S/N | Article | Input Variables | Output Variables | Cobb-Douglas Model | Summary results. |
1 | | Prices of labour, management services, and capital-premises | Profits and number of participants. | Cobb-Douglas stochastic cost frontier model. | The efficiency score of each pension manager was derived and this could be used to predict their future capacity to earn fair returns for the participants. |
2 | | Labour, Capital and material inputs Labour input follows | Sum of total amount of deposits and advances of a bank. | Stochastic frontier production function. | Foreign bank group was 1% less efficient than the domestic. The banks were found to record the same level of efficiencies. |
3 | | Deposits were used as both inputs and outputs at the same time. The inputs are borrowed funds, labour, and physical capital. | The output variables include loans, deposits, and other earning assets. | Stochastic Cost frontier approach. | The study found that banks that were involved in cross-border mergers are more cost efficient when compared to banks that were involved in domestic mergers. |
4 | | Expenses on wages and salaries, land, buildings, & equipment and interest per dollar of deposits | Dollar amounts of commercial, industrial and other loans; time deposits, demand deposits, and securities & investments. | Stochastic cost function model. | The study found significant differences in efficiency across ASEAN banks with the Thai bank being the least efficient. Larger banks seem to be less technical efficient compared to smaller banks. |
5 | | All core deposits and purchased funds and financial equity capital. Also, wage rate, the interest rate for borrowed funds, and price of physical capital. | Consumer loan, non-consumer loans such as industrial & commercial loans & real estate loans; and securities. | Frontier stochastic cost function. | Banks with assets greater than $1 billion in 1998 are less efficient than the other subgroups. Also, the largest four banks subgroups (with assets greater than $400 million) experienced significant productivity gains when compared to the smallest eight banks subgroups. |
6 | | Labour, capital and materials. | Amount of life insurance, total annuity, total premiums, and investment. | Stochastic cost function model. | The study found significant cost inefficiency in the life insurance industry when compared to earnings and that there is negative relationship between inefficiency and profitability. |