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

Non-parametric linear programming methods are used to construct the production 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 congestion efficiency. The Malmquist input-based productivity index is also constructed and used to compare productivity change between the Big Four Japanese securities firms and other securities firms. The effects of various keiretsu links between securities firms and banks on overall cost efficiency are also examined. (C) 1999 Elsevier Science B.V.