An examination of cost structure and production performance of commercial banks in Singapore

Rezvanian, Rasoul; Mehdian, Seyed

doi:10.1016/s0378-4266(00)00172-2

Cited by 92 publications

(53 citation statements)

References 41 publications

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“…First of all, as expected, at least when it comes to overall efficiency and pure technical efficiency indexes, Singaporean banks on average appear to be ahead of the curve. Although based on a somewhat different set of inputs and outputs, the results are consistent with those reported by Rezvanian and Mehdian (2002). For the period of 1991-1997, this study finds that the average values of OTE, PTE, and SE indexes are 0.74, 0.86, and 0.87, respectively, for a sample of ten Singaporean banks.…”

Section: Baseline Specificationsupporting

confidence: 87%

Cross-Country Nonparametric Analysis of Bahrains Banking System

Grigorian

Manole

2013

Acta Universitatis Sapientiae, Economics and Business

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Abstract. Bahrains financial sector development strategy succeeded in building a leading regional banking center, which has become one of the main engines of growth and sources of employment. Based on banklevel productivity estimates obtained using non-parametric estimation, the paper concludes that Bahrain continues to occupy a front-runner position among sample GCC countries. Results also reveal that: (i) banks in Bahrain still lag behind their Singaporean counterparts (included in the study as a benchmark), and (ii) there is strong competition from other countries in the region. The results appear to be robust with respect to changes in the sample size and model specifications.

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Section: Baseline Specificationsupporting

confidence: 87%

Cross-Country Nonparametric Analysis of Bahrains Banking System

Grigorian

Manole

2013

Acta Universitatis Sapientiae, Economics and Business

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“…We will use this approach as our empirical benchmark model below. Other studies replace zero values with the minimum value of each output within the sample under consideration (Goisis et al, 2009;Rezvanian and Mehdian, 2002) or with a value equal to ten per cent of output at the sample means (Kim, 1987). An alternative solution is to use the Box-Cox transformation on output variables, e.g., the generalized (hybrid) translog function, as suggested by Caves et al (1980).…”

Section: Scale and Scope Economies With A Common Technologymentioning

confidence: 99%

Estimating economies of scale and scope with flexible technology

et al. 2016

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“…For recent examples of studies that use econometric estimates of cost functions to obtain measures of scope economies, see the analyses of: Japanese 1 In their pioneering paper on this topic, Panzar and Willig (1981, p268) state that a multi-product firm is characterised by economies of scope when "it is less costly to combine two or more product lines in one firm than to produce them separately". 2 Examples of factors that may lead to distortions in cost minimising signals in the electricity industry include union pressure to increase employment, political pressure to "build more stuff", and the possibility that a regulatory regime, such as rate of return regulation, may provide incentives for the firm to overcapitalise (see Averch and Johnston 1962). electricity supply by Ida and Kuwahara (2004); Australian telecommunications by Bloch, Madden and Savage (2001); US railroads by Ivaldi and McCullough (2001); commercial banks in Singapore by Rezvanian and Mehdian (2002); and US higher education by Laband and Lentz (2003).…”

Section: Introductionmentioning

confidence: 99%

A dual measure of economies of scope

2008

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Information on the economies of scope (or cost complementarities) between two or more output variables is traditionally obtained from the second derivative properties of an econometrically estimated multi-output cost function. However, in some instances the econometric estimation of a cost function may not be viable, because cost or input price data are not readily available or because the assumption of cost minimising behaviour is not appropriate in the industry at hand, perhaps due to government ownership or regulatory controls. In this paper we address this issue by utilising the duality between the cost and input distance functions in deriving an expression for a measure of economies of scope in terms of the derivatives of an input distance function. We derive expressions for the special cases of the CES and translog functional forms, and then provide an empirical illustration using sample data on Australian aged care facilities, an industry which is currently undergoing a major pricing and regulatory review. Our empirical results indicate that there is some evidence for existence of economies of scope between high care and low care patients, a result which is of particular interest to policy makers in this industry.

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An examination of cost structure and production performance of commercial banks in Singapore

Cited by 92 publications

References 41 publications

Cross-Country Nonparametric Analysis of Bahrains Banking System

Cross-Country Nonparametric Analysis of Bahrains Banking System

Estimating economies of scale and scope with flexible technology

A dual measure of economies of scope

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