Rational cost inefficiency and convergence in Chinese banks

Kent Matthews and Zhiguo Xiao ()

Economic Modelling, 2020, vol. 91, issue C, 696-704

Abstract: •We construct measures of cost inefficiency in Chinese banks using bootstrap DEA.•Cost inefficiency is separated into technical and allocative inefficiency.•We argue that allocative inefficiency is the result of rational decision making.•Hypotheses as to the source and properties of allocative inefficiency are tested.•The source of allocative inefficiency shows a high level of management efficiency.

Keywords: Modelling bank efficiency; China; Data envelopment analysis; Bootstrapping (search for similar items in EconPapers)
JEL-codes: D23 G21 G28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:91:y:2020:i:c:p:696-704

DOI: 10.1016/j.econmod.2019.07.008

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