Efficiency Convergence Patterns: Evidence from the EU
Thu, 03 Nov 2016 15:43:00 GMT
Quantitative Analysis of Business, Economics and Finance (QABEF) Research Group Seminar
Speaker: Dr. Vasileios Pappas – University of Bath
Wed, 9 Nov 2016, 13:15, BSG/20
All staff and students welcome
This paper examines efficiency convergence in EU banking sector for the period 2000-14. Our analysis is based on commercial, cooperative and saving banks. We use a novel Bayesian dynamic frontier modelling approach that modifies the Phillips and Sul (2007) clustering convergence technique and distinguishes between short and long-run efficiency estimates. We find significant differences in short-run efficiencies between the EU-15 and EU-28 member states. The long-run efficiency estimates show little or no variation and are in line with this contention that high (low) variation in convergence pre (post) the global financial crisis leads to more (less) convergence clubs. This is reflected in the differentiated banks classification and clustering observed during the different regimes.
