Non-parametric efficiency analysis in banking: a study of German universal banks

  • Based on 1989-92 data of 1407 German universal banks we perform a non-parametric analysis of efficiency in the German banking industry. Applying the „data envelopment“ (DEA) approach, we solve four linear programs for each bank to calculate measures of overall, technical, allocative, and scale efficiency. In addition, we use the measure of scale elasticity recently suggested for DEA by Førsund and Hjalmarsson. Our results on overall efficiency and its first two components are in line with previous econometric evidence, emphasizing in particular the importance of technical inefficiency. However, DEA leads to a much lower efficient size than parametric frontier analysis.

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Metadaten
Author:Peter WelzelGND, Günter LangGND
Frontdoor URLhttps://opus.bibliothek.uni-augsburg.de/opus4/24390
Series (Serial Number):Volkswirtschaftliche Diskussionsreihe (163)
Publisher:Volkswirtschaftliches Institut, Universität Augsburg
Place of publication:Augsburg
Type:Working Paper
Language:English
Year of first Publication:1997
Release Date:2017/07/21
Tag:JEL: C44, G21
Pagenumber:24
Institutes:Wirtschaftswissenschaftliche Fakultät
Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre
Wirtschaftswissenschaftliche Fakultät / Institut für Volkswirtschaftslehre / Lehrstuhl für Ökonomie der Informationsgesellschaft
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Journals:Volkswirtschaftliche Diskussionsreihe