An alternative conditioning scheme to explain efficiency differentials in banking

We investigate whether specialization, ownership type, or size, bias bank efficiency. The approach we apply—focusing on the entire distributions of efficiency scores—sheds light on the firmsʹ precise relative positions when controlling for these firmsʹ characteristics. Results suggest that conclusions related to this topic should consider these techniques, given efficiency scores generated by nonparametric techniques are clearly dependent on each other in the statistical sense.