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dc.contributor.authorLiuen
dc.contributor.authorWangen
dc.contributor.authorMaen
dc.contributor.authorRahmanen
dc.contributor.authorSriboonchittaen
dc.date.accessioned2020-02-26T18:55:51Z
dc.date.available2020-02-26T18:55:51Z
dc.identifier.urihttp://hdl.handle.net/10026.1/15406
dc.descriptionNo embargo required.en
dc.description.abstract

<jats:p>The paper develops a simultaneous equations stochastic frontier model (SFM) with dependent random noise and inefficiency components of individual equations as well as allowing dependence across all equations of the model using copula functions. First, feasibility of our developed model was verified via two simulation studies. Then the model was applied to assess cost efficiency and market power of the banking industry of China using a panel data of 37 banks covering the period 2013–2018. Results confirmed that our simultaneous SFM with dependent random noise and inefficiency components outperformed its predecessor, which is a simultaneous SFM with dependent composite errors but with independent random noise and inefficiency components of individual SFMs as well as the conventional single-equation SFM. Apart from the statistical and computational superiority of our developed model, we also see that Chinese banks in general have a high level of cost efficiency and that competition in the banking industry of China mainly exists in state-owned banks and joint stock banks. Presence of economies of scales as well as diseconomies of scales were found in different banks. Also, the state-owned banks embraced most sophisticated technologies thereby allowing them to operate with the highest level of cost efficiency.</jats:p>

en
dc.format.extent238 - 238en
dc.languageenen
dc.language.isoenen
dc.publisherMDPI AGen
dc.titleA Simultaneous Stochastic Frontier Model with Dependent Error Components and Dependent Composite Errors: An Application to Chinese Banking Industryen
dc.typeJournal Article
plymouth.issue2en
plymouth.volume8en
plymouth.journalMathematicsen
dc.identifier.doi10.3390/math8020238en
plymouth.organisational-group/Plymouth
plymouth.organisational-group/Plymouth/Faculty of Arts, Humanities and Business
plymouth.organisational-group/Plymouth/Faculty of Arts, Humanities and Business/Plymouth Business School
plymouth.organisational-group/Plymouth/Users by role
plymouth.organisational-group/Plymouth/Users by role/Academics
dcterms.dateAccepted2020-02-10en
dc.rights.embargodate2020-03-03en
dc.identifier.eissn2227-7390en
dc.rights.embargoperiodNot knownen
rioxxterms.versionofrecord10.3390/math8020238en
rioxxterms.licenseref.urihttp://www.rioxx.net/licenses/all-rights-reserveden
rioxxterms.typeJournal Article/Reviewen


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