| 英文摘要 |
This study employs the stochastic network model, first proposed by Huang, Lin, and Chen (2017), to compare the technical efficiency of financial holding banks (FHB) with non-financial holding banks (non-FHB) in Taiwan. The model allows banks to produce outputs through a two-stage process. Banks are assumed to hire fractional labor and capital to collect deposits at the first stage, which is viewed as an intermediate output. In the second stage, deposits and the remaining labor and capital inputs are used to produce final outputs, including investments, loans, and non-interest income. We extend the stochastic metafrontier approach, proposed by Huang, Huang, and Liu (2014), to estimate and compare the production efficiency under different technologies and two production stages. Compiling data for FHBs and non-FHBs in Taiwan spanning 2002–2017, we find that non-FHBs outperform FHBs in the first stage, while the reverse is true in the second stage. |
