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Journal of Financial Services Research

, Volume 4, Issue 2, pp 157–168 | Cite as

A nonparametric approach to measurement of efficiency and technological change: The case of large U.S. commercial banks

  • Elyas Elyasiani
  • Seyed M. Mehdian
Article

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.

Keywords

Empirical Result Technological Change Commercial Bank Efficiency Measure Technological Advancement 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 1990

Authors and Affiliations

  • Elyas Elyasiani
    • 1
  • Seyed M. Mehdian
    • 2
  1. 1.Department of EconomicsTemple UniversityUSA
  2. 2.Department of FinanceTemple UniversityUSA

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