Sensitivity Analysis of Efficiency and Malmquist Productivity Indices: An Application to the Spanish Savings Banks

Emili Tortosa-Ausina, Emili Grifell-Tatjé, Carmen Armero, David Conesa

Research output: Working paper

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Abstract

Hypothesis testing and statistical precision in the context of nonparametric efficiency and productivity measurement have been investigated since the early 1990s. Recent contributions focus on this matter through the use of resampling methods—i.e., bootstrapping techniques. However, empirical evidence is still practically non-existent. This gap is more noticeable in the case of banking efficiency studies, where the literature is immense. In this paper, we explore
productivity growth and productive efficiency for Spanish savings banks over the (initial) postderegulation period 1992–1998 using Data Envelopment Analysis (DEA) and bootstrapping techniques. Results show that productivity growth has occurred, mainly due to improvement in production possibilities, and that mean efficiency has remained fairly constant over time. The bootstrap analysis yields further evidence, as for many firms productivity growth, or decline, is not statistically significant. With regard to efficiency measurement, the bootstrap reveals that the disparities in the original efficiency scores of some firms are lessened to a great extent
Original languageEnglish
Place of PublicationValencia
Number of pages32
Publication statusPublished - 2002

Publication series

NameIVIE working papers
Publisher Instituto Valenciano de Investigaciones Económicas
No.2002/30

Keywords

  • bootstrap
  • data envelopment analysis
  • efficiency
  • productivity
  • savings bank

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