Cost efficiency and UK building societies. An econometric panel-data study employing a flexible fourier functional form

摘要

The paper empirically quantifies firm specific 'distribution free' cost efficiency,udeconomies of scale and economies of scope in the UK building society sector betweenud1990-1995. Both a flexible Fourier and a translog functional form are employed withudan intermediation representation of depository institution production. Differences inudthe performance of these two functional forms are found. A broad distribution of costudefficiency over the sample period is observed, with a mean efficiency of 76 per centudestimated using the flexible Fourier form and a mean efficiency of 72.52 per centudestimated employing the translog form. Distinct results for economies of scale areudproduced with the two models.