Trademarking activities and total factor productivity: some evidence for British commercial banks using a metafrontier approach

In this paper, we compute a non-parametric Metafrontier Malmquist index to evaluate the Total Factor Productivity (TFP) change among UK-based trademarking and non-trademarking commercial banks between 2005 and 2013. The use of the metafrontier approach allows us to: a) identify the drivers of TFP growth for each group of banks, b) compare the TFP growth of each group to the TFP growth experienced by the whole industry, and c) assess the extent to which the former catches up with the latter measured along the metafrontier. Our results suggest that TFP has been increasing among trademarking banks up to the onset of the financial crisis but this process has since reversed. The catch-up indexes suggest that both groups of banks were catching up with the metafrontier up to the financial crisis although the drivers of this process differed between the two groups. After the financial crisis, improvements in technology have been driven by a small number of commercial banks i.e. the non- trademarking banks. These results suggest that a large section of the commercial banking sector has not been able to overcome the effects of the financial crisis

Efficiency and productivity growth in the European airlines industry : applications of data envelopment analysis, Malmquist productivity index and Tobit analysis

In its early phase of liberalisation process along with some privatisation experiences, the European airlines industry provides a fascinating case study to investigate the recent performance record and assess the determinants of performance. We aim to analyse the performance of 17 European airlines over the period 1991 to 1995. We utilise the DEA Windows analysis to capture efficiency changes over time and the DEA based Malmquist productivity index to measure the productivity change and decompose any change into efficiency and frontier shift effects. Further we use Tobit analysis to determine the potential determinants of airline efficiency. We find that results from windows analysis reveal an increasing trend in the efficiency scores for most airlines in the sample whereas Malmquist analysis shows a decline in the first two periods, but some evidence of turnaround in 1993-1994, probably with the introduction of the third liberalisation package. The Tobit results show no significant role for state ownership, but indicate the importance of subsidy and concentration policies in explaining the inefficiency differences among airlines

The performance of European airlines in an era of liberalisation, 1991-1995

European airlines are entering a gradual period of economic liberalisation. This study aims to analyse the performance of 17 European airlines during the early stages (1991-1995) of the liberalisation process. We utilise nonparametric methodologies: Data Envelopment Analysis (DEA) and the DEA based Malmquist productivity index. DEA Windows analysis is used to capture efficiency changes over time whilst the DEA based Malmquist productivity index is used to measure the productivity change and decompose any change into efficiency and frontier shift effects. We find that results from windows analysis reveal an increasing trend in the efficiency scores for most airlines in the sample whereas Malmquist analysis show a decline in the first two periods, but some evidence of turnaround in 1993-1994, probably with the introduction of the third liberalisation package

Financial liberalisation, privatisation and productivity in banking : the experience of two emerging economies

Banking systems in emerging and developing economies hold the key to economic growth and productivity change at the macroeconomic level. As financial globalization proceeds, many emerging economies are reforming their banking systems through the process of liberalisation, privatisation and deregulation, especially where state-owned banks have previously been dominant. This thesis uses both parametric and non-parametric methods, namely and Stochastic Frontier Analysis (SFA) and Data Envelopment Analysis (DEA) respectively, to measure the efficiency and productivity growth in the banking systems of two emerging economies – Turkey and Egypt. Coelli, Perelman and Romano (1999) approach is used for the banking sector for the first time in the literature. The pervasive gap is also addressed in the literature by empirically comparing the DEA and SFA efficiency scores following Bauer et al. (1998) conditions. A generalised parametric Malmquist approach is specified using the distance functions for both data sets. The findings show that Turkey and Egypt have various similarities. Both have undergone significant regulatory, ownership and market structure changes in the last two decades. The reform policies in both countries are stimulated by the IMF and World Bank. Egypt, as an emerging economy, has introduced a wide range of structural economic reforms to create a viable banking system in the past decade by adopting a cautious approach in liberalisation implementation. However, Turkey‘s approach was expeditious. Both banking sectors efficiency and productivity improved as response to the liberalisation policies. However, Turkey’s experience of financial crisis overwhelmed the obtained efficiency. The results on the separate economies suggest that scale effects can be important in identifying the initial impact of financial liberalisation policies on the productivity of banking sector.EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Assessing bank efficiency and performance with operational research and artificial intelligence techniques: A survey

This paper presents a comprehensive review of 196 studies which employ operational research (O.R.) and artificial intelligence (A.I.) techniques in the assessment of bank performance. Several key issues in the literature are highlighted. The paper also points to a number of directions for future research. We first discuss numerous applications of data envelopment analysis which is the most widely applied O.R. technique in the field. Then we discuss applications of other techniques such as neural networks, support vector machines, and multicriteria decision aid that have also been used in recent years, in bank failure prediction studies and the assessment of bank creditworthiness and underperformance.Artificial intelligence Banks Data envelopment analysis Efficiency Operational research Literature review

Cointegration, Causality and Wagner's Law: A test for Northern Cyprus, 1977-1996.

The purpose of this study is to analyse public expenditure growth in Northern Cyprus during the period 1977-1996. We test the validity of Wagner’s Law that there is a long-run tendency for public expenditure to grow relative to national income. This implies that public expenditure can be treated as an outcome, or an endogenous factor, not a cause of growth in national income. Conversely, Keynesian proposition treats public expenditure as an exogenous factor, which could be utilised as a policy instrument. In the former approach, the causality runs from national income to public expenditure whereas in the latter proposition, causality runs from public expenditure to national income. Utilising recent advances in co integration and causality techniques, in the case of Northern Cyprus economy, we find that there is a mixed evidence in support of Wagner’s Law

Evaluating the efficiency of Turkish commercial banks: an application of DEA and Tobit Analysis

The purpose of this paper is to investigate the performance of Turkish (TR) commercial banking sector. We evaluate the technical efficiency of individual TR banks using the nonparametric frontier methodology, the Data Envelopment Analysis (DEA). To investigate the determinants of efficiency, we use the Tobit model. This analysis aims to explain the variation in calculated efficiencies to a set of explanatory variables, i.e. banks size, number of branches, profitability, ownership, and capital adequacy ratio. The analysis covers the year, 1998. We find that larger and profitable banks are more likely to operate at higher levels of technical efficiency. Also another finding reveals that the capital adequacy ratio has a statistically significant adverse impact on the performance of banks, which may reflect a risk-return tradeoff in the sector