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Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank >

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dc.contributor.authorKoetter, Michaelen_US
dc.contributor.authorKarmann, Alexanderen_US
dc.contributor.authorFiorentino, Elisabettaen_US
dc.date.accessioned2009-01-28T16:02:56Z-
dc.date.available2009-01-28T16:02:56Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/19757-
dc.description.abstractWe investigate the consistency of efficiency scores derived with two competing frontier methods in the financial economics literature: Stochastic Frontier and Data Envelopment Analysis. We sample 34,192 observations for all German universal banks and analyze whether efficiency measures yield consistent results according to five criteria between 1993 and 2004: levels, rankings, identification of extreme performers, stability over time and correlation to standard accounting-based measures of performance. We find that non-parametric methods are particularly sensitive to measurement error and outliers. Furthermore, our results show that accounting for systematic differences among commercial, cooperative and savings banks is important to avoid misinterpretation about the status of efficiency of the total banking sector. Finally, despite ongoing fundamental changes in Europe?s largest banking system, efficiency rank stability is very high in the short run. However, we also find that annually estimated efficiency scores are markedly less stable over a period of twelve years, in particular for parametric methods. Thus, the implicit assumption of serial independence of bank production in most methods has an important influence on obtained efficiency rankings.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion Paper, Series 2: Banking and Financial Supervision 2006,10en_US
dc.subject.jelL25en_US
dc.subject.jelG21en_US
dc.subject.jelD24en_US
dc.subject.ddc330en_US
dc.subject.keywordCost Efficiencyen_US
dc.subject.keywordBanksen_US
dc.subject.keywordStochastic Frontier Approachen_US
dc.subject.keywordData Envelopment Analysisen_US
dc.subject.stwBanken_US
dc.subject.stwKostenfunktionen_US
dc.subject.stwTechnische Effizienzen_US
dc.subject.stwData-Envelopment-Analyseen_US
dc.subject.stwSch├Ątzungen_US
dc.subject.stwDeutschlanden_US
dc.titleThe cost efficiency of German banks: a comparison of SFA and DEAen_US
dc.typeWorking Paperen_US
dc.identifier.ppn520781538en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp2:5157-
Appears in Collections:Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank

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