This paper aims at investigating the efficiency of European and U.S. commercial banks. Scale and scope economies indicators, as well as a measurement of X-efficiency are derived from three cost functions: Fourier flexible form, translog and Box-Cox. This allows checking the stability and the robustness of the evidence across the different specifications. Our results over the period 1995-98 show that overall the largest banks do not seem to have higher efficiency scores. Therefore further enlargement of the production size does not necessarily lead to production gains.
This paper aims at investigating the efficiency of European and U.S. commercial banks. Scale and scope economies indicators, as well as a measurement of X-efficiency are derived from three cost functions: Fourier flexible form, translog and Box-Cox. This allows checking the stability and the robustness of the evidence across the different specifications. Our results over the period 1995-98 show that overall the largest banks do not seem to have higher efficiency scores. Therefore further enlargement of the production size does not necessarily lead to production gains.
An efficiency analysis of banking systems: a comparison of European and United States large commercial banks using different functional forms / Maggi, Bernardo; Stefania, Rossi. - In: THE ICFAI JOURNAL OF BANK MANAGEMENT. - ISSN 0972-6918. - 2:(2006), pp. 7-35.
An efficiency analysis of banking systems: a comparison of European and United States large commercial banks using different functional forms
MAGGI, Bernardo;
2006
Abstract
This paper aims at investigating the efficiency of European and U.S. commercial banks. Scale and scope economies indicators, as well as a measurement of X-efficiency are derived from three cost functions: Fourier flexible form, translog and Box-Cox. This allows checking the stability and the robustness of the evidence across the different specifications. Our results over the period 1995-98 show that overall the largest banks do not seem to have higher efficiency scores. Therefore further enlargement of the production size does not necessarily lead to production gains.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
