A non-parametric programming approach is utilized in order to analyse the overall technical efficiency of UK building societies and to decompose this measure into its subcomponents, pure technical and scale efficiency. Non-parametric statistical analysis and regression analysis are subsequently used to test the relationship between asset size and the various measures of efficiency. The use of 1988 data (post 1986 Building Societies Act) permits the non-parametric analysis of building society efficiency to be conducted in a multi-product context.
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Drake et al. (1992) studied this question.
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