A Nonparametric Approach to Measurement of Efficiency and Technological Change: The Case of Large U.S. Commercial Banks

Journal of Financial Services Research (1990) 4:157-168

Fox School of Business Research Paper

12 Pages Posted: 17 Jun 2014

See all articles by Elyas Elyasiani

Elyas Elyasiani

Temple University - Department of Finance

Seyed M. Mehdian

University of Michigan at Flint

Date Written: 1990

Abstract

The purpose of this paper is to derive the efficiency measures and the rate of technological change for a sample of large U.S. commercial banks by employing a nonparametric technique. This technique is used to construct a multiproduct production frontier relative to which the efficiency measures, of the banks in the sample are calculated and the displacement of which over time provides a measure of the rate of technological change. The empirical results indicate that the relevant frontier shifted inward between 1980 and 1985 reflecting a high pace of technological advancement achieved by the banks in the sample. The pace varied significantly across the banks with some banks even regressing over time.

Suggested Citation

Elyasiani, Elyas and Mehdian, Seyed M., A Nonparametric Approach to Measurement of Efficiency and Technological Change: The Case of Large U.S. Commercial Banks (1990). Journal of Financial Services Research (1990) 4:157-168; Fox School of Business Research Paper. Available at SSRN: https://ssrn.com/abstract=2451194

Elyas Elyasiani (Contact Author)

Temple University - Department of Finance ( email )

Fox School of Business and Management
Philadelphia, PA 19122
United States
215-204-5881 (Phone)
215-204-5698 (Fax)

Seyed M. Mehdian

University of Michigan at Flint ( email )

Flint, MI 48502
United States

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