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Written by production economics and finance specialists Rolf Färe and Shawna Grosskopf of Oregon State University and Dimitris Margaritis of the University of Auckland, Pricing Non-marketed Goods Using Distance Functions, is an inspiring new contribution highlighting the importance of duality theory for valuation purposes, especially for hard to price inputs or resources, intended or unintended goods and assets. The theoretical pricing models are supplemented by self-standing empirical applications covering real estate pricing, environmental preservation, transfer pricing, shadow prices of university knowledge outputs and spillovers, and the pricing of bank equity capital and non-performing loans

"The book uses distance functions, a generalization of the more familiar production function, as the theoretical and empirical tools to construct Lerner indexes of market power in both the input and output markets. The use of distance functions enables us to explicitly account for the effects of firm inefficiency and price markups in the evaluation of market power. The book focusses on the theory and provides a menu of applications to construct measures of firm efficiency and market power in the financial and public sectors."

"Data Envelopment Analysis (DEA) is often overlooked in empirical work such as diagnostic tests to determine whether the data conform with technology which, in turn, is important in identifying technical change, or finding which types of DEA models allow data transformations, including dealing with ordinal data. Advances in Data Envelopment Analysis focuses on both theoretical developments and their applications into the measurement of productive efficiency and productivity growth, such as its application to the modelling of time substitution, i.e. the problem of how to allocate resources over time, and estimating the "value" of a Decision Making Unit (DMU)"--

In this paper, we examine the impact of the global financial crisis (GFC) on the interest rate pass-through for four types of loans in Australia: mortgages, residentially secured small business lending, nonsecured small business lending and personal loans. Australia is an interesting case study since its central bank lowered but also raised interest rates during the GFC. We find that after the onset of the crisis, there has been a shift in the way banks adjust their lending rates in response to changes in market interest rates; the markup has increased and there has been a drop in both short- and long-term pass-through from funding costs to lending rates. Closer analysis indicates that the drop in short-term pass-through is due to the slower response of banks to increases in funding costs. We also find asymmetries in the way banks adjust lending rates in relation to funding costs in the long-run for nonsecured small business lending and personal loans. The evidence shows that banks in Australia tightened lending standards and competed less aggressively for loans but more for deposits in response to heightened default risks following the global financial crisis. The wider margin allows banks to adjust their lending rates more slowly and asymmetrically.