nonperforming loans as an undesirable output in the bank's production process. Since the stochastic DTDF describing banking … (DTDF) based formulation of banking technology which explicitly accommodates the presence of undesirable nonperforming loans … -- an inherent characteristic of the bank's production due to its exposure to credit risk. Specifically, we model …

Productivity and efficiency analyses have been indispensable tools for evaluating firms’ performance in the banking … illustrate our proposed approach and estimate the Returns to Scale, the Total Factor Productivity and the Technical Efficiency in … US commercial banking (1989-2000). Our approach provides very satisfactory results compared to the conventional model, a …

the traditional (desirable-output-oriented) technical productivity and the undesirable-output-oriented environmental, or … so-called "green", productivity. To measure the latter, we derive a Solow-type Divisia environmental productivity index … which, unlike conventional productivity indices, allows crediting the ceteris paribus reduction in undesirable outputs. Our …