This paper employs a Bayesian stochastic frontier, providing exact inference on both cost and profit efficiencies of the Indian banking sector in the period of 2000-2006. We also test for the inclusion of off-balance sheet data in model specification. The findings suggest that public banks are...

This paper analyzes the efficiency of the Brazilian banking sector over the post-privatization period of 2000-2007. We employ a Bayesian stochastic frontier approach, which provides exact efficiency estimates and confidence intervals and thus, allows an accurate comparison across institutions...