This paper proposes and estimates a globally flexible functional form for the cost function, which we call Neural Cost Function (NCF). The proposed specification imposes a priori and satisfies globally all the properties that economic theory dictates. The functional form can be estimated easily...

This paper specifies an empirical framework for estimating both technical and allocative efficiency using the translog cost-share system, thus providing a solution to the issue known in the literature as the Greene problem. The model is applied to a large panel of European banks and the results...

This paper specifies an empirical framework for estimating both technical and allocative efficiency, which is applied to a large panel of European banks over the years 1996 to 2003. Our methodology allows for self-consistent measurement of technical and allocative inefficiency, in an effort to...