Productivity and efficiency at bank holding companies in the U.S.: a time-varying heterogeneity approach

Feng, G; Peng, B; Zhang, X

Productivity and efficiency at bank holding companies in the U.S.: a time-varying heterogeneity approach

Feng, G Peng, B

Zhang, X

Permalink

Publication Type:: Journal Article
Citation:: Journal of Productivity Analysis, 2017, 48 (2-3), pp. 179 - 192
Issue Date:: 2017-12-01

Closed Access

	Filename	Description	Size
	10.1007%2Fs11123-017-0515-5.pdf	Published Version	628.66 kB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	Feng, G	en_US
dc.contributor.author	Peng, B https://orcid.org/0000-0003-4231-4713	en_US
dc.contributor.author	Zhang, X	en_US
dc.date.issued	2017-12-01	en_US
dc.identifier.citation	Journal of Productivity Analysis, 2017, 48 (2-3), pp. 179 - 192	en_US
dc.identifier.issn	0895-562X	en_US
dc.identifier.uri	http://hdl.handle.net/10453/125244
dc.description.abstract	© 2017, Springer Science+Business Media, LLC. This paper investigates the productivity and efficiency of large bank holding companies (BHCs) in the United States over the period 2004–2013, by estimating a translog stochastic distance frontier (SDF) model with time-varying heterogeneity. The main feature of this model is that a multi-factor structure is used to disentangle time-varying unobserved heterogeneity from inefficiency. Our empirical results strongly suggest that unobserved heterogeneity is not only present in the U.S. banking industry, but also varies over time. Our results from the translog SDF model with time-varying heterogeneity show that the majority of large BHCs in the U.S. exhibit increasing returns to scale, a small percentage exhibit constant returns to scale, and an even smaller percentage exhibit decreasing returns to scale. Our results also show that on average the BHCs have experienced small positive or even negative technical change and productivity growth.	en_US
dc.relation.ispartof	Journal of Productivity Analysis	en_US
dc.relation.isbasedon	10.1007/s11123-017-0515-5	en_US
dc.subject.classification	Economics	en_US
dc.title	Productivity and efficiency at bank holding companies in the U.S.: a time-varying heterogeneity approach	en_US
dc.type	Journal Article
utslib.citation.volume	2-3	en_US
utslib.citation.volume	48	en_US
utslib.for	1402 Applied Economics	en_US
utslib.for	1403 Econometrics	en_US
utslib.for	1401 Economic Theory	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Science
pubs.organisational-group	/University of Technology Sydney/Faculty of Science/School of Mathematical and Physical Sciences
utslib.copyright.status	closed_access
pubs.issue	2-3	en_US
pubs.publication-status	Published	en_US
pubs.volume	48	en_US

Abstract:

© 2017, Springer Science+Business Media, LLC. This paper investigates the productivity and efficiency of large bank holding companies (BHCs) in the United States over the period 2004–2013, by estimating a translog stochastic distance frontier (SDF) model with time-varying heterogeneity. The main feature of this model is that a multi-factor structure is used to disentangle time-varying unobserved heterogeneity from inefficiency. Our empirical results strongly suggest that unobserved heterogeneity is not only present in the U.S. banking industry, but also varies over time. Our results from the translog SDF model with time-varying heterogeneity show that the majority of large BHCs in the U.S. exhibit increasing returns to scale, a small percentage exhibit constant returns to scale, and an even smaller percentage exhibit decreasing returns to scale. Our results also show that on average the BHCs have experienced small positive or even negative technical change and productivity growth.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/125244