This research analyzes the decomposition of the total factorproductivity (TFP) for the Chilean banking sector. We use twomethodologies to accomplish this goal: Stochastic FrontierApproach and Data Envelopment Analysis. The decompositionsconsider technical efficiency, scope efficiency, and technologicalprogress. The last factor is the most important driven for TPF. Wewere able to reject the usual hypothesis that public financialinstitutions are less efficient than the private banking. In addition,potential banks candidates of a takeover tend to be more productiveand the evidence not supports the hypothesis that foreign banks aremore efficient than domestic.
Keywords:
Productivity, efficiency, chilean banking system, stochastic frontier, data envelopment analysis
Vergara, M., & Johnson, C. (2009). Determinants of the productivity of banks in Chile. Estudios De Administración, 16(2), 1–46. https://doi.org/10.5354/0719-0816.2009.56405
