Purpose – The purpose of this paper is to explore the issues of efficiency, economies of scale and technical change in Southern European banking. Design/methodology/approach – The flexible Fourier functional form of the stochastic cost frontier approach is used to calculate inefficiencies...

This paper explores the issue of banking efficiency in Europe by applying the Fourier functional form and the stochastic cost frontier approach in calculating inefficiencies for a large sample of European banks between 1998 and 2004. This paper provides recent evidence on the degree of...

This paper explores the issue of banking efficiency and productivity in Europe by applying the directional technology distance function to calculate efficiency and productivity measures for a large sample of European banks between 2004 and 2010. The results indicate that inefficiencies range...