Advanced Search
MyIDEAS: Login to save this paper or follow this series

Output, Productivity and Externalities - the Case of Banking

Contents:

Author Info

  • R J Colwell
  • E P Davis

Abstract

Concepts in banking output, and the empirical literature on bank productivity - which employs output concepts - are critically surveyed. Related issues concerning externalities from banking activity, which entail a deviation of private from social measures of banking output, are outlined. For output, the national accounts, production and intermediation approaches are compared. As regards productivity, both partial and total factor productivity measures, and the DEA and parametric approaches to the latter are assessed. The externalities from banking are shown to include contributions to economic development, external economies of scale between institutions, and contagious effects of failures. Among the most striking results in the prevalence of technical inefficiency in banking. In addition, externality issues are rarely considered in combination nor assessed empirically. But more generally, it is also suggested that measurement techniques have often outpaced the theory of what is to be measured, notably in fields such as joint production, risk and competition. Alternative approaches to address these issues are suggested.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bankofengland.co.uk/archive/Documents/historicpubs/workingpapers/1992/wp03.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Bank of England in its series Bank of England working papers with number 3.

as in new window
Length:
Date of creation: Aug 1992
Date of revision:
Handle: RePEc:boe:boeewp:3

Contact details of provider:
Postal: Publications Group Bank of England Threadneedle Street London EC2R 8AH
Phone: +44 (0)171 601 4030
Fax: +44 (0)171 601 5196
Email:
Web page: http://www.bankofengland.co.uk/
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, Elsevier, vol. 17(1), pages 35-44, July.
  2. Parkan, Celik, 1987. "Measuring the efficiency of service operations: An application to bank branches," Engineering Costs and Production Economics, Elsevier, Elsevier, vol. 12(1-4), pages 237-242, July.
  3. Rangan, Nanda & Grabowski, Richard & Aly, Hassan Y. & Pasurka, Carl, 1988. "The technical efficiency of US banks," Economics Letters, Elsevier, Elsevier, vol. 28(2), pages 169-175.
  4. Ben S. Bernanke, 1983. "Non-Monetary Effects of the Financial Crisis in the Propagation of the Great Depression," NBER Working Papers 1054, National Bureau of Economic Research, Inc.
  5. Romer, Paul M., 1990. "Human capital and growth: Theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 32(1), pages 251-286, January.
  6. George J. Benston, 1965. "Branch Banking And Economies Of Scale," Journal of Finance, American Finance Association, American Finance Association, vol. 20(2), pages 312-331, 05.
  7. George J. Benston & Gerald Hanweck & David B. Humphrey, 1981. "Scale economies in banking: a restructuring and reassessment," Research Papers in Banking and Financial Economics, Board of Governors of the Federal Reserve System (U.S.) 53, Board of Governors of the Federal Reserve System (U.S.).
  8. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, Elsevier, vol. 2(6), pages 429-444, November.
  9. William J Baumol, 1991. "Technological Imperatives, Productivity and Insurance Costs*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan, vol. 16(2), pages 154-165, April.
  10. Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, Elsevier, vol. 13(1), pages 5-25, May.
  11. Partha Dasgupta & Joseph Stiglitz, 1980. "Uncertainty, Industrial Structure, and the Speed of R&D," Bell Journal of Economics, The RAND Corporation, The RAND Corporation, vol. 11(1), pages 1-28, Spring.
  12. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, Federal Reserve Bank of Minneapolis, issue Win, pages 14-23.
  13. Choi, Sang-Rim & Tschoegl, Adrian E, 1984. "Bank Employment in the World's Largest Banks: An Update: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 16(3), pages 359-62, August.
  14. Fama, Eugene F., 1985. "What's different about banks?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 15(1), pages 29-39, January.
  15. repec:fth:louvco:9050 is not listed on IDEAS
  16. Sealey, Calvin W, Jr & Lindley, James T, 1977. "Inputs, Outputs, and a Theory of Production and Cost at Depository Financial Institutions," Journal of Finance, American Finance Association, American Finance Association, vol. 32(4), pages 1251-66, September.
  17. Stuart I. Greenbaum, 1967. "Competition and Efficiency in the Banking System--Empirical Research and Its Policy Implications," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 461.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Robert Webb, 2003. "Levels of efficiency in UK retail banks: a DEA window analysis," International Journal of the Economics of Business, Taylor & Francis Journals, Taylor & Francis Journals, vol. 10(3), pages 305-322.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:boe:boeewp:3. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publications Team).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.