Investigating bank efficiency in transition economies: A window-based weight assurance region approach

Marta Degl’Innocenti (Lead / Corresponding author), Stavros Kourtzidis, Zeljko Sevic, Nickolaos Tzeremes

    Research output: Contribution to journalArticle

    10 Citations (Scopus)
    197 Downloads (Pure)

    Abstract

    This paper examines the efficiency of 116 banks for nine new EU members in Central and Eastern European (CEE) countries over the period 2004–2015. We employ the weight assurance region (WAR) and we treat deposits as an intermediate variable in a two-stage data-envelopment analysis model. We then expand the WAR model by including a window-based approach to take into account the patterns of efficiency over time. The results indicate a low level of efficiency over the entire period of analysis, especially for Eastern European and Balkan countries rather than Central European countries. Overall, we find that inefficiency in CEE countries is mainly driven by the profitability stage rather than the value added activity stage.
    Original languageEnglish
    Pages (from-to)23-33
    Number of pages11
    JournalEconomic Modelling
    Volume67
    Early online date13 Sep 2016
    DOIs
    Publication statusPublished - Dec 2017

    Fingerprint

    Assurance region
    Bank efficiency
    Transition economies
    Central and Eastern European countries
    New EU members
    Data envelopment analysis
    Profitability
    European countries
    Balkans
    Inefficiency
    Value added
    Deposits

    Keywords

    • Banking
    • Efficiency
    • Transition economies
    • Data envelopment analysis
    • Two-stage
    • Window analysis

    Cite this

    Degl’Innocenti, Marta ; Kourtzidis, Stavros ; Sevic, Zeljko ; Tzeremes, Nickolaos. / Investigating bank efficiency in transition economies : A window-based weight assurance region approach. In: Economic Modelling. 2017 ; Vol. 67. pp. 23-33.
    @article{2de2dc2cbf1243e3856dfe7b44fff39f,
    title = "Investigating bank efficiency in transition economies: A window-based weight assurance region approach",
    abstract = "This paper examines the efficiency of 116 banks for nine new EU members in Central and Eastern European (CEE) countries over the period 2004–2015. We employ the weight assurance region (WAR) and we treat deposits as an intermediate variable in a two-stage data-envelopment analysis model. We then expand the WAR model by including a window-based approach to take into account the patterns of efficiency over time. The results indicate a low level of efficiency over the entire period of analysis, especially for Eastern European and Balkan countries rather than Central European countries. Overall, we find that inefficiency in CEE countries is mainly driven by the profitability stage rather than the value added activity stage.",
    keywords = "Banking, Efficiency, Transition economies, Data envelopment analysis, Two-stage, Window analysis",
    author = "Marta Degl’Innocenti and Stavros Kourtzidis and Zeljko Sevic and Nickolaos Tzeremes",
    note = "{\circledC} 2016 Elsevier B.V. All rights reserved.",
    year = "2017",
    month = "12",
    doi = "10.1016/j.econmod.2016.08.015",
    language = "English",
    volume = "67",
    pages = "23--33",
    journal = "Economic Modelling",
    issn = "0264-9993",
    publisher = "Elsevier",

    }

    Investigating bank efficiency in transition economies : A window-based weight assurance region approach. / Degl’Innocenti, Marta (Lead / Corresponding author); Kourtzidis, Stavros; Sevic, Zeljko; Tzeremes, Nickolaos.

    In: Economic Modelling, Vol. 67, 12.2017, p. 23-33.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - Investigating bank efficiency in transition economies

    T2 - A window-based weight assurance region approach

    AU - Degl’Innocenti, Marta

    AU - Kourtzidis, Stavros

    AU - Sevic, Zeljko

    AU - Tzeremes, Nickolaos

    N1 - © 2016 Elsevier B.V. All rights reserved.

    PY - 2017/12

    Y1 - 2017/12

    N2 - This paper examines the efficiency of 116 banks for nine new EU members in Central and Eastern European (CEE) countries over the period 2004–2015. We employ the weight assurance region (WAR) and we treat deposits as an intermediate variable in a two-stage data-envelopment analysis model. We then expand the WAR model by including a window-based approach to take into account the patterns of efficiency over time. The results indicate a low level of efficiency over the entire period of analysis, especially for Eastern European and Balkan countries rather than Central European countries. Overall, we find that inefficiency in CEE countries is mainly driven by the profitability stage rather than the value added activity stage.

    AB - This paper examines the efficiency of 116 banks for nine new EU members in Central and Eastern European (CEE) countries over the period 2004–2015. We employ the weight assurance region (WAR) and we treat deposits as an intermediate variable in a two-stage data-envelopment analysis model. We then expand the WAR model by including a window-based approach to take into account the patterns of efficiency over time. The results indicate a low level of efficiency over the entire period of analysis, especially for Eastern European and Balkan countries rather than Central European countries. Overall, we find that inefficiency in CEE countries is mainly driven by the profitability stage rather than the value added activity stage.

    KW - Banking

    KW - Efficiency

    KW - Transition economies

    KW - Data envelopment analysis

    KW - Two-stage

    KW - Window analysis

    U2 - 10.1016/j.econmod.2016.08.015

    DO - 10.1016/j.econmod.2016.08.015

    M3 - Article

    VL - 67

    SP - 23

    EP - 33

    JO - Economic Modelling

    JF - Economic Modelling

    SN - 0264-9993

    ER -