Robust nonparametric estimation of efficiency and technical change in U.S. commercial banking

David Wheelock and Paul Wilson

No 2003-037, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper examines the performance of the U.S. commercial banking industry over 1984-2002. Rather than measuring performance relative to the unknown (and difficult-to-estimate) boundary of the production set, performance for a given bank is measured relative to expected maximum output among m banks using no more of each input than the given bank. This approach permits fully non-parametric estimation with vn-consistency avoiding the usual curse of dimensionality that plagues traditional non-parametric efficiency estimators. The resulting estimates are robust with respect to outliers and noise in the data.

Keywords: Banks and banking; Econometrics (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (16)

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Working Paper: Robust Nonparametric Estimation of Efficiency and Technical Change in U.S. Commercial Banking (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlwp:2003-037

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DOI: 10.20955/wp.2003.037

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