Productivity Growth in Network Models

An Application to Banking During the Financial Crisis

Stavros Kourtzidis, Roman Matousek (Lead / Corresponding author), Nickolaos Tzeremes

    Research output: Contribution to journalArticle

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    Abstract

    We construct Malmquist Productivity indices for two-stage processes. A two-stage data envelopment analysis model with an additive efficiency decomposition is used for the modeling of the two-stage process. We incorporate prior information into the analysis using the Weight Assurance Region model. This model offers advantages such as the weights representing the contribution of each stage to the overall process are always positive and we also can restrict them into a region given the available prior information. We extend this model from efficiency analysis to productivity analysis and we calculate Malmquist Productivity indices using four alternative decomposition approaches. The model is applied to a panel of banks in Central and Eastern European countries and productivity change is evaluated for three periods of the financial crisis. The alternative decompositions allow us to examine the various sources of productivity change during the financial crisis. Convergence patterns are also examined.
    Original languageEnglish
    Number of pages14
    JournalJournal of the Operational Research Society
    Early online date7 Feb 2018
    DOIs
    Publication statusE-pub ahead of print - 7 Feb 2018

    Fingerprint

    Productivity
    Decomposition
    Data envelopment analysis
    Financial crisis
    Network model
    Productivity growth
    Banking
    Prior information
    Malmquist productivity index
    Productivity change

    Keywords

    • Data envelopment analysis
    • two-stage
    • productivity growth
    • transition economies
    • banking efficiency

    Cite this

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    Productivity Growth in Network Models : An Application to Banking During the Financial Crisis. / Kourtzidis, Stavros; Matousek, Roman (Lead / Corresponding author); Tzeremes, Nickolaos.

    In: Journal of the Operational Research Society, 07.02.2018.

    Research output: Contribution to journalArticle

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