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Emmanuel Mamatzakis and Christos Triantopoulos
 
''Allocative and technical efficiency of social banks vis a vis conventional banks''
( 2022, Vol. 42 No.4 )
 
 
This paper investigates the technical and allocative efficiency of social banks vis-a-vis conventional banks. We propose a simple modeling approach of stochastic frontier analysis that identifies both allocative and technical efficiency. The estimation is rather cumbersome, and we opt for a simple likelihood function and Maximum Likelihood estimator. We, then, employ a bank-level data set for social banks that provide credit to social firms and conventional banks. Stochastic frontier analysis results are of interest as they show that social banks are underperforming in terms of both technical and allocative inefficiency.
 
 
Keywords: Social banks; Technical efficiency; allocative efficiency; Maximum Likelihood.
JEL: G2 - Financial Institutions and Services: General
C4 - Econometric and Statistical Methods: Special Topics
 
Manuscript Received : Jun 15 2022 Manuscript Accepted : Dec 30 2022

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