Data envelopment analysis, truncated regression and double-bootstrap for panel data with application to Chinese banking

摘要

Highlights?We modify the two-stage data envelopment analysis approach to a panel data setting.?Monte Carlo experiments illustrate the pros and cons of the proposed algorithm.?We examine the efficiency benefits of asset diversification in Chinese banking.?Increasing asset share of other earning assets improves bank efficiency.AbstractWe investigate the impact of earning asset diversification on Chinese bank efficiency from 2006 to 2011. We do this by adapting the current two-stage data envelopment analysis approach to a panel data setting so that we can account for technology change over time. Our Monte Carlo experiments illustrate the advantages and disadvantages of the proposed new algorithm over the conventional approach. When applied to Chinese banking data, the regression results reveal that increasing the asset share of other earning assets (including