Delis, Manthos D and Papanikolaou, Nikolaos I (2009): Determinants of bank efficiency: Evidence from a semi-parametric methodology. Published in: Managerial Finance , Vol. 35, No. 3 (2009): pp. 260-275.
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In this paper, we use a semi-parametric two-stage model to examine the effect of bank-specific, industry-specific and macroeconomic determinants of bank efficiency. This method, proposed by Simar and Wilson (2007), relaxes several deficiencies of previous two-stage analyses, which regress non-parametric estimates of bank efficiency on exogenous determinants. In particular, we propose a bootstrap procedure to be used in the second stage and we compare the results obtained to the equivalents of a Tobit model. We suggest that the Tobit regressions inaccurately provide insignificant estimates for the effect of bank size, industry concentration and economic investment on bank efficiency, a fact that illustrates the power of the new method. Since the effect of these determinants has been ambiguous in previous literature, this may be a desideratum for future research.
|Item Type:||MPRA Paper|
|Original Title:||Determinants of bank efficiency: Evidence from a semi-parametric methodology|
|Keywords:||Bank efficiency; semi-parametric models|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Manthos Delis|
|Date Deposited:||10. Mar 2009 05:42|
|Last Modified:||13. Feb 2013 07:34|
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