The Dominance Of Product Mix Over Productivity And Technical Change In The U.S. Banking

Topics:
Efficiency
Tags:
Change,
Financial Services,
Productivity,
Profit Change,
University Of Richmond
Source:
University of Richmond

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Overview: Utilizing the developments in the Data Envelopment Analysis (DEA) technique, this paper examines the profit changes for a sample of U.S. commercial banks for the period 1999 - 2005. The profit change is decomposed into main profit drivers such as: price effect, quantity effect, productivity effect, activity effect, operating efficiency, product mix and resource mix. The original DEA distance functions are bias-corrected using a bootstrap technique. The results obtained show that the divergence in the performance of large banks versus small banks is due to the higher contribution of product mix relative to changes in productivity and improvements in technical change.

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Format: PDF | Size: 273KB | Date: Dec 2006 | Pages: 36


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