Year: 2010
Type: article
Study designs: Systematic Review, Meta-Analysis
Abstract: This article presents a meta-regression analysis of 32 studies on frontier efficiency measurement in banking, focusing on the sensitivity of the reported estimates to the methodological design. Our findings suggest that study design is crucial for the resulting scores. The differences between the scores estimated using parametric and non-parametric approaches arise when the Fourierflexible functional form is used since this functional form yields lower scores. Generally, the higher the number of observations, the higher is the average estimated efficiency. The removal of scale effects using equity capital increases the profit efficiency but it is insignificant for other scores. The efficiency analysis should distinguish the commercial banking from other bank types because the former tends to deliver lower efficiency scores.
Source: Prague Economic Papers
DOI: 10.18267/j.pep.379
Authors: Zuzana Iršová, Tomáš Havránek
Institutions: Charles University, Czech National Bank
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W1550245797