The x-efficiency and allocative efficiency effects of credit union mergers

Kaylee A. Garden, Deborah E. Ralston

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The relative efficiency effects of Australian credit union mergers are examined. The period of investigation is June 1992-June 1997, which allows the examination of 16 credit union mergers in the 1993-1994 financial year. Multiple regression is applied to examine the impact of credit union mergers on x-efficiency and allocative efficiency. The data envelopment analysis (DEA) frontier approach is used to provide measures of x-efficiency and allocative efficiency. Results provide statistical evidence that, on average, credit union mergers do not result in an increase in x-efficiency or allocative efficiency postmerger relative to other credit unions.

Original languageEnglish
Pages (from-to)285-301
Number of pages17
JournalJournal of International Financial Markets, Institutions and Money
Issue number3
Publication statusPublished - Aug 1999
Externally publishedYes


  • Credit unions
  • Efficiency
  • Mergers

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