Katalog GES



The stability of efficiency rankings when risk-preferences and objectives are different

1st Person: Koetter, Michael
Type of Publication: Paper
Language: English
Published: Deutsche Bundesbank 2006
Series: Discussion Paper Series 2
Keywords: Universalbank
Wirtschaftliche Effizienz
Technische Effizienz
Risiko
Risikopräferenz
Schätzung
Deutschland
Universal bank
Efficiency
Technical efficiency
Risk
Germany
Online: https://www.econstor.eu/bitstream/10419/19755/1/200608dkp_b.pdf
id
oai_econstor.eu_10419-19755
recordtype
econstor
institution
MPG
collection
ECONSTOR
title
The stability of efficiency rankings when risk-preferences and objectives are different
spellingShingle
The stability of efficiency rankings when risk-preferences and objectives are different
Universalbank
Wirtschaftliche Effizienz
Technische Effizienz
Risiko
Risikopräferenz
Schätzung
Deutschland
Universal bank
Efficiency
Technical efficiency
Risk
Germany
Koetter, Michael
Discussion Paper Series 2
title_short
The stability of efficiency rankings when risk-preferences and objectives are different
title_full
The stability of efficiency rankings when risk-preferences and objectives are different
title_fullStr
The stability of efficiency rankings when risk-preferences and objectives are different
title_full_unstemmed
The stability of efficiency rankings when risk-preferences and objectives are different
title_sort
The stability of efficiency rankings when risk-preferences and objectives are different
format
electronic Article
format_phy_str_mv
Paper
publisher
Deutsche Bundesbank
publishDate
2006
language
English
topic
Universalbank
Wirtschaftliche Effizienz
Technische Effizienz
Risiko
Risikopräferenz
Schätzung
Deutschland
Universal bank
Efficiency
Technical efficiency
Risk
Germany
topic_facet
Universal bank
Efficiency
Technical efficiency
Risk
Germany
author
Koetter, Michael
description
We analyze the stability of efficiency rankings of German universal banks between 1993 and 2004. First, we estimate traditional efficiency scores with stochastic cost and alternative profit frontier analysis. Then, we explicitly allow for different risk preferences and measure efficiency with a structural model based on utility maximization. Using the almost ideal demand system, we estimate input and profit demand functions to obtain proxies for expected return and risk. Efficiency is then measured in this risk-return space. Mean risk-return efficiency is somewhat higher than cost and considerably higher than profit efficiency. More importantly, rankorder correlation between these measures are low or even negative. This suggests that best-practice institutes should not be identified on the basis of traditional efficiency measures alone. Apparently, low cost and/or profit efficiency may merely result from alternative yet efficiently chosen risk-return trade-offs.
url
https://www.econstor.eu/bitstream/10419/19755/1/200608dkp_b.pdf
series
Discussion Paper Series 2
seriesStr
Discussion Paper Series 2
Discussion Paper Series 2
series2
Discussion Paper Series 2
series2_facet
Discussion Paper Series 2
up_date
2019-06-15T02:50:17.931Z
_version_
1636373151262703618

Similar Items

Cannot find similar records

Library Services

Search Options

Quick links

Orientation