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http://hdl.handle.net/10419/19755
  

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dc.contributor.authorKoetter, Michaelen_US
dc.date.accessioned2009-01-28T16:02:55Z-
dc.date.available2009-01-28T16:02:55Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/19755-
dc.description.abstractWe analyze the stability of efficiency rankings of German universal banks between 1993 and 2004. First, we estimate traditional efficiency scores with stochastic cost and alternative profit frontier analysis. Then, we explicitly allow for different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal demand system, we estimate input and profit demand functions to obtain proxies for expected return and risk. Efficiency is then measured in this risk-return space. Mean risk-return efficiency is somewhat higher than cost and considerably higher than profit efficiency. More importantly, rankorder correlation between these measures are low or even negative. This suggests that best-practice institutes should not be identified on the basis of traditional efficiency measures alone. Apparently, low cost and/or profit efficiency may merely result from alternative yet efficiently chosen risk-return trade-offs.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion Paper, Series 2: Banking and Financial Supervision 2006,08en_US
dc.subject.jelG33en_US
dc.subject.jelG21en_US
dc.subject.jelD21en_US
dc.subject.jelL21en_US
dc.subject.ddc330en_US
dc.subject.keywordRisken_US
dc.subject.keywordefficiencyen_US
dc.subject.keywordbanksen_US
dc.subject.keywordGermanyen_US
dc.subject.stwUniversalbanken_US
dc.subject.stwWirtschaftliche Effizienzen_US
dc.subject.stwTechnische Effizienzen_US
dc.subject.stwRisikoen_US
dc.subject.stwRisikopräferenzen_US
dc.subject.stwSchätzungen_US
dc.subject.stwDeutschlanden_US
dc.titleThe stability of efficiency rankings when risk-preferences and objectives are differenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn519702921en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp2:5096-
Appears in Collections:Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank

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