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

Robust Nonparametric Estimation of Efficiency and Technical Change in U.S. Commercial Banking

Contents:

Author Info

  • Paul W. Wilson
  • David C. Wheelock

Abstract

This paper examines the performance of the U.S.~commercial banking industry over 1984--2002. Rather than measuring performance relative to the unknown (and difficult-to-estimate) boundary of the production set, performance for a given bank is measured relative to {\it expected} maximum output among $m$ banks using no more of each input than the given bank. This approach permits fully non-parametric estimation with $\sqrt{n}$-consistency, avoiding the usual curse of dimensionality that plagues traditional non-parametric efficiency estimators. The resulting estimates are robust with respect to outliers and noise in the data

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 North American Summer Meetings with number 433.

as in new window
Length:
Date of creation: 11 Aug 2004
Date of revision:
Handle: RePEc:ecm:nasm04:433

Contact details of provider:
Phone: 1 212 998 3820
Fax: 1 212 995 4487
Email:
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC

Related research

Keywords: order-m; technical efficiency; productivity; frontier;

Other versions of this item:

Find related papers by JEL classification:

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. GIJBELS, Irène & MAMMEN, Enno & PARK, Byeong U. & SIMAR, Léopold, 1997. "On estimation of monotone and concave frontier functions," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1997031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. KNEIP, Alois & PARK, Byeong U. & SIMAR, Léopold, 1996. "A Note on the Convergence of Nonparametric DEA Efficiency Measures," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 1996039, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Léopold Simar, 2003. "Detecting Outliers in Frontier Models: A Simple Approach," Journal of Productivity Analysis, Springer, Springer, vol. 20(3), pages 391-424, November.
  4. Allen N. Berger & Loretta J. Mester, 2002. "Explaining the dramatic changes in performance of U.S. banks: technological change, deregulation, and dynamic changes in competition," Working Papers 01-6, Federal Reserve Bank of Philadelphia.
  5. Simar, Leopold & Wilson, Paul W., 1999. "Estimating and bootstrapping Malmquist indices," European Journal of Operational Research, Elsevier, Elsevier, vol. 115(3), pages 459-471, June.
  6. Korostelev, A.P. & Simar , L. & Tsybakov, A.B., . "On estimation of monotone and convex boundaries," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -1139, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, Elsevier, vol. 98(2), pages 175-212, April.
  8. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, Elsevier, vol. 106(1), pages 1-25, January.
  9. Simar, L. & Wilson, P.W., 1999. "Statistical Inference in Nonparametric Frontier Models: the State of the Art," Papers, Catholique de Louvain - Institut de statistique 9904, Catholique de Louvain - Institut de statistique.
  10. Clark, Jeffrey A & Siems, Thomas F, 2002. "X-Efficiency in Banking: Looking beyond the Balance Sheet," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 34(4), pages 987-1013, November.
  11. Tsybakov, A.B. & Korostelev, A.P. & Simar, L., 1992. "Efficient Estimation of Monotone Boundaries," Papers, Catholique de Louvain - Institut de statistique 9209, Catholique de Louvain - Institut de statistique.
  12. repec:wop:humbsf:1998-9 is not listed on IDEAS
  13. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521453455.
  14. Simar, L. & Wilson, P.W., 1998. "Productivity Growth in Industrialized Countries," Papers, Catholique de Louvain - Institut de statistique 9810, Catholique de Louvain - Institut de statistique.
  15. Wheelock, David C. & Wilson, Paul W., 2001. "New evidence on returns to scale and product mix among U.S. commercial banks," Journal of Monetary Economics, Elsevier, Elsevier, vol. 47(3), pages 653-674, June.
  16. McAllister, Patrick H. & McManus, Douglas, 1993. "Resolving the scale efficiency puzzle in banking," Journal of Banking & Finance, Elsevier, Elsevier, vol. 17(2-3), pages 389-405, April.
  17. Gallant, A. Ronald, 1982. "Unbiased determination of production technologies," Journal of Econometrics, Elsevier, Elsevier, vol. 20(2), pages 285-323, November.
  18. Gallant, A. Ronald, 1981. "On the bias in flexible functional forms and an essentially unbiased form : The fourier flexible form," Journal of Econometrics, Elsevier, Elsevier, vol. 15(2), pages 211-245, February.
  19. Park, B.U. & Simar, L. & Weiner, Ch., 2000. "The Fdh Estimator For Productivity Efficiency Scores," Econometric Theory, Cambridge University Press, Cambridge University Press, vol. 16(06), pages 855-877, December.
  20. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, American Economic Association, vol. 84(1), pages 66-83, March.
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. Santiago Herrera & Gaobo Pang, 2006. "Efficiency Of Infrastructure: The Case Of Container Ports," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of G 124, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  2. Uwe Cantner & Jens J. Krüger & René Söllner, 2012. "Product quality, product price, and share dynamics in the German compact car market," Industrial and Corporate Change, Oxford University Press, vol. 21(5), pages 1085-1115, October.
  3. Wheelock, David C. & Wilson, Paul W., 2008. "Non-parametric, unconditional quantile estimation for efficiency analysis with an application to Federal Reserve check processing operations," Journal of Econometrics, Elsevier, Elsevier, vol. 145(1-2), pages 209-225, July.
  4. Anatoly Pilyavsky & Matthias Staat, 2008. "Efficiency and productivity change in Ukrainian health care," Journal of Productivity Analysis, Springer, Springer, vol. 29(2), pages 143-154, April.
  5. Binder, Martin & Broekel, Tom, 2008. "Conversion Efficiency as a Complementing Measure of Welfare in Capability Space," MPRA Paper 7583, University Library of Munich, Germany.
  6. Santiago Herrera & Gaobo Pang, 2006. "How Efficient is Public Spending in Education?," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, BANCO DE LA REPÚBLICA - ESPE.
  7. World Bank, 2009. "Belarus Agricultural Productivity and Competitiveness : Impact of State Support and Market Intervention," World Bank Other Operational Studies 18897, The World Bank.
  8. Astrid Cullmann & Christian von Hirschhausen, 2007. "From Transition to Competition: Dynamic Efficiency Analysis of Polish Electricity Distribution Companies," Discussion Papers of DIW Berlin 716, DIW Berlin, German Institute for Economic Research.
  9. Cristina Suárez & Justo Jorge, 2010. "Efficiency convergence processes and effects of regulation in the nonspecialized retail sector in Spain," The Annals of Regional Science, Springer, Springer, vol. 44(3), pages 573-597, June.
  10. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.

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:ecm:nasm04:433. 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: (Christopher F. Baum).

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.