TY - JOUR
T1 - An empirical study of bank efficiencies and technology gaps in european banking
AU - Huang, Tai Hsin
AU - Chiang, Li Chih
AU - Chen, Kuan Chen
PY - 2011/7
Y1 - 2011/7
N2 - This paper extends the established literature on modeling the cost structures of Europe's banking sectors by combining the Fourier flexible cost function with time-varying technical efficiency (TE) under the framework of the meta-frontier, as proposed by Battese etal. (Journal of Productivity Analysis, Vol. 21 (2004), pp. 91-103) and O'Donnell etal. (Empirical Economics, Vol. 34 (2008), pp. 231-255). We find multiple technologies prevail in the nine sample countries, justifying the use of the meta-cost frontier. Measures TE and technology gap ratios are found to be positively correlated with each other, implying that a relatively technically efficient bank is possibly technologically efficient and vice versa.
AB - This paper extends the established literature on modeling the cost structures of Europe's banking sectors by combining the Fourier flexible cost function with time-varying technical efficiency (TE) under the framework of the meta-frontier, as proposed by Battese etal. (Journal of Productivity Analysis, Vol. 21 (2004), pp. 91-103) and O'Donnell etal. (Empirical Economics, Vol. 34 (2008), pp. 231-255). We find multiple technologies prevail in the nine sample countries, justifying the use of the meta-cost frontier. Measures TE and technology gap ratios are found to be positively correlated with each other, implying that a relatively technically efficient bank is possibly technologically efficient and vice versa.
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U2 - 10.1111/j.1467-9957.2010.02178.x
DO - 10.1111/j.1467-9957.2010.02178.x
M3 - Article
AN - SCOPUS:79959458712
SN - 1463-6786
VL - 79
SP - 839
EP - 860
JO - Manchester School
JF - Manchester School
IS - 4
ER -