Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
987056 | Review of Financial Economics | 2013 | 9 Pages |
Abstract
In this study we estimate technical efficiency of Indian commercial banks from 1989 to 2009, using a multiple-output generalized stochastic production frontier and analyze the effects of financial reforms on estimated efficiency. The generalized method estimates technical efficiency in the presence of multiple outputs, filling a gap in the existing literature. Our results show that Indian commercial banks were operating with 64% efficiency on average during the sample period. The initial phase of reform had a positive impact on while the later phase adversely affected technical efficiency of banks. Public sector banks show higher efficiency levels compared to private and foreign banks.
Related Topics
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Authors
Aditi Bhattacharyya, Sudeshna Pal,