Most bank efficiency studies that use stochastic frontier analysis (SFA) employ each bank’s own implicit input price when estimating efficient frontiers. But the theoretical foundation of most studies is a cost minimisation and/ or profit maximisation problem assuming perfect input markets. At the very least, traditional input price proxies therefore contain substantial measurement error. In th...

The main objectives of this paper are to measure the technical efficiency levels of Iranian banks and to investigate the degree of factors influence on the efficiency in these banks. Stochastic frontier analysis (SFA) methods are applied to bank-level data over 22 years (from 1995 to 2011). We find that publicly-owned banks obtain average technical efficiencies of 0.73, which is lower than priv...

Copyright 2005 by Helena Johansson. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. Abstract Technical, allocative, and economic input efficiency scores were estimated for an unbalanced panel of Swedish dairy farms, using data envelopment analysis (DEA) and the stocha...

Stochastic frontier analysis (SFA) is often used to estimate technical efficiency of entities such as firms, countries or municipalities. A potential dependence between the two components of the error term can be taken into account by a copula function. While estimation of the model is straightforward using the Corrected Ordinary Least Squares (COLS) and Maximum Likelihood (ML) methods, an open...

This study explores the impact of main idiosyncratic endogenous (Capital ratio, Diversification, Liquidity, Return on equity (ROE), Banks assets’ size) and macroeconomic exogenous (Inflation rate, GDP growth rate HHI concentration index) determinants banking firm that influence banks’ cost efficiency. Using SFA (Stochastic Frontier Approach) we estimate efficiency MENA sectors through a two-sta...

Employing the one-step stochastic frontier analysis (SFA) approach, this paper examines bank efficiency in China, paying special attention to the ownership, selection effect and dynamic effects of governance changes on bank performance. Bank efficiency has improved over the data period 1995-2008. The estimated average cost and profit efficiencies are 74% and 63% respectively. Joint Stock Commer...

Using Stochastic Frontier Analysis (SFA) in a sample of commercial banks from 107 countries for the period 1996-2003, we obtain a mean cost efficiency score of 0,84, which supports the evidence found in other works, suggesting an improvement of efficiency scores over the ones obtained in the previous decade. Adding some data on the financial information framework (Bank Regulation and supervisio...

This paper discusses beta and sigma convergence of commercial, savings, and cooperative banks in the Eurozone from 1999 to 2012. For this purpose, concepts of the growth and efficiency convergence literature are consulted and GMM, fixed effects models, and OLS are applied. Convergence is analyzed by calculating two efficiency metrics – data envelopment analysis (DEA) and stochastic frontier ana...

There is a growing interest in the cross-country comparisons of the performance of national health care systems. The present work provides a comparison of the technical efficiency of the hospital sector using unbalanced panel data from OECD countries over the period 2000-2009. The estimation of the technical efficiency of the hospital sector is performed using nonparametric data envelopment ana...

In recent years, solar and wind energy have been increasingly abandoned due to the blind expansion of new industry. Due competitive relationships between different types energy, reasonable industrial development planning needs be implemented not only save cost government subsidies but also clarify investment direction social capital. Based on panel data OECD countries 2006 2018, stochastic fron...