Profit Efficiency in Lithuanian Credit Unions – a DEA Approach
Articles
Vytautas Kėdaitis
Tomas Baležentis
Romualdas Valkauskas
Žymantė Mikučionytė
Published 2018-01-31
https://doi.org/10.15388/Ekon.2017.3.11575
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Keywords

credit unions
efficiency activity
the measures of efficiency
date envelopment analysis

How to Cite

Kėdaitis V., Baležentis T., Valkauskas R. and Mikučionytė Žymantė (2018) “Profit Efficiency in Lithuanian Credit Unions – a DEA Approach”, Ekonomika, 96(3), pp. 90-101. doi: 10.15388/Ekon.2017.3.11575.

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.

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