US banking efficiency, 1984-1995

We estimate the time-varying average efficiencies of the US banks during 1984-1995 with four different efficiency estimators. Using these four series of efficiency estimates, we make a multivariate Kalman filter analysis to examine the efficiency trend in US banks during this period.

► Estimated efficiencies of US banks via a variety of estimators. ► Combined the estimates by utilizing the Kalman filter. ► Regulations and innovations had a positive effect on the efficiency of the US banks.