BazEkon - Biblioteka Główna Uniwersytetu Ekonomicznego w Krakowie

BazEkon home page

Meny główne

Autor
Jarraya Bilel
Tytuł
Parametric Meta-Technology Frameworks to Study Technical Efficiency and Macro-Economic Effects in the European Banking System
Źródło
Contemporary Economics, 2014, vol. 8, nr 1, s. 73-88, tab.,wykr., bibliogr. 52 poz.
Słowa kluczowe
Efektywność banków, Rozwój technologiczny, Badanie zależności makroekonomicznych
Banks` effectiveness, Technological development, Research of macroeconomic relationships
Uwagi
summ.
Abstrakt
Bank efficiency scores usually serve as a tool for comparing institutions with each other while allowing us to quantify sub-optimal decision-making unit choices. In the case of inter-country comparisons, such differences can also arise because of macro-economic heterogeneity between countries. Previous studies estimated a common technology limit for a sample of banking institutions in different countries. The contribution of our paper is that we employ a parametric approach to specify meta-frontiers and to study the effect of macro-economic heterogeneity on banking technology development. First, we use a parametric directional distance function to specify the appropriate technology frontier for each nation and the meta-technology frontier that includes all country-specific frontiers. Then, we define the directional technology gap ratio referring to the inefficiency scores evaluated from meta-technology and country-specific technology frontiers. The estimated parameters are more significant in our model than in the general model, also called the common frontier model. Comparing the results of our model to those of common frontiers, we find a substantial variation not only in inefficiency scores but also in countries' rankings. While resorting to a pooled linear regression model, we demonstrate that the assessed technology gap ratio exhibits a significant association with inflation rates and per capita GDP. This result proves the influence of macro-economic heterogeneity on banks' efficiency and technological development. (original abstract)
Pełny tekst
Pokaż
Bibliografia
Pokaż
  1. Aigner, D. J., & Chu, S. J. (1968). On estimating the industry production function. American Economic Review, 58 (4), 826-839.
  2. Allen, L., & Rai, A. (1996). Operational Efficiency in Banking: An International Comparison. Journal of Banking and Finance, 20 (4), 655-672.
  3. Battese, G. E., & Rao, D. S. P. (2002). Technology Gap, Efficiency and a Stochastic Metafrontier Function. International Journal of Business and Economics, 1 (2), 1-7.
  4. Battese, G. E., Rao, D. S. P., & O'Donnell, C. J. (2004). A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies. Journal of Productivity Analysis, 21 (1), 91-103.
  5. Berg, S., Førsund, F., Hjalmarsson, L., & Suominen, M. (1993). Banking efficiency in the Nordic countries. Journal of Banking and Finance, 17 (2-3), 371-388.
  6. Berg, S., Førsund, F., & Jansen, E. (1992). Malmquist indices of productivity growth during the deregulation of Norwegian banking 1980-89. Scandinavian Journal of Economics, 94 (Suppl.), 211-228.
  7. Berger, A. N., Bonime, S. D., Covitz, D. M., & Hancock, D. (2000). Why Are Bank Profits So Persistent? The Roles of Product Market Competition, Informational Opacity, and Regional/Macroeconomic Shocks. Journal of Banking and Finance, 24 (7), 1203-1235.
  8. Berger, A. N., & Humphrey, D. B. (1991). The dominance of inefficiencies over scale and product mix economies in banking. Journal of Monetary Economics, 28 (1), 117-148.
  9. Berger, A. N., & Humphrey, D. B. (1992). Measurement and Efficiency Issues in Commercial Banking. In Z. Griliches (Ed.), Output Measurement in the Service Sectors (pp. 245-300). Chicago, IL: University of Chicago Press.
  10. Berger, A. N., & Mester, L. J. (1997). Inside the black box: What explains differences in the efficiencies of financial institutions. Journal of Banking and Finance, 21 (7), 895-947.
  11. Bikker, J. A. (2002). Efficiency and Cost Differences across Countries in a Unified European Banking Market (Staff Report No. 87). Amsterdam: Netherlands Central Bank, Directorate Supervision. Retrieved from http://www.dnb.nl/binaries/ sr087_tcm46-146864.pdf.
  12. Bos, J. W. B., & Kolari, J. W. (2005). Large bank efficiency in Europe and the United States: Are there economic motivations for geographic expansion in financial services? Journal of Business, 78 (4), 1555-1592.
  13. Bos, J. W. B., & Schmiedel, H. (2007). Is there a single frontier in a single European banking market?. Journal of Banking and Finance, 31 (7), 2081-2102.
  14. Bottasso, A., & Sembenelli, A. (2004). Does ownership affect firms' efficiency? Panel data evidence on Italy. Empirical Economics, 29 (4), 769-786.
  15. Boyd, J. H., Levine, R., & Smith, B. D. (2001). The impact of inflation on financial sector performance. Journal of Monetary Economics, 47 (2), 221-248.
  16. Chaffai, M. E., Dietsch, M., & Lozano-Vivas, A. (2001). Technological and environmental differences in the European banking industries. Journal of Financial Services Research, 19 (2-3), 147-162.
  17. Chambers, R. G., Chung, Y. H., & Färe, R. (1996). Benefit and distance functions. Journal of Economic Theory, 70 (2), 407-419.
  18. Chang, C. E., Hasan, I., & Hunter, W. C. (1998). Efficiency of multinational banks. An empirical investigation. Applied Financial Economics, 8 (6), 689-696.
  19. Demirguc-Kunt, A., Laeven, L., & Levine, R. (2004). Regulations, market structure, institutions, and the cost of financial intermediation. Journal of Money, Credit and Banking, 36 (3), 593-622.
  20. DeYoung, R., & Nolle, D. E. (1996). Foreign-owned banks in the US: Earning market share or buying it? Journal of Money, Credit and Banking, 28 (4), 622-636.
  21. Dietsch, M., & Lozano-Vivas, A. (2000). How the Environment Determines Banking Efficiency: A Com-parison between French and Spanish Industries. Journal of Banking and Finance, 24 (6), 985-1004.
  22. Färe, R., Grosskopf, S., Noh, D. W., & Weber, W. (2005). Characteristics of a polluting technology: theory and practice. Journal of Econometrics, 126 (2), 469-492.
  23. Fukuyama, H., & Weber, W. L. (2008). Japanese banking inefficiency and shadow pricing. Mathematical and Computer Modelling, 48 (11-12), 1854-1867.
  24. Hachicha, N., & Jarraya, B. (2010). Corporate Governance Productivity Index In Banking Industry: Evidence from The European Banking Industry. Banking and Finance Review, 2 (1), 37-56.
  25. Hauner, D. (2005). Explaining efficiency differences among large German and Austrian banks. Applied Economics, 37 (9), 969-980.
  26. Hayami, Y., & Ruttan, V. W. (1971). Agricultural Development: An International Perspective. Baltimore, MD: Johns Hopkins University Press.
  27. Jackowicz, K., & Kowalewski, O. (2011). Divestments in Banking. Preliminary Evidence on the Role of External Factors. Contemporary Economics, 5 (2), 30-41.
  28. Jackowicz, K., Kowalewski, O., & Kozłowski, Ł. (2011). The Short and Long Term Performance Persistence in the Central European Banking Industry. Contemporary Economics, 5 (4), 18-31.
  29. Jarraya, B., & Bouri, A. (2013). MultiObjective Optimization for Asset Allocation in European NonLife Insurance Companies. Journal of Multi-Criteria Decision Analysis, 20 (3-4), 97-108.
  30. Kasman, A., & Yildirim, C. (2006). Cost and profit efficiencies in transition banking: the case of new EU members. Applied Economics, 38 (9), 1079-1090.
  31. Khan, M. S., & Senhadji, A. S., (2000). Financial development and economic growth: an overview (Working Paper No. 209). International Monetary Fund.
  32. Kontolaimou, A., & Tsekouras, K. (2010). Are the Cooperatives the weakest link in European Banking? A Non parametric Metafrontier Approach. Journal of Banking and Finance, 34 (8), 1946-1957.
  33. Leibenstein, H. (1966). Allocative Efficiency versus X-efficiency. American Economic Review, 56 (3), 392-415.
  34. Lozano-Vivas, A., Pastor, J. T., & Hasan, I. (2001). European bank performance beyond country borders: What really matters? European Finance Review, 5 (1-2), 141-165.
  35. Lozano-Vivas, V., Pastor, J. T., & Pastor, J. M. (2002). An efficiency comparison of European banking systems operating under different environmental conditions. Journal of Productivity Analysis, 18 (1), 59-77.
  36. Mahajan, A., Rangan, N., & Zardkoohi, A. (1996). Cost structures in multinational and domestic banking. Journal of Banking and Finance, 20 (2), 238-306.
  37. Maudos, J., Pastor, J. M., Perez, F., & Quesada, J. (2002). Cost and profit efficiency in European banks. Journal of International Financial Markets, Institution and Money, 12 (1), 33-58.
  38. McAllister, P. H., & McManus, D. (1993). Resolving the scale efficiency puzzle in banking. Journal of Banking and Finance, 17 (2-3), 389-405.
  39. Mester, L. J. (1996). A study of bank efficiency taking into account risk-preferences. Journal of Banking and Finance, 20 (6), 1025-1045.
  40. O'Donnell, C. J., Rao, D. S. P., & Battese, G. E. (2008). Metafrontier frameworks for the study of firm-level efficiencies and technology ratios. Empirical Economics, 34 (2), 231-255.
  41. Oh, D. H., Lee, J. D. (2010). A metafrontier approach for measuring Malmquist productivity index. Empirical Economics, 38 (1), 47-64.
  42. Orea, L., & Kumbhakar, S. C. (2004). Efficiency measurement using a latent class stochastic frontier model. Empirical Economics, 29 (1), 169-183.
  43. Qinyu, W., Johnson, J. K., Berger, A. N., & DeYoung, R. (1997). Problem loans and cost efficiency in com-mercial banks. Journal of Banking and Finance, 21 (6), 849-870.
  44. Pasiouras, F. (2008). International evidence on the impact of regulations and supervision on banks' technical efficiency: an application of two-stage data envelopment analysis. Review of Quantitative Finance and Accounting, 30 (2), 187-223.
  45. Pastor, J. M., Pérez, F., & Quesada, J. (1997). Efficiency Analysis in Banking Firms: An International Comparison. European Journal of Operational Research, 98 (2), 395-407.
  46. Pastor, J. M., & Serrano, L. (2005). Efficiency, endogenous and exogenous credit risk in the banking systems of the Euro area. Applied Financial Economics, 15 (9), 631-649.
  47. Peek, J., Rosengren, E. S., & Kasirye, F. (1999). The poor performance of foreign bank subsidiaries: Were the problems acquired or created? Journal of Banking and Finance, 23 (2), 579-604.
  48. Sealey, C. W., & Lindley, J. T. (1977). Inputs, outputs and a theory of production and cost at depository financial institutions. Journal of Finance, 32 (4), 1251-1266.
  49. Stefański, M. (2009). Transformation of the Polish Banking Sector. Contemporary Economics, 3 (3), 37-54.
  50. Vander Vennet, R. (1994). Concentration, efficiency and entry barriers as determinants for EC bank profitability. Journal of International Financial Markets, Institutions, and Money, 4 (3-4), 21-46.
  51. Yildirim, H.S., Philippatos, G. C. (2007). Competition and Contestability in Central and Eastern European Banking Industry. Managerial Finance,33 (3), 195-209.
  52. Zago, A., & Dongili, P. (2011). Credit quality and technical efficiency in banking. Empirical Economics, 40 (2), 537-558.
Cytowane przez
Pokaż
ISSN
2084-0845
Język
eng
URI / DOI
http://dx.doi.org/10.5709/ce.1897-9254.132
Udostępnij na Facebooku Udostępnij na Twitterze Udostępnij na Google+ Udostępnij na Pinterest Udostępnij na LinkedIn Wyślij znajomemu