Stochastic Frontiers. Case Study – Japanese Banking System

The paper aims to calculate the average estimate of efficiency of Japanese banking system over a period of time, being given certain inputs and outputs that describe the main activities of analyzed banks. Stochastic Frontier Analysis have been used to calculate the scores, also allowing a comparison with other comparable techniques (Data Envelopment Analysis, COLS). I expect to come to average values of efficiency similar to studies conducted before this research.