Measuring congestion with undesirable outputs in China’s banking industry

Authors

Guoliang YANG, Institutes of Science and Development, Chinese Academy of Sciences, Beijing 100190, China School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049, ChinaFollow

Document Type

Research-Article

Author

Xian-Tong Ren, Chen Jiang, Yuan Cui, Guo-Liang Yang, Jean-Michel Sahut

Journal Name

Review of Quantitative Finance and Accounting

Keywords

China’s banking industry, Congestion, Data envelopment analysis, Interval data, Undesirable output

Abstract

Congestion with undesirable outputs is known as the phenomenon where by overinvestment in inputs leads to a decrease in desirable outputs and an increase in undesirable outputs. This paper proposes a new method for measuring congestion which considers undesirable outputs and the joint weak disposability between desirable outputs and undesirable outputs, a consideration which has been neglected in previous congestion studies, based on data envelopment analysis. The method proposed herein is then applied to the case of China’s banking industry, revealing that the main cause of congestion in China’s banking industry is overinvestment in fixed inputs and number of employees. This paper also analyzes the congestion in different types of banks to help for further analysis and decision-making. © The Author, under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2024.

http://doi.org/10.1007/s11156-024-01380-3

Recommended Citation

YANG, Guoliang (2025) "Measuring congestion with undesirable outputs in China’s banking industry," Double Helix Methodology: Vol. 6: Iss. 3, Article 7.
Available at: https://diis-mips.researchcommons.org/helix-content/vol6/iss3/7