Identification of Segments of European Banks with a Latent Class Frontier Model
AbstractThis paper analyses technical efficiency of European banks over the period 1996-2003 with unbalanced panel data techniques. A latent class frontier model is used which allows the identification of different segments in the production frontier. We find that there are three statistically significant segments in the sample. Therefore, we conclude that no common banking policy can be effective for all the banks included in the sample, and that banking policies by segments are required instead.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2110.
Date of creation: 2007
Date of revision:
European banking; latent class frontier model; technical efficiency;
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