The issue of input/output slacks in validating data envelopment analysis-based Malmquist productivity index: An example from banking

International Journal of Mathematics in Operational Research

Volumn 2, Issue 3, 2010, Pages 302-319

  Dharmapala, Parakramaweera Sunil ^a  

^a SULTAN QABOOS UNIVERSITY   (Oman)

Author keywords

Banking; Data envelopment analysis; DEA; IAR; Intrinsic assurance regions; Malmquist index; Productivity change

Indexed keywords

EID: 84861310454     PISSN: 17575850     EISSN: 17575869     Source Type: Journal    
DOI: 10.1504/IJMOR.2010.032720     Document Type: Article

References (39)

1. Al-Muharrami, S. (2007)'The causes of productivity change in GCC banking industry', Int. J. Productivity and Performance Management, Vol. 56, No. 8, pp.731-743.
2. Berg, S.A., Førsund, F.R. and Jansen, E.S. (1992) 'Malmquist indices of productivity growth during the deregulation of Norwegian banking', Scandinavian Journal of Economics, Vol. 94, pp.211-228.
3. Camanho, A.S. and Dyson, R.G. (2006) 'Data envelopment analysis and Malmquist indices for measuring group performance', Journal of Productivity Analysis, Vol. 26, No. 1, pp.35-49. (Pubitemid 44222566)
4. Caves, D.W., Christensen, L.R. and Diewert, W.E. (1982) 'The economic theory of index numbers and the measurement of input output productivity', Econometrica, Vol. 50, pp.1393-1414.
5. Casu, B., Girardone, C. and Molyneux, P. (2004) 'Productivity change in European banking: acomparison of parametric and non-parametric approaches', Journal of Banking and Finance, Vol. 28, pp.2521-2540. (Pubitemid 39216369)
6. Chang, H., Choy, H.L., Cooper, W.W. and Ruefli, T.W. (2009) 'Using Malmquist indexes to measure changes in the productivity and efficiency of US accounting firms before and after the Sarbanes-Oxley Act', Omega, Vol. 37, No. 5, pp.951-960.
7. Charnes, A., Cooper, W.W. and Rhodes, E. (1978) 'Measuring efficiency of decision making units', European Journal of Operational Research, Vol. 2, pp.429-444. (Pubitemid 9402758)
8. Chang, D.S., Kuo, Y.C. and Chen, T.Y. (2008) 'Productivity measurement of the manufacturing process for outsourcing decisions: the case of a Taiwanese printed circuit board manufacturer', Int. J. Production Research, Vol. 46, No. 24, pp.6981-6995.
9. Chen, Y. and Ali, A.I. (2004) 'DEA Malmquist productivity measure: new insights with an application to computer industry', European Journal of Operational Research, Vol. 159, pp.239-249.
10. Cummins, J.D. and Xie, X. (2008) 'Mergers and acquisitions in the US property-liability insurance industry: productivity and efficiency effects', Journal of Banking and Finance, Vol. 32, No. 1, pp.30-55.
11. Farrell, M.J. (1957) 'The measurement of productive efficiency', Journal of the Royal Statistical Society, Series A: General, Vol. 120, No. 3, pp.253-281.
12. Färe, R. and Lovell, C.A.K. (1978) 'Measuring the technical efficiency of production', Journal of Economic Theory, Vol. 19, pp.150-162.
13. Färe, R., Grosskopf, S., Lindgren, B. and Roos, P. (1992a) 'Productivity changes in Swedish pharmacies 1980-1989: a nonparametric Malmquist approach', Journal of Productivity Analysis, vol. 3, No. 3, pp.85-101
14. Färe, R., Grosskopf, S., Lindgren, B. and Roos, P. (1992b) 'Productivity developments in Swedish hospitals: a Malmquist output index approach', In A. Charnes, W.W. Cooper, A.Y. Lewin and L.M. Seiford (Eds.), Data Envelopment Analysis: Theory, Methodology and Applications, Massachusetts: Kluwer Academic Publishers, pp.253-272.
15. Färe, R., Grosskopf, S., Norris, M., Zhang, Z. (1994) 'Productivity growth, technical progress, and efficiency change in industrialized countries,' The American Economic Review, Vol. 84, No. 1, pp.67-83.
16. Fu, F.C., Vijverberg, C.P.C. and Chen, Y.S. (2008) 'Productivity and efficiency of state-owned enterprises in China', Journal of Productivity Analysis, Vol. 29, No. 3, pp.249-259.
17. Fulginiti, L.E. and Perrin, R.K. (1997) 'LDC agriculture: non-parametric Malmquist productivity indexes', Journal of Development Economics, Vol. 53, No. 2, pp.373-390.
18. Gannon, B. (2008) 'Total factor productivity growth of hospitals in Ireland: a nonparametric approach', Applied Economics Letters, Vol. 15, No. 2, pp.131-135. (Pubitemid 350201352)
19. Grifell-Tatjé, E. and Lovell, C.A.K. (1996) 'Deregulation and productivity decline: the case of Spanish savings banks', European Economic Review, Vol. 40, No. 6, pp.1281-1303.
20. Grifell-Tatjé, E., Lovell, C.A.K. and Pastor, J.T. (1998) 'A quasi-Malmquist productivity index', Journal of Productivity Analysis, Vol. 10, No. 1, pp.7-20.
21. Iturralde, M.J. and Quirös, C. (2008) 'Analysis of efficiency of the European postal sector', Int. J. Production Economics, Vol. 114, No. 1, pp.84-90.
22. Leightner, E. and Lovell, C.A.K. (1998) 'The impact of financial liberalization on the performance of Thai banks', Journal of Economics and Business, Vol. 50, No. 2, pp.115-131.
23. Liu, F.H.F. and Wang, P.H. (2008) 'DEA Malmquist productivity measure: Taiwanese semiconductor companies', Int. J. Production Economics, Vol. 112, No. 1, pp.367-379.
24. Madden, G. and Savage, S.J. (1999) 'Telecommunications productivity, catch-up and innovation', Telecommunications Policy, Vol. 23, No. 1, pp.65-81.
25. Malmquist, S. (1953) 'Index numbers and indifference surfaces', Trabajos de Estatistica, Vol. 4, pp.209-242.
26. Maudos, J., Pastor, J.M. and Serrano, L. (1999) 'Total factor productivity measurements and human capital in OECD countries', Economic Letters, Vol. 54, No. 1, pp.93-100.
27. Newman, C. and Matthews, A. (2006) 'The productivity performance of Irish dairy farms 1984-2000: a multiple output distance function approach', Journal of Productivity Analysis, Vol. 26, No. 2, pp.191-205.
28. Odeck, J. (2000) 'Assessing the relative efficiency and productivity growth of vehicle inspection services: an application of DEA and Malmquist indices', European Journal of Operational Research, Vol. 126, pp.501-514.
29. Odeck, J. (2008) 'The effect of mergers on efficiency and productivity of public transport services', Transportation Research Part A: Policy and Practice, Vol. 42, No. 4, pp.696-708.
30. Odeck, J. (2009) 'Statistical precision of DEA and Malmquist indices: a bootstrap application to Norwegian grain producers', Omega, Vol. 37, No. 5, pp.1007-1017.
31. Pastor, J.T. and Lovell, C.A.K. (2005) 'A global Malmquist productivity index', Economics Letters, Vol. 88, pp.266-271. (Pubitemid 40829454)
32. Pilyavsky, A. and Staat, M. (2008) 'Efficiency and productivity change in Ukrainian health care', Journal of Productivity Analysis, Vol. 29, No. 2, pp.143-154.
33. Prior, D. (2006) 'Efficiency and total quality management in health care organizations: a dynamic frontier approach', Annals of Operations Research, Vol. 145, No. 1, pp.281-299. (Pubitemid 44286431)
34. Shephard, R.W. (1970) Theory of Cost and Production Functions. Princeton, NJ: Princeton University Press.
35. Thompson, R.G., Dharmapala, P.S., Rothenberg, L.J. and Thrall, R.M. (1994) 'DEA ARs and CRs applied to worldwide major oil companies', Journal of Productivity Analysis, Vol. 5, pp.181-203.
36. Thrall, R.M. (1996) 'Duality, classification and slacks in DEA', Annals of Operations Research, Vol. 66, pp.109-138.
37. Tortosa-Ausina, E., Grifell-Tatjé, E., Armero, C. and Conesa, D. (2008) 'Sensitivity analysis of efficiency and Malmquist productivity indices: an application to Spanish savings banks', European Journal of Operational Research, Vol. 184, No. 3, pp.1062-1084. (Pubitemid 47393692)
38. Wu, D.D. and Ho, C.T.B. (2007) 'Productivity and efficiency analysis of Taiwan's integrated circuit industry', Int. J. Productivity and Performance Management, Vol. 56, No. 8, pp.715-730.
39. Xue, X., Shen, Q., Wang, Y. and Lu, J. (2008) 'Measuring the productivity of the construction industry in China by using DEA-based malmquist productivity indices', Journal of Construction Engineering and Management, Vol. 134, No. 1, pp.64-71. (Pubitemid 350265379)