Measuring cost efficiency in European banking: A comparison of frontier techniques

Journal of Productivity Analysis

Volumn 21, Issue 2, 2004, Pages 133-152

  Weill, Laurent ^a  

^a UNIVERSITÉ DE STRASBOURG   (France)

Author keywords

Banking; Data envelopment analysis; Distribution free approach; Efficiency; Stochastic frontier approach

Indexed keywords

EID: 4043164225     PISSN: 0895562X     EISSN: None     Source Type: Journal    
DOI: 10.1023/B:PROD.0000016869.09423.0c     Document Type: Article

References (36)

1. Altunbas, Y., L. Evans and P. Molyneux. (2001). "Bank Ownership and Efficiency." Journal of Money, Credit and Banking 33(4), 926-954.
2. Altunbas, Y., E. P. M. Gardener, P. Molyneux and B. Moore. (2001). "Efficiency in European Banking." European Economic Review 45(10), 1931-1955.
3. Bauer, P., A. Berger and D. Humphrey. (1993). "Efficiency and Productivity Growth in U.S. Banking." In H. Fried, C. A. K. Lovell, P. Schmidt (eds.), The Measurement of Productive Efficiency: Techniques and Applications. Oxford University Press, 386-413.
4. Bauer, P., A. Berger, G. Ferrier and D. Humphrey. (1998). "Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency Methods." Journal of Economics and Business 50(2), 85-114.
5. Berger, A. (1993). "Distribution-Free Estimates of Efficiency in the U.S. Banking Industry and Tests of the Standard Distributional Assumptions." Journal of Productivity Analysis 4, 261-292.
6. Berger, A., R. De Young, H. Genay and G. Udell. (2000). "Globalization of Financial Institutions: Evidence from Cross-Border Banking Performance." Brookings-Wharton Papers on Financial Services, 23-125.
7. Berger, A., R. De Young and G. Udell. (2001). "Efficiency Barriers to European Financial Consolidation." European Financial Management 7(1), 117-130.
8. Berger, A. and D. Humphrey. (1991). "The Dominance of Inefficiencies over Scale and Product Mix Economies in Banking." Journal of Monetary Economics 28, 117-148.
9. Berger, A. and D. Humphrey. (1992). "Measurement and Efficiency Issues in Commercial Banking." In Zvi Griliches (ed.), Output Measurement in the Service Sectors. Chicago: NBER, 245-300.
10. Berger, A. and D. Humphrey. (1997). "Efficiency of Financial Institutions: International Survey and Directions for Future Research." European Journal of Operational Research 98, 175-212.
11. Berger, A., J. Leusner and J. Mingo. (1997). "The Efficiency of Bank Branches." Journal of Monetary Economics 40(1), 141-162.
12. Berger, A. and L. Mester. (1997). "Inside the Black Box: What Explains Differences in the Efficiencies of Financial Institutions?" Journal of Banking and Finance 21, 895-947.
13. Carbo, S., E. P. M. Gardener and J. Williams. (2002). "Efficiency in Banking: Empirical Evidence from the Savings Banks Sector." The Manchester School 70(2), 204-228.
14. Cavallo, L. and S. Rossi. (2002). "Do Environmental Variables Affect the Performance and Technical Efficiency of the European Banking Systems? A Parametric Analysis using the Stochastic Frontier Approach." European Journal of Finance 8, 123-146.
15. Chauveau, T. and J. Couppey. (2000). "Les Banques Françaises de Réseaux n'ont pas de Problèmes Majeurs d'Inefficacité Productive: Une Application de la Technique d'Enveloppement des Données (DEA)." Revue Economique 51(6), 1355-1380.
16. Dietsch, M. (1996). "Efficience et Prise de Risque dans les Banques Françaises." Revue Economique 47(3), 745-754.
17. Dietsch, M. and A. Lozano-Vivas. (2000). "How the Environment Determines the Efficiency of Banks: A Comparison between French and Spanish Banking Industry." Journal of Banking and Finance 24(6), 985-1004.
18. Dietsch, M. and L. Weill. (1999). "Les Performances des Banques de Dépoêts Françaises: Une Evaluation par la Méthode DEA." In P. Badillo and J. Paradi (eds.), La Méthode DEA. Editions Hermès.
19. Dietsch, M. and L. Weill. (2000). "The Evolution of Cost and Profit Efficiency in European Banking." In I. Hasan and W. Hunter (eds.), Research in Banking and Finance. Vol. 1, JAI Press/Elsevier.
20. Drake, L. and T. Weyman-Jones. (1996). "Productive and Allocative Inefficiencies in U.K. Building Societies: A Comparison of Non-Parametric and Stochastic Frontier Techniques." The Manchester School LXIV(1), 22-37.
21. Färe, R., S. Grosskopf and J. Logan. (1985). "The Relative Performance of Publicly-Owned and Privately-Owned Electric Utilities." Journal of Public Economics 26, 89-106.
22. Ferrier, G. and C. A. K. Lovell. (1990). "Measuring Cost Efficiency in Banking: Econometric and Linear Programming Evidence." Journal of Econometrics 46, 229-245.
23. Greene, W. (1990). "A Gamma-Distributed Stochastic Frontier Model." Journal of Econometrics 46, 141-163.
24. Grifell-Tatjé, E. and C. A. K. Lovell. (1996). "Deregulation and Productivity Decline: The Case of Spanish Savings Banks." European Economic Review 40, 1281-1303.
25. Kmenta, J. and R. F. Gilbert. (1968). "Small Sample Properties of Alternative Estimators of Seemingly Unrelated Regressions." Journal of the American Statistical Association 63, 1180-1200.
26. Lang, G. (1996). "Efficiency, Profitability and Competition." IFO Studien 4/1996, 537-561.
27. Lozano-Vivas, A. (1997). "Profit Efficiency of Spanish Savings Banks." European Journal of Operational Research 98(2), 381-394.
28. Lozano-Vivas, A., J. T. Pastor and I. Hasan. (2001). "European Bank Performance beyond Country Borders: What Really Matters?" European Finance Review 5(1-2), 141-165.
29. Lozano-Vivas, A., J. T. Pastor and J. M. Pastor. (2002). "An Efficiency Comparison of European Banking Systems operating under Different Environmental Conditions." Journal of Productivity Analysis 18(1), 59-77.
30. Maudos, J., J. M. Pastor, F. Perez and J. Quesada. (2002). "Cost and Profit Efficiency in European Banks." Journal of International Financial Markets, Institutions and Money 12(1), 33-58.
31. Pastor, J. M., F. Perez and J. Quesada. (1997). "Efficiency Analysis in Banking Firms: An International Comparison." European Journal of Operational Research 98(2), 395-407.
32. Resti, A. (1997). "Evaluating the Cost-Efficiency of the Italian Banking System: What Can Be Learned from the Joint Application of Parametric and Non-Parametric Techniques." Journal of Banking and Finance 21, 221-250.
33. Sealey, C. and J. Lindley. (1977). "Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions." Journal of Finance 32, 1251-1266.
34. Sheldon, G. (1994). "Economies, Inefficiencies and Technical Progress in Swiss Banking." In D. Fair and R. Raymond (eds.), The Competitiveness of Financial Institutions and Centers in Europe. Kluwer, 115-133.
35. Vander Vennet, R. (2002). "Cost and Profit Efficiency of Financial Conglomerates and Universal Banks in Europe." Journal of Money, Credit and Banking 34(1), 254-282.
36. Wheelock, D. and P. Wilson. (1995). "Evaluating the Efficiency of Commercial Banks: Does Our View of What Banks Do Matter?" Review of Federal Reserve Bank of Saint-Louis 77(4), 39-52.