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Mathematical Problems in Engineering
Volume 2014 (2014), Article ID 793192, 14 pages
http://dx.doi.org/10.1155/2014/793192
Research Article

A Network DEA Model with Super Efficiency and Undesirable Outputs: An Application to Bank Efficiency in China

1School of Economics and Trade, Hunan University, Changsha 410079, China
2Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100090, China
3School of Economics and Management, Changsha University of Technology & Science, Changsha 410004, China

Received 19 December 2013; Accepted 24 February 2014; Published 15 April 2014

Academic Editor: Chuangxia Huang

Copyright © 2014 Jianhuan Huang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

There are two typical subprocesses in bank production—deposit generation and loan generation. Aiming to open the black box of input-output production of banks and provide comprehensive and accurate assessment on the efficiency of each stage, this paper proposes a two-stage network model with bad outputs and supper efficiency (US-NSBM). Empirical comparisons show that the US-NSBM may be promising and practical for taking the nonperforming loans into account and being able to rank all samples. Applying it to measure the efficiency of Chinese commercial banks from 2008 to 2012, this paper explores the characteristics of overall and divisional efficiency, as well as the determinants of them. Some interesting results are discovered. The polarization of efficiency occurs in the bank level and deposit generation, yet does not in the loan generation. Five hypotheses work as expected in the bank level, but not all of them are supported in the stage level. Our results extend and complement some earlier empirical publications in the bank level.