Data envelopment analysis (DEA) and stochastic frontier analysis (SFA), as well as combinations thereof, are widely applied in incentive regulation practice, where the assessment of efficiency plays a major role in regulation design and benchmarking. Using a Monte Carlo simulation experiment,...

A simple graphical approach to presenting results from nonlinear regression models is described. In the face of multiple covariates, 'partial mean' plots may be unattractive. The approach here is portable to a variety of settings and can be tailored to the specific application at hand. A simple...

We study the differential impact of exchange rate volatility on cost efficiency and market structure when banks have non-trivial exposures to foreign currency operations. First, we document that cost efficiency estimates are both severely downward biased by 30% on average and generally not rank...