Incorporating Credit Quality in Bank Efficiency Measurements: A Directional Distance Function Approach

Measurement of dynamic efficiency, a directional distance function parametric approach

This research proposes a parametric estimation of the structural dynamic efficiency measures proposed by Silva and Oude Lansink (2009). Overall, technical and allocative efficiency measurements are derived based on a directional distance function and the duality between this function and the optimal value function. The applicability of the parametric proposal is illustrated by assessing dynamic...

Decomposing profit efficiency using a slack-based directional distance function

This paper develops a slack-based decomposition of profit efficiency based on a directional distance function.

Dynamic Efficiency Analysis using a Directional Distance Function

The effects of governance changes on bank efficiency in China: A stochastic distance function approach

China has accelerated and deepened bank reform since it joined the WTO in 2001. Employing a stochastic distance function, this paper investigates the technical efficiency of banks and examines the static, selection and dynamic effects of governance changes on bank efficiency in China for the period 1995-2005. Our results show that bank efficiency has been improved and state-owned banks still pe...

Cost, revenue and profit efficiency measurement in DEA: A directional distance function approach

Estimation of efficiency of firms in a non-competitive market characterized by heterogeneous inputs and outputs along with their varying prices is questionable when factor-based technology sets are used in data envelopment analysis (DEA). In this scenario, a value-based technology becomes an appropriate reference technology against which efficiency can be assessed. In this contribution, the val...