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We employ a wide range of parametric and non-parametric cost frontiers' e¤ciency estimation methods to estimate economic e¤ciency and economies of scale, using the same panel data of 22 Taiwanese commercial banks over the period 1982^97. According to our empirical implementation, the two methodologies yield similar average e¤ciency estimates, yet they come to very dissimilar results pertaining to the e¤ciency rankings, the stability of measured e¤ciency over time, the consistency between frontier e¤ciency and conventional performance measures, and the estimates of scale economies. Thus, the choice of an estimation approach can result in very di¡erent conclusions and policy implications regarding cost e¤ciencies and cost economies. These ¢ndings suggest that making policy decisions and evaluations relies on multiple techniques and speci¢cations.

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