Analysing Efficiency Modelling Issues Regarding ‘z’ Variables: An Example from China’s Banking System

Li, Bingyu (2014) Analysing Efficiency Modelling Issues Regarding ‘z’ Variables: An Example from China’s Banking System. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

X-efficiency is a useful and intuitive tool to evaluate a bank’s performance,

it helps to examine whether banks use their inputs to maximum their

outputs or for a certain amount of outputs, do they minimize the cost.

This paper seeks to examine the X-efficiency levels of Chinese banking

system using a sample with 247 observations over the period 2005 to

2013. Stochastic distance function is adopted to estimate the efficiency

frontier. The findings suggest that the overall efficiency levels of China’s

banking system increased significantly over this period. The modelling

implication of this paper is that researchers need to carefully choose the z

variables included in the model since it will affect efficiency frontier by

shifting and/or shaping it.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 12 Nov 2014 09:23
Last Modified: 23 Dec 2017 19:51
URI: https://eprints.nottingham.ac.uk/id/eprint/27513

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