Bank Cost Efficiency and Output Specification
Tóm tắt
There is a longstanding controversy over precisely what it is that banks produce. However, there is little evidence on the sensitivity of bank cost efficiency results when different output definitions are applied. This paper does exactly that. In particular, we compare nonparametric efficiency scores yielded by two output specifications, one mainly identified with the asset approach and the other which also considers deposits as output. Results show that distributions of efficiency scores, estimated nonparametrically by means of kernel smoothing, vary greatly. In addition, firms' positions relative to the mean change according to either output definition, and results do not remain constant over time.
Tài liệu tham khảo
citation_journal_title=Annals of Statistics; citation_title=On Bandwidth Variation in Kernel Estimates—A Square Root Law; citation_author=I. S. Abramson; citation_volume=9; citation_publication_date=1982; citation_pages=168-176; citation_id=CR1
citation_journal_title=Journal of Money, Credit, and Banking; citation_title=Bank Ownership and Efficiency; citation_author=Y. Altunba?, L. Evans, P. Molyneux; citation_volume=33; citation_issue=4; citation_publication_date=2001; citation_pages=926-954; citation_id=CR2
citation_journal_title=European Economic Review; citation_title=Efficiency in European Banking; citation_author=Y. Altunba?, L. Evans, P. Molyneux; citation_volume=45; citation_publication_date=2001; citation_pages=1931-1955; citation_id=CR3
citation_journal_title=Journal of Economics and Business; citation_title=Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency Methods; citation_author=P. W. Bauer, A. N. Berger, G. D. Ferrier, D. B. Humphrey; citation_volume=50; citation_issue=2; citation_publication_date=1998; citation_pages=85-114; citation_id=CR4
citation_journal_title=The Journal of Productivity Analysis; citation_title=Technical Efficiency of Norwegian Banks: The Non-Parametric Approach to Efficiency Measurement; citation_author=S. A. Berg, F. R. Førsund, E. S. Jansen; citation_volume=2; citation_publication_date=1992; citation_pages=127-142; citation_id=CR5
Berger, A. N. and R. DeYoung. (2002). “The Effects of Geographic Expansion on Bank Efficiency.” Journal of Financial Services Research, forthcoming.
citation_journal_title=Journal of Monetary Economics; citation_title=Competitive Viability in Banking: Scale, Scope, and Product Mix Economies; citation_author=A. N. Berger, G. A. Hanweck, D. B. Humphrey; citation_volume=20; citation_publication_date=1987; citation_pages=501-520; citation_id=CR7
citation_title=Measurement and Efficiency Issues in Commercial Banking; citation_inbook_title=Output Measurement in the Service Sectors; citation_publication_date=1992; citation_pages=245-300; citation_id=CR8; citation_author=A. N. Berger; citation_author=D. B. Humphrey; citation_publisher=The University of Chicago Press
citation_journal_title=European Journal of Operational Research; citation_title=Efficiency of Financial Institutions: International Survey and Directions for Future Research; citation_author=A. N. Berger, D. B. Humphrey; citation_volume=98; citation_publication_date=1997; citation_pages=175-212; citation_id=CR9
citation_journal_title=Journal of Monetary Economics; citation_title=The Efficiency of Bank Branches; citation_author=A. N. Berger, J. H. Leusner, J. J. Mingo; citation_volume=40; citation_publication_date=1997; citation_pages=141-162; citation_id=CR10
Berger, A. N. and L. J. Mester. (2001). “Explaining the Dramatic Changes in Performance of U.S. Banks: Technological Change, Deregulation, and Dynamic Changes in Competition.” Working Paper 01-6, Federal Reserve Bank of Philadelphia.
citation_journal_title=Journal of Money, Credit, and Banking; citation_title=Economimic Cost, Scale Efficiency, and CompetitiveViability in Banking; citation_author=J. A. Clark; citation_volume=28; citation_publication_date=1996; citation_pages=342-364; citation_id=CR12
citation_journal_title=Journal of Banking and Finance; citation_title=How the Environment Determines Banking Efficiency. A Comparison Between French and Spanish Industries; citation_author=M. Dietsch, A. Lozano-Vivas; citation_volume=24; citation_publication_date=2000; citation_pages=985-1004; citation_id=CR13
citation_journal_title=Journal of Nonparametric Statistics; citation_title=On Goodness-of-Fit Tests forWeekly Dependent Processes using Kernel Method; citation_author=Y. Fan, A. Ullah; citation_volume=11; citation_publication_date=1999; citation_pages=337-360; citation_id=CR14
citation_journal_title=Applied Economics; citation_title=Technical Efficiency and Scale Efficiency in the Italian Banking Sector: A Non-Parametric Approach; citation_author=C. A. Favero, L. Papi; citation_volume=27; citation_publication_date=1995; citation_pages=385-395; citation_id=CR15
citation_journal_title=Journal of Econometrics; citation_title=Measuring Cost Efficiency in Banking; citation_author=G. D. Ferrier, C. A. K. Lovell; citation_volume=46; citation_publication_date=1990; citation_pages=229-245; citation_id=CR16
citation_journal_title=Journal of Economics and Management Strategy; citation_title=Strategic and Queue Effects on Entry in Spanish Banking; citation_author=L. Fuentelsaz, J. Gómez; citation_volume=10; citation_issue=4; citation_publication_date=2001; citation_pages=529-563; citation_id=CR17
citation_journal_title=Strategic Management Journal; citation_title=Followers' Entry Timing: Evidence from the Spanish Banking Sector after Deregulation; citation_author=L. Fuentelsaz, J. Gómez, Y. Polo; citation_volume=23; citation_issue=3; citation_publication_date=2002; citation_pages=245-264; citation_id=CR18
citation_title=A Theory of Production for the Financial Firm; citation_publication_date=1991; citation_id=CR19; citation_author=D. Hancock; citation_publisher=Kluwer Academic Publishers
citation_journal_title=Journal of Money, Credit, and Banking; citation_title=Core Deposits and Physical Capital: A Reexamination of Bank Scale Economies and Efficiency with Quasi-Fixed Inputs; citation_author=W. C. Hunter, S. Timme; citation_volume=27; citation_publication_date=1995; citation_pages=165-185; citation_id=CR20
citation_journal_title=Journal of Money, Credit, and Banking; citation_title=A Theory of the Banking Firm; citation_author=M. A. Klein; citation_volume=3; citation_publication_date=1971; citation_pages=261-275; citation_id=CR21
citation_journal_title=Journal of Money, Credit, and Banking; citation_title=The Effects of Deregulation on the Performance of Financial Institutions: The Case of Spanish Savings Banks; citation_author=S. C. Kumbhakar, A. Lozano-Vivas, C. A. K. Lovell, I. Hasan; citation_volume=33; citation_issue=1; citation_publication_date=2001; citation_pages=101-120; citation_id=CR22
Kuussaari, H. (1993). “Productive Efficiency in Finnish Local Banking during 1985-1990.” Discussion Paper 14/93, Bank of Finland.
citation_journal_title=Econometric Reviews; citation_title=Nonparametric Testing of Closeness between Two Unknown Distribution Functions; citation_author=Q. Li; citation_volume=15; citation_publication_date=1996; citation_pages=261-274; citation_id=CR24
citation_journal_title=Journal of Banking and Finance; citation_title=Market Structure and Performance in Spanish Banking; citation_author=D. M. Lloyd-Williams, P. Molyneux, J. Thornton; citation_volume=18; citation_publication_date=1994; citation_pages=433-443; citation_id=CR25
citation_journal_title=Journal of Banking and Finance; citation_title=Resolving the Scale Efficiency Puzzle in Banking; citation_author=P. H. McAllister, D. A. McManus; citation_volume=17; citation_publication_date=1993; citation_pages=389-405; citation_id=CR26
citation_journal_title=Journal of Money, Credit, and Banking; citation_title=Economies of Scale and Scope at Large Commercial Banks: Evidence from the Fourier Flexible Functional Form; citation_author=K. Mitchell, N. M. Onvural; citation_volume=28; citation_publication_date=1996; citation_pages=178-199; citation_id=CR27
citation_journal_title=Journal of the American Statistical Association; citation_title=Comparison of Data-Driven Bandwidth Selectors; citation_author=B. U. Park, J. S. Marron; citation_volume=85; citation_issue=409; citation_publication_date=1990; citation_pages=66-72; citation_id=CR28
citation_journal_title=Computational Statistics; citation_title=Practical Performance of Several Data-Driven Bandwidth Selectors; citation_author=B. U. Park, B. A. Turlach; citation_volume=7; citation_publication_date=1992; citation_pages=251-285; citation_id=CR29
citation_title=Product Mix of the Spanish Banking Firms: Do Competition Clubs Exist?; citation_inbook_title=Bank Strategies and Challenges in the New Europe; citation_publication_date=2001; citation_pages=139-163; citation_id=CR30; citation_author=F. Pérez; citation_author=E. Tortosa-Ausina; citation_publisher=Palgrave
citation_journal_title=European Economic Review; citation_title=Empirics for Economic Growth and Convergence; citation_author=D. T. Quah; citation_volume=40; citation_publication_date=1996; citation_pages=1353-1375; citation_id=CR31
citation_journal_title=Journal of Banking and Finance; citation_title=Evaluating the Cost-Efficiency of the Italian Banking System: What can be Learned from the Joint Application of Parametric and Non-Parametric Techniques?; citation_author=A. Resti; citation_volume=21; citation_publication_date=1997; citation_pages=221-250; citation_id=CR32
citation_title=Multivariate Density Estimation: Theory, Practice, and Visualization; citation_publication_date=1992; citation_id=CR33; citation_author=D. W. Scott; citation_publisher=Wiley
citation_journal_title=Journal of Finance; citation_title=Inputs, Outputs and a Theory of Production and Cost at Depository Financial Institutions; citation_author=C. W. Sealey, J. T. Lindley; citation_volume=32; citation_issue=4; citation_publication_date=1977; citation_pages=1251-1266; citation_id=CR34
citation_journal_title=Journal of the Royal Statistical Society, Ser. B; citation_title=A Reliable Data-Based Bandwidth Selection Method for Kernel Density Estimation; citation_author=S. J. Sheather, M. C. Jones; citation_volume=53; citation_issue=3; citation_publication_date=1991; citation_pages=683-690; citation_id=CR35
citation_title=Density Estimation for Statistics and Data Analysis; citation_publication_date=1986; citation_id=CR36; citation_author=B. W. Silverman; citation_publisher=Chapman and Hall
citation_journal_title=Management Science; citation_title=Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models; citation_author=L. Simar, P. W. Wilson; citation_volume=44; citation_issue=1; citation_publication_date=1998; citation_pages=49-61; citation_id=CR37
citation_journal_title=Journal of Productivity Analysis; citation_title=Statistical Inference in Nonparametric Frontier Models: The State of the Art; citation_author=L. Simar, P. W. Wilson; citation_volume=13; citation_issue=1; citation_publication_date=2000; citation_pages=49-78; citation_id=CR38
citation_title=Smoothing Methods in Statistics; citation_publication_date=1996; citation_id=CR39; citation_author=J. S. Simonoff; citation_publisher=Springer
citation_title=Recursive Methods in Economic Dynamics; citation_publication_date=1989; citation_id=CR40; citation_author=N. L. Stokey; citation_author=R. E. Lucas; citation_publisher=Massachusetts: Harvard University Press
citation_journal_title=Annals of Statistics; citation_title=VariableKernel Density Estimation; citation_author=G. R. Terrell, D. W. Scott; citation_volume=20; citation_issue=3; citation_publication_date=1992; citation_pages=1236-1265; citation_id=CR41
citation_journal_title=Journal of Public Economics; citation_title=Sensitivity Analysis for DEA Models. An Empirical Example using Public vs. NFP Hospitals; citation_author=V. Valdmanis; citation_volume=48; citation_issue=2; citation_publication_date=1992; citation_pages=185-205; citation_id=CR42
citation_journal_title=Annals of Statistics; citation_title=Probability Density Estimation using Delta Sequences; citation_author=G. Walter, J. R. Blum; citation_volume=7; citation_issue=2; citation_publication_date=1979; citation_pages=328-340; citation_id=CR43
citation_journal_title=Computational Statistics; citation_title=Multivariate Plug-in Bandwidth Selection; citation_author=M. P. Wand, M. C. Jones; citation_volume=9; citation_publication_date=1994; citation_pages=97-116; citation_id=CR44
citation_title=Kernel Smoothing; citation_publication_date=1995; citation_id=CR45; citation_author=M. P. Wand; citation_author=M. C. Jones; citation_publisher=Chapman and Hall
citation_journal_title=Journal of Monetary Economics; citation_title=New Evidence on Returns to Scale and Product Mix among US Commercial Banks; citation_author=D. C. Wheelock, P. W. Wilson; citation_volume=47; citation_publication_date=2001; citation_pages=653-674; citation_id=CR46