A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry

This paper proposes a semiparametric smooth-varying coefficient input distance frontier model with multiple outputs and multiple inputs, panel data, and determinants of technical inefficiency for the Indonesian banking industry during the period 2000 to 2015. The technology parameters are unknown fu...

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Main Authors: Salim, Ruhul, Sun, Kai
Format: Journal Article
Published: Springer Nature 2020
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/82032
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author Salim, Ruhul
Sun, Kai
author_facet Salim, Ruhul
Sun, Kai
author_sort Salim, Ruhul
building Curtin Institutional Repository
collection Online Access
description This paper proposes a semiparametric smooth-varying coefficient input distance frontier model with multiple outputs and multiple inputs, panel data, and determinants of technical inefficiency for the Indonesian banking industry during the period 2000 to 2015. The technology parameters are unknown functions of a set of environmental factors that shift the input distance frontier non-neutrally. The computationally simple constraint weighted bootstrapping method is employed to impose the regularity constraints on the distance function. As a by-product, total factor productivity (TFP) growth is estimated and decomposed into technical change, scale component, and efficiency change. The distance elasticities, marginal effects of the environmental factors on the distance elasticities, temporal behavior of technical efficiency, and also TFP growth and its components are investigated.
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institution Curtin University Malaysia
institution_category Local University
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publishDate 2020
publisher Springer Nature
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spelling curtin-20.500.11937-820322021-12-03T02:56:15Z A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry Salim, Ruhul Sun, Kai 1402 - Applied Economics This paper proposes a semiparametric smooth-varying coefficient input distance frontier model with multiple outputs and multiple inputs, panel data, and determinants of technical inefficiency for the Indonesian banking industry during the period 2000 to 2015. The technology parameters are unknown functions of a set of environmental factors that shift the input distance frontier non-neutrally. The computationally simple constraint weighted bootstrapping method is employed to impose the regularity constraints on the distance function. As a by-product, total factor productivity (TFP) growth is estimated and decomposed into technical change, scale component, and efficiency change. The distance elasticities, marginal effects of the environmental factors on the distance elasticities, temporal behavior of technical efficiency, and also TFP growth and its components are investigated. 2020 Journal Article http://hdl.handle.net/20.500.11937/82032 10.1007/s11123-020-00589-3 Springer Nature fulltext
spellingShingle 1402 - Applied Economics
Salim, Ruhul
Sun, Kai
A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry
title A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry
title_full A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry
title_fullStr A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry
title_full_unstemmed A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry
title_short A Semiparametric Stochastic Input Distance Frontier Model with Application to the Indonesian Banking Industry
title_sort semiparametric stochastic input distance frontier model with application to the indonesian banking industry
topic 1402 - Applied Economics
url http://hdl.handle.net/20.500.11937/82032