caa a22 4500 467895945 CHVBK 20180406152804.0 cr unu---uuuuu 170328e20060301xx s 000 0 eng 10.1007/s00181-005-0043-4 doi (NATIONALLICENCE)springer-10.1007/s00181-005-0043-4 Khumbhakar Subal Department of Economics, State University of New York-Binghamton, 13902, Binghamton, NY, USA aut Specification and estimation of nonstandard profit functions [Elektronische Daten] [Subal Khumbhakar] This paper critically examines appropriateness of the nonstandard profit function (NSPF) as a tool for measuring profit efficiency. We show that there are some fundamental problems with the NSPF approach, the way it is currently specified and estimated. This is true irrespective of whether technical inefficiency is included or not. Instead of estimating profit efficiency directly from the NSPF, we suggest alternative specifications and recommend using the cost function approach and deriving profit efficiency therefrom. Data from US banks are used to estimate the cost function and the NSPF. Results from alternative specifications are then compared and analyzed. Springer-Verlag, 2006 Cost function nationallicence Profit maximization nationallicence Non-competitive market nationallicence Technical inefficiency nationallicence Commercial banks nationallicence Empirical Economics Springer-Verlag 31/1(2006-03-01), 243-260 0377-7332 31:1<243 2006 31 181 https://doi.org/10.1007/s00181-005-0043-4 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s00181-005-0043-4 text/html Onlinezugriff via DOI NATIONALLICENCE 100 1- Khumbhakar Subal Department of Economics, State University of New York-Binghamton, 13902, Binghamton, NY, USA aut NATIONALLICENCE 773 0- Empirical Economics Springer-Verlag 31/1(2006-03-01), 243-260 0377-7332 31:1<243 2006 31 181 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer