Efficiency, technical change, and returns to scale in large US banks: Panel data evidence from an output distance function satisfying theoretical regularity

Journal of Banking and Finance

Volumn 34, Issue 1, 2010, Pages 127-138

  Feng, Guohua ^a   Serletis, Apostolos ^b  

^a MONASH UNIVERSITY   (Australia)

^b UNIVERSITY OF CALGARY   (Canada)

Author keywords

Productivity decomposition; Translog output distance function

Indexed keywords

EID: 70350216162     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2009.07.009     Document Type: Article

References (26)

1. Aigner D.J., Lovell C.A.K., and Schmidt P. Formulation and estimation of stochastic frontier production function models. Journal of Econometrics 6 (1977) 21-37
2. Asaftei G. The contribution of product mix versus efficiency and technical change in US banking. Journal of Banking and Finance 32 (2008) 2336-2345
3. Barnett W.A., and Yue P. Semi-nonparametric estimation of the asymptotically ideal model: The AIM demand system. In: Rhodes G., and Fomby T.B. (Eds). Advances in Econometrics vol. VII (1988), JAI Press, Greenwich, CT
4. Barnett W.A., Geweke J., and Wolfe M. Semi-nonparametric Bayesian estimation of the asymptotically ideal production model. Journal of Econometrics 49 (1991) 5-50
5. Berger A.N., and Mester L.J. Explaining the dramatic changes in the performance of US banks: Technological change deregulation and dynamic changes in competition. Journal of Financial Intermediation 12 (2003) 57-95
6. Berger A.N., Demsetz R.S., and Strahan P.E. The consolidation of the financial services industry: Causes consequences and the implications for the future. Journal of Banking and Finance 23 (1999) 135-194
7. Bikker J.A., and Haaf K. Competition, concentration and their relationship: An empirical analysis of the banking industry. Journal of Banking and Finance 26 (2002) 2191-2214
8. Bos J.W.B., and Kolari J.W. Large bank efficiency in Europe and the United States: Are there economic motivations for geographic expansion in financial services?. Journal of Business 78 (2005) 1555-1592
9. Cummins J.D., and Xie X. Mergers and acquisitions in the US property-liability insurance industry: Productivity and efficiency effects. Journal of Banking and Finance 32 (2008) 30-55
10. Denny M., Fuss M., and Waverman L. The measurement and interpretation of total factor productivity in regulated industries with an application to Canadian telecommunications. In: Cowing T.G., and Stevenson R.E. (Eds). Productivity Measurement in Regulated Industries (1981), Academic Press, New York
11. Färe R., and Grosskopf S. Cost and Revenue Constrained Production (1994), Springer
12. Feng G., and Serletis A. Efficiency and productivity of the US banking industry, 1998-2005: Evidence from the Fourier cost function satisfying global regularity conditions. Journal of Applied Econometrics 24 (2009) 105-138
13. Fernandez C., Osiewalski J., and Steel M.F.J. On the use of panel data in stochastic frontier models with improper priors. Journal of Econometrics 79 (1997) 169-193
14. Gallant A.R. Unbiased determination of production technology. Journal of Econometrics 20 (1982) 285-323
15. Griliches Z. R & D, Education, and Productivity: A Retrospective (2000), Harvard University Press, Cambridge
16. Kauko K. Managers and efficiency in banking. Journal of Banking and Finance 33 (2009) 546-556
17. Koutsomanoli-Filippaki A., Margaritis D., and Staikouras C. Efficiency and productivity growth in the banking industry of central and eastern Europe. Journal of Banking and Finance 33 (2009) 557-567
18. Lovell C.A.K. The decomposition of Malmquist productivity indexes. Journal of Productivity Analysis 20 (2003) 437-458
19. Mundlak Y. Production function estimation: Reviving the primal. Econometrica 64 (1996) 431-438
20. O'Donnell C.J., and Coelli T.J. A Bayesian approach to imposing curvature on distance functions. Journal of Econometrics 126 (2005) 493-523
21. Orea L. Parametric decomposition of a generalized Malmquist productivity index. Journal of Productivity Analysis 18 (2002) 5-22
22. Sealey C., and Lindley J. Inputs, outputs, and a theory of production and cost at depository financial institutions. Journal of Finance 32 (1977) 1251-1266
23. Shephard R.W. Theory of Cost and Production Functions (1970), Princeton University Press, Princeton
24. Stiroh K.J. How did bank holding companies prosper in the 1990s?. Journal of Banking and Finance 24 (2000) 1703-1745
25. Tierney L. Markov chains for exploring posterior distributions (with discussion). Annals of Statistics 22 (1994) 1701-1762
26. Tsionas E.G. Inference in dynamic stochastic frontier models. Journal of Applied Econometrics 21 (2006) 669-676