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The paper empirically quantifies technical change for the UK retail banking sector between 1984 and 1995. A time trend model is used to measure average technical change. Bank production is represented with ‘intermediation’ and ‘production’ models. Translog cost models are estimated using a SUR estimator on pooled time series and cross sectional data. Distinct results for differing model specifications are evident. This change appears to vary in magnitude within the sample period.
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