiencies is accomplished by the methods developed in this paper without altering the latter conditions for use of dea directly on observational data technical inefficiencies are identified with failures to achieve best possible output levels and or usage of excessive amounts of inputs methods for identifying and correcting the magnitudes of these inefficiencies as supplied in prior work are illustrated in the present paper a new separate variable is introduced which makes it possible to determine whether operations were conducted in regions of increasing constant or decreasing returns to scale in multiple input and multiple output situations the results are discussed and related not only to classical single output economics but also to more modern versions of economics which are identified with contestable market theories

determinacy of equilibrium in stationary economies with both finite and infinite lived consumers abstract we consider the determinacy of perfect foresight equilibrium near steady state equilibria of stationary infinite horizon economies the work of t j kehoe and d k levine econometrica 53 1985 433 453 is generalized by the inclusion of both infinite lived agents and overlapping generations of finite lived agents and the inclusion of production and non depreciating pure rents we show that indeterminacy is possible in robust examples and that the dimension of the indeterminacy can be as large as the number of goods per period we also discuss extreme cases in which determinacy is guaranteed

productivity growth technical progress and efficiency in their comment subhash c ray and evangelia desli 1997 hereafter rd point out that the specification of the decomposition of the malmquist productivity index used by fare et al 1994 hereafter fgnz is not unique and propose and compute an alternative specification of that decomposition we will discuss additional decompositions at the end of this note but proceed here by comparing the rd decomposition with fgnz based on both conceptual and computational grounds rd provide a discussion of the overall malmquist productivity index including the important issue of when this index is equivalent to the traditional notion of total factor productivity tfp namely under the condition that the reference technology be consistent with constant returns to scale crs as they point out this will yield a measure of tfp even if the true underlying technology is not crs for example both rd and fgnz use the crs reference technology to compute overall malmquist productivity one of the key issues raised is the role of the underlying scale properties of the benchmark technologies used to define and compute both productivity and its components in particular two reference technologies are employed in both rd and fgnz what we refer to as crs and variable returns to scale vrs technologies by construction these technologies are nested the crs technology contains the vrs technology as in figure 1 in rd this nestedness provides the logical basis for our decomposition at a very intuitive level we would argue that these two benchmarks can be used to provide bounds on the underlying true but unknown technology 2 intuitively we see the vrs technology providing a type of convex inner approximation whereas the crs technology provides a type of convex outer approximation thus these two technologies provide alternative benchmarks they do not require that the data satisfy either crs or vrs another possible intuitive interpretation is that the crs captures a perhaps hypothetical long run and the vrs approximates the short run as a reference technology the crs technology has some very useful features for example it captures the notion of maximal

the overlapping generations model iii the case of log linear utility functions existence of competitive equilibria in the overlapping generations model has been studied in some detail see 4 6 9 we need to know more about the properties of these equilibria how many are there how do they depend on the basic parameters of the economy we also need to compare the set of monetary competitive equilibria with the set of nonmonetary competitive equilibria are there vastly more monetary equilibria than nonmonetary equilibria analysis of the properties of competitive equilibria is for the overlappinggenerations model an important but difficult task in his seminal article 8 samuelson put it this way if we take any finite stretch of time and write out the equilibrium conditions we always find them containing discount rates from before the finite period and discount rates from afterward we never seem to get enough equations lengthening our time periods turns out always to add as many new unknowns as it supplies equations samuelson suggested that rather than facing this difficulty directly we can try to cut the gordian knot by our special assumption of stationariness

note ranking dmus with infeasible super efficiency dea models it has been suggested in the data envelopment analysis dea literature that it is impossible to obtain a full ranking of decision making units dmus when infeasible subproblems arise in the so called super efficiency dea models under different returns to scale rts assumptions other than constant returns to scale crs andconsequently the application of the super efficiency dea models under different rts conditions other than crs should be restricted the implications of the infeasibility in super efficiency dea models with respect to the efficiency ranking of the dmus is explored based on the analysis we show that it is still possible to obtain the full ranking of the entire observation set when infeasibilities arise in super efficiency dea models

efficiency and risk in taiwan banking sbm super dea estimation in this study we adopt the two data envelopment analysis dea methods including banker charnes cooper bcc and slacks based measure sbm super efficiency to investigate whether a bank s technical efficiency index s results incorporating account risk and not incorporating account risk differ significantly the information is obtained from 43 taiwanese banks for the period 1998 to 2002 we also employ the nonradial and slacks based malmquist total factor productivity tfp index to measure the impact of productivity change on the panel data our empirical results from the dea approach are summarized as follows 1 loan quality factors have an impact on a bank s efficiency in general the bank with a higher degree of problem loans drops down its efficiency by incorporating account risk however the bank with a lower degree of problem loans increases its efficiency by incorporating account risk 2 super efficiency provides a good framework for ranking efficient units 3 based on the nonradial an

share green growth regional evaluation of green output performance in china abstract reducing carbon emissions is much more difficult than reducing other pollutants through current technology promoting the efficiency of energy use and developing clean energy are the only two economically feasible approaches for the future however without low carbon technology pursuing green growth could negatively affect production activities in this study we develop a directional distance function ddf model based on the slacks of the output oriented slack based measure along an endogenously determined directional vector we can calculate the efficiency scores by reducing the undesirable output and expanding desirable output simultaneously the global malmquist index is integrated with the ddf model to capture the dynamic change of output performance based on the output performance of green growth we use counterfactual thinking to evaluate gdp losses caused by limiting carbon emissions the empirical study using the provincial data of china shows that technological progress not efficiency change pushes green growth in china we also find that pursuing green growth in china would lead to a gdp loss of 7 8 furthermore a sub regional analysis shows that the eastern regions were almost immune to the strict carbon control policy while the midwestern regions were affected severely to alleviate the gdp loss we offer suggestion on setting up a green growth sharing mechanism among regions

the dominance of inefficiencies over scale and product mix economies in banking abstract this study measures and analyzes inefficiencies for all u s banks in 1984 inefficiencies are measured relative to a thick frontier cost function and are found to dominate measured scale and product mix economies most inefficiencies are operational in nature involving the overuse of physical inputs rather than financial involving overpayment of interest also technical inefficiencies proportionate overuse of all inputs dominate allocative inefficiencies improper mix of inputs these results suggest that competitive pressures in banking from deregulation will be focused primarily on banks that do not control costs rather than on those of a particular size or product mix

operational research in education operational research or techniques have been applied from the early stages of the discipline to a wide variety of issues in education at the government level these include questions of what resources should be allocated to education as a whole and how these should be divided amongst the individual sectors of education and the institutions within the sectors another pertinent issue concerns the efficient operation of institutions how to measure it and whether resource allocation can be used to incentivise efficiency savings local governments as well as being concerned with issues of resource allocation may also need to make decisions regarding for example the creation and location of new institutions or closure of existing ones as well as the day to day logistics of getting pupils to schools issues of concern for managers within schools and colleges include allocating the budgets scheduling lessons and the assignment of students to courses this survey provides an overview of the diverse problems faced by government managers and consumers of education and the or techniques which have typically been applied in an effort to improve operations and provide solutions

trend reverting fluctuations in the life cycle model abstract aggregate time series provide evidence of short term dynamic adjustment that appears to be governed by complex or negative real eigenvalues this finding is at odds with the predictions of reasonably parameterized convex one sector growth models with complete markets we study life cycle economies in which aggregate saving depends non trivially on the distribution of wealth among cohorts if consumption goods are weak gross substitutes near the steady state price vector we prove that the unique equilibrium of a life cycle exchange economy converges to the unique non monetary steady state via damped oscillations we also discuss examples and extensions

eco efficiency assessment of eu manufacturing sectors combining input output tables and data envelopment analysis following production and consumption based accounting approaches abstract assessing the footprint of anthropogenic activities has become particularly challenging in today s globalized markets where a large number of economic transactions taking place across the globe need to be disentangled before the most critical sectors are identified in this work we present an approach to quantify the eco efficiency of economic activities that combines multi regional environmentally extended input output tables and data envelopment analysis we employ this method to assess the european union manufacturing sectors in terms of three inputs global warming potential potential acidifying equivalent and tropospheric ozone forming potential and one output economic wealth following both production and consumption based accounting approaches our approach classifies economic sectors as efficient and inefficient and for the latter it provides improvement targets that if attained would make them efficient we find that there is a significant mismatch at the sectorial level between both accounting schemes each providing complementary information for policy making in the production based case targets allow identifying sectors and pollutants requiring more stringent regulations and or higher investments in cleaner technologies conversely the consumption based accounting allows identifying the ultimate sources of impact an insight that can assist in the selection of alternative cleaner suppliers via eco labelling of products services and proper taxation schemes

a study of bank efficiency taking into account risk preferences abstract i use the stochastic cost frontier approach to investigate efficiency of banks operating in the third federal reserve district accounting for the quality and riskiness of bank output in addition to the mean and mode of the conditional distribution of the one sided error term i calculate confidence intervals for the inefficiency measures based on the conditional distribution the results indicate that third district banks are operating at cost efficient output levels and product mixes but are not efficiently using their inputs the second part of the article relates the inefficiency measures to several correlates

nonparametric estimation of education productivity incorporating nondiscretionary inputs with an application to dutch schools in this paper we develop a malmquist productivity index for public sector production characterized by the influence of environmental variables we extend johnson and ruggiero 2011 to the more general case of variable returns to scale to further decompose the malmquist productivity index into technical efficiency scale and environmental change we apply our model to analyze productivity of dutch schools using 2002 2007 data the results indicate that the environment influences the productivity index as well as the technical efficiency scale and environmental change components we see that schools with a moderate classification of environment have the highest productivity numbers in line with expectations schools with the worst environment also perform worse and would perform better with an improved environment

forward and backward dynamics in implicitly defined overlapping generations models in dynamic economic models derived from optimization principles the forward equilibrium dynamics may not be uniquely defined while the backward dynamics is well defined we derive properties of the global forward equilibrium paths based on properties of the backward dynamics we propose the framework of iterated function systems ifs to describe the set of forward equilibria and apply the ifs framework to a one and a two dimensional version of the overlapping generations olg model we show that if the backward dynamics is chaotic and has a homoclinic orbit a snap back repeller the set of forward equilibrium paths converges to a fractal attractor forward equilibria may be interpreted as sunspot equilibria where a random sunspot sequence determines equilibrium selection at each date

the impact of immigration on the structure of wages theory and evidence from britain immigration to the uk particularly among more educated workers has risen appreciably over the past 30 years and as such has raised labor supply however studies of the impact of immigration have failed to find any significant effect on the wages of native born workers in the uk this is potentially puzzling since there is evidence that changes in the supply of educated natives have had significant effects on their wages using a pooled time series of british cross sectional micro data on male wages and employment from the mid 1970s to the mid 2000s this paper offers one possible resolution to this puzzle namely that in the uk natives and foreign born workers are imperfect substitutes we show that immigration has primarily reduced the wages of immigrants and in particular of university educated immigrants with little discernable effect on the wages of the native born

comparing school ownership performance using a pseudo panel database a malmquist type index approach in this paper we propose a different way of using the malmquist index that allows us to further analyze the relative performance divergences between two groups of decision making units dmus over time when only a pseudo panel database is available to do this we extend the camanho and dyson 2006 one period malmquist type index cdmi for a pseudo panel database with a new pseudo panel malmquist index ppmi to illustrate the methodology we apply it to examine how the performance gap between public and private government dependent secondary schools in the basque country spain performed across three pisa waves 2006 2009 and 2012 the results suggest that performance is persistently and significantly higher for private government dependent schools than for public schools

are scale economies in banking elusive or illusive evidence obtained by incorporating capital structure and risk taking into models of bank production abstract this paper explores how to incorporate banks capital structure and risk taking into models of production in doing so the paper bridges the gulf between 1 the banking literature that studies moral hazard effects of bank regulation without considering the underlying microeconomics of production and 2 the literature that uses dual profit and cost functions to study the microeconomics of bank production without explicitly considering how banks production decisions influence their riskiness various production models that differ in how they account for capital structure and in the objectives they impute to bank managers cost minimization versus value maximization are estimated using u s data on highest level bank holding companies modeling the bank s objective as value maximization conveniently incorporates both market priced risk and expected cash flow into managers ranking and choice of production plans estimated scale economies are found to depend critically on how banks capital structure and risk taking are modeled in particular when equity capital in addition to debt is included in the production model and cost is computed from the value maximizing expansion path rather than the cost minimizing path banks are found to have large scale economies that increase with size moreover better diversification is associated with larger scale economies while increased risk taking and inefficient risk taking are associated with smaller scale economies

comparative statics and perfect foresight in infinite horizon economies does a pure exchange economy with an infinite time horizon have determinate perfect foresight equilibria when there is a finite number of infinitely lived agents equilibria are generically determinate this is not true with overlapping generations of finitely lived agents we ask whether the initial conditions together with the requirement of convergence to a steady state locally determine an equilibrium price path in this framework there are many economies with isolated equilibria many with continua of equilibria and many with no equilibria at all with two or more goods in every period not only can the price level be indeterminate but relative prices as well furthermore such indeterminacy can occur whether or not there is fiat money and whether or not the equilibria are pareto efficient this paper considers whether infinite horizon economies have determinate perfect foresight equilibria this question is of crucial importance if instead equilibria are locally indeterminate not only are we unable to make comparative static predictions but the agents in the model are unable to determine the consequences of unanticipated shocks the idea underlying perfect foresight is that agents expectations should be the actual future sequence predicted by the model if the model does not make determinate predictions the concept of perfect foresight is meaningless we consider two extreme cases the first with a finite number of infinitely lived consumers and the second with an infinite number of finitely lived consumers an overlapping generations model both are models of stationary pure exchange economies no production including the storage of goods between periods can occur these models are unrealistic but are the easiest to study extensions of the results of this paper to models with production infinitely lived assets and mixtures of the two types of consumers are presented by muller and woodford 29 when there is a finite number of infinitely lived consumers we argue that equilibria are generically determinate this is because the effective number of equations determining equilibria is not infinite but equal to the number of agents minus one and must determine the marginal utility of income for all but one agent generically near an equilibrium these equations are independent and exactly determine the unknowns when there are infinitely many overlapping generations this reasoning breaks down an infinite number of equations is not necessarily sufficient to determine

endowments stability and fluctuations in og models abstract in the present paper we consider a stationary overlapping generations model with many commodities and many different consumers and investigate how the distribution of endowments influences the dynamical properties of the model such as stability of steady states and existence of cycles our main results are 1 1 preferences place no restrictions on stability properties of steady states 2 2 cycles exist for all aggregate savings real or nominal and 3 3 equilibria of economies with equilibria close to a no trade equilibrium with constant prices are either steady states or equilibria which converge to a steady state in backward time and another steady state in forward time these results are obtained generically in utility functions and do not depend on whether the utility functions are of the discounted form or not

the economics of schooling production and efficiency in public schools n recent years public and professional interest in schools has been heightened by a spate of reports many of them critical of current school policy these policy documents have added to persistent and long standing concerns about the cost effectiveness and fairness of the current school structure and have made schooling once again a serious public issue as in the past however any renewed interest in education is likely to be short lived doomed to dissipate as frustration over the inability of policy to improve school practice sets in this frustration about school policy relates directly to knowledge about the educational production process and in turn to underlying research on schools although the educational process has been extensively researched clear policy prescriptions flowing from this research have been difficult to derive 2 there exists however a consistency to the research findings that does have an immediate application to school policy schools differ dramatically in quality

mobility targeting and private school vouchers simulations are derived from a three district model of low middle and highincome school districts calibrated to new york data with housing stocks that vary within and across districts in this model it is demonstrated that school district targeted vouchers are similar in their impact to nontargeted vouchers but vastly different from vouchers targeted to low income households furthermore strong migration effects are shown to significantly improve the likely equity consequences of voucher programs jel 122 128 h73 persistent frustration with the perceived low quality of public education exacerbated by concerns over the inherently unequal levels of public school quality across school districts has caused policy makers courts and researchers to investigate modifications and alternatives to the current public school system one idea that has received increasing academic and public attention is that of private school vouchers with proponents arguing that the competitive pressures of voucher programs would cause improvements in the efficiency of the publicschool system while at the same time addressing equity concerns if vouchers can be targeted to low income households or low income school districts but aside from a few limited experiments in some u s cities our experience with vouchers in the united states remains virtually nonexistent this limits the amount of information researchers can derive from standard empirical analysis in that it forces them to rely on only current nonvoucher induced differences in competition despite important suggestive results such work may not anticipate all the impacts from a large scale policy such as the voucher policies currently under discussion at the same time theoretical models of school finance are also limited in that they often either focus on only one particular aspect of the general equilibrium school finance problem or they are too rich and complex to yield crisp predictions

on endogenous competitive business cycles the belief that the long run equilibrium of a competitive monetary economy that does not experience any exogeneous shocks whether originating from the external environment or from policy should be modelled as a state that is stationary or perhaps growing at a constant rate seems to be deeply rooted in the mind of some economists

the impact of immigration why do studies reach such different results we classify the empirical literature on the wage impact of immigration into three groups where studies in the first two groups estimate different relative effects and studies in the third group estimate the total effect of immigration on wages we interpret the estimates obtained from the different approaches through the lens of the canonical model to demonstrate that they are not comparable we then relax two key assumptions in this literature allowing for inelastic and heterogeneous labor supply elasticities of natives and the downgrading of immigrants downgrading occurs when the position of immigrants in the labor market is systematically lower than the position of natives with the same observed education and experience levels downgrading means that immigrants receive lower returns to the same measured skills than natives when these skills are acquired in their country of origin we show that heterogeneous labor supply elasticities if ignored may complicate the interpretation of wage estimates and particularly the interpretation of relative wage effects moreover downgrading may lead to biased estimates in those approaches that estimate relative effects of immigration but not in approaches that estimate total effects we conclude that empirical models that estimate total effects not only answer important policy questions but are also more robust to alternative assumptions than models that estimate relative effects

the economics of indeterminacy in overlapping generations models abstract recent research indicates that there are robust examples of overlapping generations economies in which there are indeterminate equilibria without fiat money and equilibria with more than one dimension of indeterminacy this paper presents simple examples of a stationary pure exchange overlapping generations economy with one good in each period and a representative consumer who lives for three periods in each generation these examples exhibit every possible form of indeterminacy and instability furthermore the parameters of the principal example agree with empirical evidence we use our examples as case studies for analyzing the problems involved in computing the equilibria of such economies

financial liberalization and bank efficiency a comparative analysis of india and pakistan this paper provides a comparative analysis of the evolution of the technical efficiency of commercial banks in india and pakistan during 1988 1998 a period characterized by far reaching changes in the banking industry brought about by financial liberalization data envelopment analysis is applied to two alternative input output specifications to measure technical efficiency and to decompose technical efficiency into its two components pure technical efficiency and scale efficiency the consistency of the estimated efficiency scores are checked by examining their relationship with three traditional non frontier measures of bank performance in addition the relationship between bank size and technical efficiency is examined it is found that the overall technical efficiency of the banking industry of both countries improved gradually over the years especially after 1995 unlike public sector banks in india public sector banks in pakistan witnessed improvement in scale efficiency only it is also found that banks are relatively more efficient in generating earning assets than in generating income this is attributed to the presence of high non performing loans in addition it is found that the gap between the pure technical efficiency of different size groups has declined over the years

the impact of liberalization on the productive efficiency of indian commercial banks abstract we examine the productive efficiency of 70 indian commercial banks during the early stages 1986 1991 of the ongoing period of liberalization we use data envelopment analysis to calculate radial technical efficiency scores we then use stochastic frontier analysis to attribute variation in the calculated efficiency scores to three sources a temporal component an ownership component and a random noise component we find publicly owned indian banks to have been the most efficient followed by foreign owned banks and privately owned indian banks we also find a temporal improvement in the performance of foreign owned banks virtually no trend in the performance of privately owned indian banks and a temporal decline in the performance of publicly owned indian banks we attempt to explain these patterns in terms of the government s evolving regulatory policies

technical change organizational form and the structure of bank production of those technological characteristics related to the nature of competition among firms in an industry or market scale economies and technical change are especially important economies of scale are said to exist when an equiproportional increase in all inputs results in a greater than proportional increase in output or equivalently when an increase in output at constant input prices leads to a less than proportional increase in total costs thus average costs decline as output expands depending upon the extent to which costs decline as output increases regulation of the firms in the industry may be necessary l the literature analyzing scale economies in commercial banking is voluminous the early studies on scale economies in banking include those by benston 1965 1972 greenbaum 1967 murphy 1972 and bell and murphy 1968 more recent studies include those by benston hanweck and humphrey 1982 and clark 1984 2 this literature has established that mild scale economies exist in bank

technical scale and allocative efficiencies in u s banking an empirical investigation a nonparametric frontier approach is used to calculate the overall technical pure technical allocative and scale efficiencies for a sample of 322 independent banks the sample was drawn from the federal deposit insurance corporation tapes on the reports of condition and reports of income call reports for the year 1986 the results indicated a low level of overall efficiency the main source of inefficiency was technical in nature rather than allocative separate efficiency frontiers were constructed to test the effect of branching however the distributions of efficiency measures for branching and non branching banks were not found to be different

a non radial malmquist productivity index with an illustrative application to chinese major industries abstract data envelopment analysis dea measures the relative efficiency of peer units when multiple outputs and inputs are present dea based malmquist productivity index measures the technical and productivity changes over time the current study extends the malmquist productivity index into a non radial index where the decision maker s preference over performance improvement can be incorporated the non radial malmquist productivity index eliminates possible inefficiency represented by the non zero slacks the method is applied to measure the productivity change of three chinese major industries textiles chemicals and metallurgicals during four five year plan periods the paper shows how dea based malmquist productivity index can be employed to evaluate the technology and productivity changes resulted from the economic development plans the paper also shows the importance of using the non radial malmquist productivity index

firm efficiency and the regulatory closure of s ls an empirical investigation this paper uses a two step methodology to examine the relationship between firm inefficiency and the regulatory closure of savings and loans s ls in the first step using multiproduct translog stochastic cost frontiers the authors estimate inefficiency scores separately for mutual and stock s ls operating in the southwest in 1988 they use the inefficiency scores in second step logit models to identify determinants of regulatory closure for both mutual and stock s ls the authors find a significant positive relationship between firm inefficiency and regulatory closure they also find a greater probability of closure for s ls in economically depressed states copyright 1993 by mit press

equilibrium cycles in an overlapping generations economy with production abstract perfect foresight equilibrium trajectories of an overlapping generations model with production may include stable or unstable invariant closed curves these orbits are detected using the hopf bifurcation theorem where the parameter of bifurcation is purely technological the paper also proves that there is a stabilization policy that completely eliminates the cycle finally using a c e s production function it is shown that the range of values of the elasticity of substitution between capital and labor for which cycles may exist is bounded above

the labor market impact of immigration in western germany in the 1990 s in this article we estimate the wage and employment effects of recent immigration in western germany using administrative data for the period 1987 2001 and a labor market equilibrium model we find that the substantial immigration of the 1990s had very little adverse effects on native wages and on their employment levels instead it had a sizeable adverse employment effect on previous immigrants as well as a small adverse effect on their wages these asymmetric results are partly driven by a higher degree of substitution between old and new immigrants in the labor market and in part by the rigidity of wages in less than flexible labor markets in a simple counter factual experiment we show that in a world of perfect wage flexibility and no unemployment insurance the wage bill loss of old immigrants would be much smaller

evaluating the cost efficiency of the italian banking system what can be learned from the joint application of parametric and non parametric techniques abstract research on bank efficiency has developed in two separate streams econometric studies and data envelopment analysis a linear programming technique these two branches of literature have developed quickly but separately in this paper these two approaches have been tested on a common panel of 270 italian banks and this has suggested the following i econometric and linear programming results do not differ dramatically when based on the same data and conceptual framework ii when differences arise they can be explained by going back to the intrinsic features of the models moreover some findings on italian banks may be of interest also to the international reader i efficiency scores show a high variance ii the banking system is split in two between northern and southern banks iii there is a direct rather than inverse relationship between productive efficiency and asset quality iv the efficiency of italian banks did not increase over the period 1988 1992

banking efficiency in the nordic countries abstract evidence of the relative competitiveness of the banking industries in three nordic countries is provided by applying data envelopment analysis of productivity on the national and the pooled data sets the analysis produces a detailed account of how well banks from different countries and different sizes may be prepared to meet the more intense competition of a common european banking market

expectational diversity in monetary economies abstract we investigate an overlapping generations monetary economy in which expectations depend upon backward looking predictors of the future price level we use discrete choice theory to model how agents select a predictor based on its past forecast error letting the number of available predictors tend to infinity we obtain the large type limit of the system taking the large type limit dramatically reduces the number of free parameters while maintaining the expectational diversity which we argue is necessary for constructing plausible learning based models the model s dynamics are strongly influenced by the intensity of choice which measures how sensitive an agent s predictor choice is to differences in forecast errors across predictors when the intensity of choice is low the monetary steady state is stable as the intensity of choice increases and if certain parametric restrictions are met the system undergoes a hopf bifurcation in which case we document the existence of highly irregular equilibrium price paths

intertemporal separability in overlapping generations models abstract in a pure exchange overlapping generations model with many goods but a single consumer with preferences separable between two periods of life there are generically finitely many equilibria in which money has no value if money has value then generically there is at most one dimension of indeterminacy this property does not generalize to a model with many consumers and general preferences it is shown why a separable representative consumer implies such strong conclusions it is also shown that the absence of income effects leads to similar results

intertemporally separable overlapping generations economies abstract intertemporally separable overlapping generations economies typically have a sequentially finite number of equilibria though the equilibrium set may even with probability 1 be uncountable

immigrant native wage gaps in time series complementarities or composition effects previous research has shown that immigrants wages decrease when the supply of immigrants increases this negative correlation has been interpreted as evidence of immigrant native complementarities in production the present study finds that it is instead due to changing immigrant composition

the effect of competition on the efficiency of secondary schools in england abstract in this paper we calculate the technical efficiencies based upon multiple outputs school exam performance and attendance rates of all secondary schools in england over the period 1993 1998 we then estimate models to examine the determinants of efficiency in a particular year and the determinants of the change in efficiency over the period our results suggest that the greater the degree of competition between schools the more efficient they are the strength of this effect has also increased over time which is consistent with the evolution of the quasi market in secondary education competition is also found to be an important determinant of the change in efficiency over time there is however some evidence of conditional convergence between schools

productivity growth technical progress and efficiency change in industrialized countries this paper analyzes productivity growth in 17 oecd countries over the period 1979 1988 a nonparametric programming method activity analysis is used to compute malmquist productivity indexes these are decomposed into two component measures namely technical change and efficiency change we find that u s productivity growth is slightly higher than average all of which is due to technical change japan s productivity growth is the highest in the sample with almost half due to efficiency change jel c43 d24 in this paper we apply recently developed

gross substitutability in large square economies abstract this paper investigates the implications of gross substitutability of excess demand functions for the equilibria of exchange economies with countably many goods and arbitrarily many consumers we provide uniqueness theorems for general models we also show that the equilibrium trajectories of dynamic stationary overlapping generations economies satisfy strong turnpike properties in particular we are able to extend gale s characterization of the equilibrium dynamics of the model with one good per period one consumer per generation and two periods of life to models with many goods many consumers and many periods of life

multiplicity of equilibria and comparative statics conditions that guarantee the uniqueness of equilibrium in models of economic competition are crucial to applications of these models in exercises of comparative statics until now most of the attention given to the uniqueness question has been focused on pure exchange economies in this paper we use a topological index theorem to derive necessary and sufficient conditions for the uniqueness of equilibrium in economies with production unfortunately conditions that imply uniqueness appear to be too restrictive to have much applicability we argue for example that the only economically interpretable restrictions that imply uniqueness are either that the demand side of an economy behaves like a single consumer or that the supply side is an input output system our results suggest a need for reformulation of the comparative statics method

the effects of class size on student achievement new evidence from population variation abstract i identify the effects of class size on student achievement using longitudinal variation in the population associated with each grade in 649 elementary schools i use variation in class size driven by idiosyncratic variation in the population i also use discrete jumps in class size that occur when a small change in enrollment triggers a maximum or minimum class size rule the estimates indicate that class size does not have a statistically significant effect on student achievement i rule out even modest effects 2 to 4 percent of a standard deviation in scores for a 10 percent reduction in class size

separating managerial inefficiency and external conditions in data envelopment analysis abstract in this paper we highlight the importance of appropriately dealing with non controllable inputs in technical efficiency evaluations by using dea in order to do this the two most important options that exclusively use dea methodology for the incorporation of these variables the one stage model by banker and morey operations research 34 4 1986a 513 and the three stage method developed by fried and lovell searching the zeds working paper presented at ii georgia productivity workshop 1996 are compared both methodologically and empirically at the same time we propose a modification to the latter model which allows us to improve its results and interpretation the education sector has been selected for the empirical application the reason being that it has the desirable feature that in the productive process the students socio economic and family status a non controllable input has a direct influence on the school results the results obtained show the superiority of the multi stage approach it is argued that the model developed by banker and morey does not deal appropriately with inefficient units as producer s behaviour in this model does not reflect the objective situation faced by such dmus

local unemployment and the relative wages of immigrants evidence from the current population surveys abstract we provide evidence on wage profiles of immigrants using current population survey data from 1979 to 2003 taking into account that changes in labor market conditions impact natives and immigrants differently high rates of immigrant wage assimilation in general and relatively high wages of immigrant cohorts that arrived during the 1990s in particular can to a large extent be explained by a negative trend in unemployment in the data relating immigrant and native period effects to local labor market unemployment we find that wage assimilation among lesser educated immigrants is negligible for high school and college educated male immigrants rates of wage assimilation during early years in the united states are procyclical suggesting that rising unemployment slows accumulation of u s specific human capital

immigration and inequality immigration is often viewed as a proximate cause of the rising wage gap between highand low skilled workers nevertheless there is controversy over the appropriate theoretical and empirical framework for measuring the presumed effect and over the precise magnitudes involved this paper offers an overview and synthesis of existing knowledge on the relationship between immigration and inequality focusing on evidence from cross city comparisons in the u s while some researchers have claimed that a cross city research design is inherently flawed i argue that the evidence from cross city comparisons is remarkably consistent with recent findings based on aggregate time series data in particular cross city and aggregate time series comparisons provide support for three key conclusions 1 workers with below high school education are perfect substitutes for those with a high school education 2 high school equivalent and college equivalent workers are imperfect substitutes with an elasticity of substitution on the order of 2 3 within education groups immigrants and natives are imperfect substitutes together these results imply that the average impacts of recent immigrant inflows on the relative wages of u s natives are small the effects on overall wage inequality including natives and immigrants are larger reflecting the concentration of immigrants in the tails of the skill distribution and higher residual inequality among immigrants than natives even so immigration accounts for a small share 5 of the increase in u s wage inequality between 1980 and 2000

technical efficiency and scale efficiency in the italian banking sector a non parametric approach measures of technical and scale efficiencies are derived in the italian banking industries by implementing non parametric data envelopment analysis on a cross section of 174 italian banks taken in 1991 the methodology of the parametric and non parametric approaches to measure efficiency are discussed the existence of both technical and allocative efficiency is established this result is robust to modifications in the specification of inputs and outputs suggested by the intermediation approach and by the asset approach in implementing both the intermediation and the asset approach the traditional specification of inputs is modified to allow an explicit role for financial capital in addition regression analysis is used on a bank specific measure of inefficiency to investigate determinants of banks efficiency efficiency is best explained by productive specialization size and to a lesser extent by location