North Dakota Banking Efficiency: A DEA Application to Agricultural and Non-Agricultural Banks Pre- and Post-Financial Crisis 2002-2012
Abstract
The Great Recession of the late 2000s had negative impacts across the United States economies with unemployment rates rising, bank failures, and other numerous economic problems. However, North Dakota was able to fend off the effects of the Great Recession by relying on their agricultural and energy industries during this time. North Dakota banks were able to avoid failure like many other banks in the nation during the recession. Empirical results of data envelopment analysis efficiency measurement shows that banks in North Dakota were able to increase efficiency from Q4:2002 to Q4:2012 without the recession have negative impacts on efficiency. Non-agricultural banks were more efficient in their production process when compared to agricultural banks.