A comparison of DEA and SFA using micro- and macro-level perspectives: Efficiency of Chinese local banks

Thiago Silva (), Benjamin Tabak, Daniel Cajueiro and Marina Villas Boas Dias

Physica A: Statistical Mechanics and its Applications, 2017, vol. 469, issue C, 216-223

Abstract: This study investigates to which extent results produced by a single frontier model are reliable, based on the application of data envelopment analysis and stochastic frontier approach to a sample of Chinese local banks. Our findings show they produce a consistent trend on global efficiency scores over the years. However, rank correlations indicate they diverge with respect to individual performance diagnoses. Therefore, these models provide steady information on the efficiency of the banking system as a whole, but they become divergent at the individual level.

Keywords: Efficiency; SFA; DEA; Financial system (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:469:y:2017:i:c:p:216-223

DOI: 10.1016/j.physa.2016.11.041

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