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-Convergence In Efficiency Of The Spanish Banking Firms As Distribution Dynamics

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  • Emili Tortosa Ausina

    () (Universitat Jaume I)

Abstract

During the last fifteen years the competitive conditions under which Spanish banking firms operate have become much tighter. Deregulation has affected both banks and savings banks, allowing them to expand geographically and to choose a less regulation-conditioned output mix.This paper analyzes how, in these circumstances, banking efficiency has been affected considering two specifications of output and analyzing the dynamics of the entire distribution, not only mean and standard deviation. Results differ depending on the output definition, but they show that, in general, efficiency scores exhibit dynamic patterns that only two moments of the distribution hardly capture. In particular, regardless of the output definition considered, efficiency scores were more dispersed in 1985 and more concentrated in 1995. In addition, the multi-modality of the distributions has almost disappeared at the end of the period. Durante los últimos quince años las condiciones competitivas bajo las que operan las empresas bancarias españolas se han intensificado considerablemente. La desregulación ha afectado tanto a bancos como a cajas de ahorro, permitiendo la expansión geográfica de estas últimas así como la elección de una determinada especialización menos condicionada por la regulación. Este trabajo analiza cómo, en estas circunstancias, la eficiencia de las empresas bancarias se ha visto afectada, a través de dos aproximaciones del output bancario y analizando la dinámica de la totalidad de la distribución, no únicamente media y desviación típica. Los resultados difieren de acuerdo con las distintas aproximaciones al output pero muestran que, en general, los índices de eficiencia muestran patrones dinámicos que sólo dos momentos de la distribución no captan. En particular, e independientemente de la definición del output, los índicesde eficiencia estaban más dispersos en 1985 y más concentrados en 1995. Asimismo, la multimodalidad de las distribuciones prácticamente ha desaparecido al final del periodo analizado.

Suggested Citation

  • Emili Tortosa Ausina, 1999. "-Convergence In Efficiency Of The Spanish Banking Firms As Distribution Dynamics," Working Papers. Serie EC 1999-14, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:1999-14
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    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-1999-14.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Emili Tortosa-Ausina, 2003. "Bank cost efficiency as distribution dynamics: controlling for specialization is important," Investigaciones Economicas, Fundación SEPI, vol. 27(1), pages 71-96, January.
    2. Francisco Perez & Emili Tortosa-Ausina, 2002. "Product mix clubs, divergence and inequality of Spanish banking firms," Applied Financial Economics, Taylor & Francis Journals, vol. 12(6), pages 431-445.

    More about this item

    Keywords

    Bancos; dinámica de la distribución; eficiencia en costes; estimación no paramética de la densidad; matriz de probabilidad de transición. Banking; distribution dynamics; cost efficiency; nonparametric density estimation; transition probability matrix.;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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