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Sensitivity analysis of efficiency and Malmquist productivity indices: An application to Spanish savings banks

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  • Tortosa-Ausina, Emili
  • Grifell-Tatje, Emili
  • Armero, Carmen
  • Conesa, David

Abstract

Hypothesis testing and statistical precision in the context of nonparametric efficiency and productivity measurement have been investigated since the early 1990s. Recent contributions focus on this matter through the use of resampling methods?i.e., bootstrapping techniques. However, empirical evidence is still practically non-existent. This gap is more noticeable in the case of banking efficiency studies, where the literature is immense. In this paper, we explore productivity growth and productive efficiency for Spanish savings banks over the (initial) post-deregulation period 1992?1998 using Data Envelopment Analysis (DEA) and bootstrapping techniques. Results show that productivity growth has occurred, mainly due to improvement in production possibilities, and that mean efficiency has remained fairly constant over time. The bootstrap analysis yields further evidence, as for many firms productivity growth, or decline, is not statistically significant. With regard to efficiency measurement, the bootstrap reveals that the disparities in the original efficiency scores of some firms are lessened to a great extent. Desde principios de los años noventa ha habido avances notables en el contraste de hipótesis dentro del contexto de la medición de la eficiencia y la productividad mediante técnicas paramétricas. Las contribuciones más recientes han enfocado el tema a través de métodos de remuestreo -conocidos en la literatura como técnicas bootstrap-. Sin embargo, prácticamente no ha habido aplicaciones, algo también patente en el estudio de la eficiencia de la empresa bancaria. En este artículo, analizamos la eficiencia productiva y el crecimiento de la productividad de las cajas de ahorro españolas durante el periodo 1992-1998 a través de técnicas no paramétricas (DEA) y de técnicas bootstrap, con el fin de poder realizar inferencia estadística. Los resultados indican que la productividad ha aumentado, principalmente debido a una mejora en las posibilidad

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 184 (2008)
Issue (Month): 3 (February)
Pages: 1062-1084

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Handle: RePEc:eee:ejores:v:184:y:2008:i:3:p:1062-1084

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Cited by:
  1. Arjomandi, Amir & Valadkhani, Abbas & Harvie, Charles, 2010. "An Analysis of Productivity Changes in the Iranian banking Industry: a Bootstrapped Malmquist Approach," Economics Working Papers, School of Economics, University of Wollongong, NSW, Australia wp10-08, School of Economics, University of Wollongong, NSW, Australia.
  2. Murinde, Victor & Zhao, Tianshu, 2009. "Bank competition, risk taking and productive efficiency: Evidence from Nigeria's banking reform experiments," Stirling Economics Discussion Papers, University of Stirling, Division of Economics 2009-23, University of Stirling, Division of Economics.
  3. Grifell-Tatjé, E., 2011. "Profit, productivity and distribution: Differences across organizational forms - The case of Spanish banks," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 45(2), pages 72-83, June.
  4. Matthews, Kent & Zhang, Nina (Xu), 2010. "Bank productivity in China 1997-2007: Measurement and convergence," China Economic Review, Elsevier, vol. 21(4), pages 617-628, December.
  5. Aiello, Francesco & Bonanno, Graziella, 2014. "On the Sources of Heterogeneity in Banking Efficiency Literature," MPRA Paper 58591, University Library of Munich, Germany.
  6. Simon, Jose & Simon, Clara & Arias, Alicia, 2011. "Changes in productivity of Spanish university libraries," Omega, Elsevier, vol. 39(5), pages 578-588, October.
  7. Balcombe, Kelvin George & Davidova, Sophia & Latruffe, Laure, 2006. "The Use of Bootstrapped Malmquist Indices to Reassess Productivity Change Findings: An Application to a Sample of Polish Farms," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25793, International Association of Agricultural Economists.
  8. Carlos Sánchez-González & José Luis Sarto & Luis Vicente, 2013. "The efficiency of Spanish mutual funds companies: A slacks-based measure approach," Documentos de Trabajo dt2013-01, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  9. Arjomandi, Amir & Valadkhani, Abbas & Harvie, Charles, 2011. "Analysing Productivity Changes Using the Bootstrapped Malmquist Approach: The Case of the Iranian Banking Industry," MPRA Paper 50397, University Library of Munich, Germany.
  10. Thanh, Ngo & Linh Thi Phuong, Nguyen, 2012. "Total Factor Productivity of Thai Banks in 2007-2010: An Application of DEA and Malmquist Index," MPRA Paper 56391, University Library of Munich, Germany.
  11. Epure, Mircea & Kerstens, Kristiaan & Prior, Diego, 2011. "Bank productivity and performance groups: A decomposition approach based upon the Luenberger productivity indicator," European Journal of Operational Research, Elsevier, Elsevier, vol. 211(3), pages 630-641, June.
  12. Briec, Walter & Kerstens, Kristiaan, 2009. "The Luenberger productivity indicator: An economic specification leading to infeasibilities," Economic Modelling, Elsevier, vol. 26(3), pages 597-600, May.
  13. González Bravo, M. Isabel & Mariaca Daza, René, 2010. "Fracaso de bancos comerciales. Un estudio de eficiencia y productividad," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 13, pages 137-162.
  14. Casu, Barbara & Girardone, Claudia & Molyneux, Philip, 2004. "Productivity change in European banking: A comparison of parametric and non-parametric approaches," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2521-2540, October.
  15. Amaya Altuzarra & Jesús Ferreiro & Catalina Gálvez & Carmen Gómez & Ana González & Patricia Peinado & Carlos Rodríguez & Felipe Serrano, 2013. "Studies in Financial Systems No 6 Report on the Spanish Financial System," FESSUD studies, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project fstudy06, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
  16. Zoma, Isaїe Armand, 2010. "The analysis of the total factors productivity growth in waemu banks: the x efficiency approach," MPRA Paper 24470, University Library of Munich, Germany.
  17. Kerstens, Kristiaan & Van de Woestyne, Ignace, 2014. "Comparing Malmquist and Hicks–Moorsteen productivity indices: Exploring the impact of unbalanced vs. balanced panel data," European Journal of Operational Research, Elsevier, Elsevier, vol. 233(3), pages 749-758.
  18. N. Avkiran, 2010. "Sensitivity analysis of network DEA illustrated in branch banking," CEPA Working Papers Series WP122010, School of Economics, University of Queensland, Australia.
  19. Epure, Mircea & Kerstens, Kristiaan & Prior, Diego, 2011. "Technology-based total factor productivity and benchmarking: New proposals and an application," Omega, Elsevier, vol. 39(6), pages 608-619, December.
  20. Balcombe, Kelvin George & Davidova, Sophia & Latruffe, Laure, 2005. "Productivity Change in Polish Agriculture: An Application of a Bootstrap Procedure to Malmquist Indices," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24572, European Association of Agricultural Economists.
  21. Olson, Kent D. & Vu, Linh, 2009. "Productivity Growth, Technical Efficiency and Technical Change on Minnesota Farms," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin, Agricultural and Applied Economics Association 49204, Agricultural and Applied Economics Association.
  22. Rodrigo Taborda & Julieth Santamaría, 2011. "Productivity growth in electric energy retail in Colombia. A bootstrapped malmquist indices approach," DOCUMENTOS DE TRABAJO 009152, UNIVERSIDAD DEL ROSARIO.

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