TY - JOUR
T1 - Malmquist indexes using a geometric distance function (GDF). Application to a sample of Portuguese bank branches
AU - Portela, Maria Conceição A.Silva
AU - Thanassoulis, Emmanuel
PY - 2006/4
Y1 - 2006/4
N2 - Traditional approaches to calculate total factor productivity (TFP) change through Malmquist indexes rely on distance functions. In this paper we show that the use of distance functions as a means to calculate TFP change may introduce some bias in the analysis, and therefore we propose a procedure that calculates TFP change through observed values only. Our total TFP change is then decomposed into efficiency change, technological change, and a residual effect. This decomposition makes use of a non-oriented measure in order to avoid problems associated with the traditional use of radial oriented measures, especially when variable returns to scale technologies are to be compared. The proposed approach is applied in this paper to a sample of Portuguese bank branches.
AB - Traditional approaches to calculate total factor productivity (TFP) change through Malmquist indexes rely on distance functions. In this paper we show that the use of distance functions as a means to calculate TFP change may introduce some bias in the analysis, and therefore we propose a procedure that calculates TFP change through observed values only. Our total TFP change is then decomposed into efficiency change, technological change, and a residual effect. This decomposition makes use of a non-oriented measure in order to avoid problems associated with the traditional use of radial oriented measures, especially when variable returns to scale technologies are to be compared. The proposed approach is applied in this paper to a sample of Portuguese bank branches.
KW - Bank branches
KW - Efficiency
KW - Malmquist indexes
UR - http://www.scopus.com/inward/record.url?scp=32944463764&partnerID=8YFLogxK
U2 - 10.1007/s11123-006-7124-z
DO - 10.1007/s11123-006-7124-z
M3 - Article
AN - SCOPUS:32944463764
SN - 0895-562X
VL - 25
SP - 25
EP - 41
JO - Journal of Productivity Analysis
JF - Journal of Productivity Analysis
IS - 1
ER -