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Profit Efficiency in Lithuanian Credit Unions – A Dea Approach

Author

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  • Kėdaitis Vytautas
  • Mikučionytė Žymantė

    (Vilnius University, Saulėtekio Ave. 22, LT-10225, Vilnius, Lithuania)

  • Baležentis Tomas

    (Vilnius University, Saulėtekio Ave. 22, LT-10225, Vilnius, Lithuania)

  • Valkauskas Romualdas

    (Department of Quantitative Methods and Modelling, Faculty of Economics and Business Administration, Vilnius University, Sauletekio Ave. 9, LT-10222 Vilnius, Lithuania)

Abstract

The paper proceeds by discussing the different definitions of credit unions. The research focuses on the efficiency of the credit unions in Lithuania. Indeed, efficiency is the degree to which the rational use of limited economic resources is ensured. More specifically, we focus on the economic efficiency of the credit unions. The methodology that is followed in the paper comprises the measures of cost and profit efficiency. Further on, profit efficiency is defined in terms of both standard profit efficiency and alternate profit efficiency. The measures of efficiency are implemented via the data envelopment analysis (DEA). The frontier model comprises the two outputs and the three inputs. The calculations confirm the operationality of the proposed methodology for rating credit unions according to the efficiency of their activity

Suggested Citation

  • Kėdaitis Vytautas & Mikučionytė Žymantė & Baležentis Tomas & Valkauskas Romualdas, 2017. "Profit Efficiency in Lithuanian Credit Unions – A Dea Approach," Ekonomika (Economics), Sciendo, vol. 96(3), pages 90-101, January.
    • Handle: RePEc:vrs:ekonom:v:96:y:2017:i:3:p:90-101:n:7
    DOI: 10.15388/ekon.2017.3.11575
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    References listed on IDEAS

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