Abstract
This study considers the issues of noise-to-signal estimation, finite sample performance and hypothesis testing for a new nonparametric and stochastic efficiency estimation technique. We apply the technique for analyzing the efficiency of European banks from various regions and with various specializations. The technique seems well suited for this application area because banking inputs and outputs generally are measured with error, the banking production technology is not well-defined and large banking data sets such as BankScope allow for a nonparametric approach.
Original language | English |
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Pages (from-to) | 2065-2080 |
Number of pages | 16 |
Journal | Journal of Banking and Finance |
Volume | 31 |
Issue number | 7 |
DOIs | |
Publication status | Published - Jul 1 2007 |
Keywords
- European banks
- Finite sample performance
- Hypothesis testing
- Noise-to-signal estimation
- Nonparametric efficiency estimation
ASJC Scopus subject areas
- Finance
- Economics and Econometrics