Estimating indirect allocative inefficiency and productivity change

Journal of the Operational Research Society

Volumn 60, Issue 11, 2009, Pages 1594-1608

  Fukuyama, H ^a,c   Weber, W L ^b  

^a FUKUOKA UNIVERSITY   (Japan)

^b SOUTHEAST MISSOURI STATE UNIVERSITY   (United States)

^c NONE   (Japan)

Author keywords

DEA (data envelopment analysis); Directional distance functions; Indirect allocative inefficiency; Japanese banking; Productivity change

Indexed keywords

DATA ENVELOPMENT ANALYSIS;

DEA (DATA ENVELOPMENT ANALYSIS); DIRECTIONAL DISTANCE FUNCTION; INDIRECT ALLOCATIVE INEFFICIENCY; JAPANESE BANKING; PRODUCTIVITY CHANGES;

PRODUCTIVITY;

EID: 70349495255     PISSN: 01605682     EISSN: 14769360     Source Type: Journal    
DOI: 10.1057/jors.2009.62     Document Type: Conference Paper

References (47)

1. Altunbas Y, Liu M, Molyneux P and Seth R (2000). Efficiency and risk in Japanese banking. J Bank Financ 24: 1605-1638.
2. Banker RD (1996). Hypothesis tests using data envelopment analysis. J Prod Anal 7: 139-159.
3. Banker RD, Charnes A and Cooper WW (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Manage Sci 30: 1078-1092.
4. Berger AN and Humphrey DB (1991). The dominance of inefficiencies over scale and product mix economies in banking. J Monetary Econ 91: 117-148.
5. Berger AN and Humphrey DB (1992). Measurement of efficiency issues in commercial banking. In: Griliches Z (ed). Output Measurement in the Service Sector. The University of Chicago Press: Chicago, pp 245-279.
6. Berger AN and Humphrey DB (1997). Efficiency of financial institutions: international survey and directions for future research. Eur J Opl Res 98: 175-212.
7. Berger AN, Hancock D and Humphrey DB (1993). Bank efficiency derived from the profit function. J Bank Financ 17: 317-347.
8. Camanho AS and Dyson RG (2005). Cost efficiency measurement with price uncertainty: a DEA application to bank branch assessments. Eur J Opl Res 161: 432-446.
9. Camanho AS and Dyson RG (2008). A generalization of the Farrell cost efficiency measure applicable to non-fully competitive settings. Omega: Int J Manage Sci 36: 147-162.
10. Chambers RG (2002). Exact nonradial input, output, and productivity measurement. Econ Theor 20: 751-765.
11. Chambers RG, Chung Y and Färe R (1996). Benefit and distance functions. J Econ Theor 70: 407-419.
12. Charnes A, Cooper WW and Rhodes E (1978). Measuring the efficiency of decision-making units. Eur J Opl Res 2: 429-444.
13. Cooper WW, Seiford LM and Zhu J (eds), (1998). Handbook on Data Envelopment Analysis. Kluwer Academic Publishers: Boston, Massachusetts.
14. Cooper WW, Seiford LM and Tone K (2000). Data Envelopment Analysis. Boston/Kluwer Academic Publishers: Massachusetts.
15. Devaney M and Weber WL (2002). Small-business lending and profit efficiency in commercial banking. J Financ Serv Res 22: 225-246.
16. Dvorak P (2001). A puzzle for Japan: rock-bottom rates, but few borrowers. The Wall Street Journal, October 25.
17. Drake L and Hall MJB (2003). Efficiency in Japanese banking: an empirical analysis. J Bank Financ 27: 891-917.
18. Dyson RG, Allen R, Camanho AS, Podinovski VV, Sarrico CS and Shale EA (2001). Pitfalls and protocols in DEA. Eur J Opl Res 132: 245-259.
19. Emrouznejad A (1995). Data Envelopment Analysis Home Page. http://www.DEAzone.com.
20. Färe R and Grosskopf S (1994). Cost and Revenue Constrained Production. Springer-Verlag: New York.
21. Färe R and Grosskopf S (2004). New Directions: Efficiency and Productivity. Kluwer Academic Press: Boston/Dordrecht/London.
22. Färe R and Primont D (2006). Directional duality theory. Econ Theor 29: 239-247.
23. Färe R, Grosskopf S and Lovell CAK (1994). Production Frontiers. Cambridge University Press: Cambridge.
24. Färe R, Grosskopf S and Weber WL (2004). The effect of risk-based capital requirements on profit efficiency in banking. Appl Econ 36: 1731-1743.
25. Färe R, Grosskopf S, Noh D-W and Weber WL (2005). Characteristics of a polluting technology: theory and practice. J Econometrics 126: 469-492.
26. Farrell MJ (1957). The measurement of productive efficiency. J R Stat Soc Ser A G 120(3): 253-281.
27. Fukuyama H (1993). Technical and scale efficiency of Japanese commercial banks: a non-parametric approach. Appl Econ 25: 1101-1112.
28. Fukuyama H and Weber WL (2002). Estimating output allocative efficiency and productivity change: Application to Japanese banks. Eur J Opl Res 137: 177-190.
29. Fukuyama H and Weber WL (2004). Economic inefficiency measurement of input spending when decision-making units face different input prices. J Opl Res Soc 55: 1102-1110.
30. Fukuyama H andWeberWL (2005). Estimating output gains by means of Luenberger efficiency measures. Eur J Opl Res 164: 535-547.
31. Fukuyama H and Weber WL (2008). Indicators and indexes of directional output loss and input allocative inefficiency. Manage Decis Econ 29: 565-574.
32. Glass JC, McKillop DG and Morikawa Y (1998). Intermediation and value-added models for estimating cost economies in large Japanese banks 1977-93. Appl Financ Econ 8: 653-661.
33. Grosskopf S, Hayes K, Taylor L and Weber WL (1999). Anticipating the consequences of school reform: a new use of DEA. Manage Sci 45: 608-619.
34. Hancock D (1985). The financial firm: production with monetary and nonmonetary goods. J Polit Econ 93: 859-880.
35. Hughes JP and Mester LJ (1993). A quality and risk-adjusted cost function for banks: evidence on the 'Too-big-to-fail' doctrine. J Prod Anal 4: 293-315.
36. Kasuya M (1986). Economies of scope: theory and application to banking. BOJ Monet Econo Stud 4: 59-104.
37. Kawamoto Y (2004). Fixing Japan's banking system. The McKinsey Quarterly 3: 1-3.
38. Luenberger DG (1992). Benefit functions and duality. J Math Econ 21: 461-481.
39. Park KH and Weber WL (2006). A note on efficiency and productivity growth in the Korean banking industry, 1992-2002. J Bank Financ 30: 2371-2386.
40. Saunders A and Walter I (1994). Universal Banking in the United States: What Could We Gain? What Could We Lose? Oxford University Press: London.
41. Sealey C and Lindley JT (1977). Inputs, outputs and a theory of production and cost at depository financial institutions. J Financ 33: 1251-1266.
42. Shaffer S (1994). A revenue-restricted cost study of 100 large banks. Appl Financ Econ 4: 193-205.
43. Shephard RW (1970). Theory of Cost and Production Functions. Princeton University Press: Princeton.
44. Shephard RW (1974). Indirect production functions. Mathematical Systems in Economics, No.10. Verlag Anton Hain: Meisenheim Am Glan.
45. Simar L and Wilson PW (1998). Sensitivity analysis of efficiency scores: how to bootstrap in nonparametric frontier models. Manage Sci 44: 49-61.
46. Simar L and Wilson P (2002). Non-parametric tests of returns to scale. Eur J Opl Res 139: 115-132.
47. Tachibanaki T, Mitsui K and Kitagawa H (1991). Economies of scope and shareholding of banks in Japan. J Jpn Int Econ 5: 261-281.