Artikel

Cluster-adjusted DEA efficiency in the presence of heterogeneity: An application to banking sector

This paper improves on the issues of extreme data points and heterogeneity found in the linear programming data envelopment analysis (DEA) by presenting a cluster-adjusted DEA model (DEA with cluster approach). This analysis, based on efficiency, determines the number of clusters via Gap statistic and Elbow methods. We use the December quarterly panel data consisting of 122 U.S agricultural banks across 37 states from 2000 to 2017 to estimate the cluster-adjusted DEA model. Empirical results show differences in the estimated DEA efficiency measures with and without a clustering approach. Furthermore, using non-parametric tests, the results of Ansari-Bradley, Kruskal Wallis, and Wilcoxon Rank Sum tests suggest that the cluster-adjusted DEA model provides statistically better efficiency measures in comparison to the DEA model without a clustering approach.

Language
Englisch

Bibliographic citation
Journal: Open Economics ; ISSN: 2451-3458 ; Volume: 3 ; Year: 2020 ; Issue: 1 ; Pages: 50-69 ; Warsaw: De Gruyter

Classification
Wirtschaft
General Economics: General
Econometric and Statistical Methods and Methodology: General
Semiparametric and Nonparametric Methods: General
Operations Research; Statistical Decision Theory
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Subject
Banking
Cluster analysis
Efficiency Analysis
Nonparametric tests

Event
Geistige Schöpfung
(who)
Sakouvogui, Kekoura
Shaik, Saleem
Addey, Kwame Asiam
Event
Veröffentlichung
(who)
De Gruyter
(where)
Warsaw
(when)
2020

DOI
doi:10.1515/openec-2020-0004
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Sakouvogui, Kekoura
  • Shaik, Saleem
  • Addey, Kwame Asiam
  • De Gruyter

Time of origin

  • 2020

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