The efficiency and productivity of Japanese securities firms, 1988-93

Non-parametric linear programming methods are used to construct the product ion technology and measure overall cost efficiency for Japanese securities firms during the period 1988-93. Overall cost efficiency is decomposed into allocative efficiency, pure technical efficiency, scale efficiency, and co ngestion efficiency. The Malmquist input-based productivity index is also c onstructed and used to compare productivity change between the Big Four Jap anese securities firms and other securities firms. The effects of various k eiretsu links between securities firms and banks on overall cost efficiency are also examined. (C) 1999 Elsevier Science B.V.