Output allocative and technical efficiency of banks

Article examines the output allocative and technical efficiency for a sample of small banks operating in 1982. Data was obtained from the Federal Reserve's Functional Cost Analysis program. Information on quantities and prices of outputs and quantities of inputs were required for the study. Inputs included labor, interest bearing small deposits, occupancy expense and purchased or borrowed funds. Outputs included property and commercial loans, consumer loans and investments in US securities. Results indicated that the banks in the sample were output inefficient.