A STOCHASTIC FRONTIER ANALYSIS OF UKRAINIAN BANKS EFFICIENCY

Keywords: cost efficiency, trans-logarithmic function, profit efficiency, intermediation approach, production approach, Stochastic Frontier Analysis.

Abstract

 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.

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Published
2018-12-20
How to Cite
Kyshakevych, B., & Mazharov, D. (2018). A STOCHASTIC FRONTIER ANALYSIS OF UKRAINIAN BANKS EFFICIENCY. Scientific Journal of Polonia University, 31(6), 27-40. https://doi.org/10.23856/3103