IDEAS home Printed from https://ideas.repec.org/a/kap/jproda/v44y2015i3p321-335.html
   My bibliography  Save this article

Metafrontier cost Malmquist productivity index: an application to Taiwanese and Chinese commercial banks

Author

Listed:
  • Mei-Ying Huang
  • Jia-Ching Juo
  • Tsu-tan Fu

Abstract

This study applies the data envelopment analysis approach and extends the group-specific cost Malmquist (CM) productivity index of Maniadakis and Thanassoulis (Eur J Oper Res 154:396–409, 2004 ) to define the meta CM productivity index under meta production technology. Parallel to the technology gap defined in the relationship between a group-specific adopted technology and its meta potential technology, we define a CM gap as the ratio of two CM productivity indices that measure the convergence of the group-specific cost frontier to the meta cost frontier and develop a further decomposition of the CM gap. To implement the decompositions of the CM index and CM gap, the research empirically examines panel data of 27 Taiwanese banks and 18 Chinese banks covering the period 2006–2009. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Mei-Ying Huang & Jia-Ching Juo & Tsu-tan Fu, 2015. "Metafrontier cost Malmquist productivity index: an application to Taiwanese and Chinese commercial banks," Journal of Productivity Analysis, Springer, vol. 44(3), pages 321-335, December.
    • Handle: RePEc:kap:jproda:v:44:y:2015:i:3:p:321-335
    DOI: 10.1007/s11123-014-0411-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11123-014-0411-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11123-014-0411-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yujiro Hayami, 1969. "Sources of Agricultural Productivity Gap Among Selected Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(3), pages 564-575.
    2. Aragon, Y. & Daouia, A. & Thomas-Agnan, C., 2005. "Nonparametric Frontier Estimation: A Conditional Quantile-Based Approach," Econometric Theory, Cambridge University Press, vol. 21(2), pages 358-389, April.
    3. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    4. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    5. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    6. Wheelock, David C. & Wilson, Paul W., 2008. "Non-parametric, unconditional quantile estimation for efficiency analysis with an application to Federal Reserve check processing operations," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 209-225, July.
    7. G Tohidi & S Razavyan & S Tohidnia, 2012. "A global cost Malmquist productivity index using data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(1), pages 72-78, January.
    8. Finn Førsund, 1998. "The Rise and Fall of Slacks: Comments on Quasi-Malmquist Productivity Indices," Journal of Productivity Analysis, Springer, vol. 10(1), pages 21-34, July.
    9. Wilson, Paul W, 1993. "Detecting Outliers in Deterministic Nonparametric Frontier Models with Multiple Outputs," Journal of Business & Economic Statistics, American Statistical Association, vol. 11(3), pages 319-323, July.
    10. George Battese & D. Rao & Christopher O'Donnell, 2004. "A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies," Journal of Productivity Analysis, Springer, vol. 21(1), pages 91-103, January.
    11. Daouia, Abdelaati & Simar, Leopold, 2007. "Nonparametric efficiency analysis: A multivariate conditional quantile approach," Journal of Econometrics, Elsevier, vol. 140(2), pages 375-400, October.
    12. Maniadakis, Nikolaos & Thanassoulis, Emmanuel, 2004. "A cost Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 154(2), pages 396-409, April.
    13. N/A, 2004. "Index for 2004," European Union Politics, , vol. 5(4), pages 511-512, December.
    14. Wheelock, David C. & Wilson, Paul W., 2013. "The evolution of cost-productivity and efficiency among US credit unions," Journal of Banking & Finance, Elsevier, vol. 37(1), pages 75-88.
    15. E. Grifell-Tatjé & C. Lovell & J. Pastor, 1998. "A Quasi-Malmquist Productivity Index," Journal of Productivity Analysis, Springer, vol. 10(1), pages 7-20, July.
    16. Ball, E. & Fare, R. & Grosskopf, S. & Zaim, O., 2005. "Accounting for externalities in the measurement of productivity growth: the Malmquist cost productivity measure," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 374-394, September.
    17. Hayami, Yujiro & Ruttan, Vernon W, 1970. "Agricultural Productivity Differences Among Countries," American Economic Review, American Economic Association, vol. 60(5), pages 895-911, December.
    18. Fare, Rolf & Grosskopf, Shawna, 1992. "Malmquist Productivity Indexes and Fisher Ideal Indexes," Economic Journal, Royal Economic Society, vol. 102(410), pages 158-160, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Walheer, Barnabé, 2018. "Disaggregation of the cost Malmquist productivity index with joint and output-specific inputs," Omega, Elsevier, vol. 75(C), pages 1-12.
    2. Xiang Chen, 2018. "An allocation productivity indicator: Application in Taiwanese banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(5), pages 1-2.
    3. Barnabé Walheer, 2022. "Global Malmquist and cost Malmquist indexes for group comparison," Journal of Productivity Analysis, Springer, vol. 58(1), pages 75-93, August.
    4. Ali Homayoni & Reza Fallahnejad & Farhad Hosseinzadeh Lotfi, 2022. "Cross Malmquist Productivity Index in Data Envelopment Analysis," 4OR, Springer, vol. 20(4), pages 567-602, December.
    5. Jin, Qianying & Kerstens, Kristiaan & Van de Woestyne, Ignace, 2020. "Metafrontier productivity indices: Questioning the common convexification strategy," European Journal of Operational Research, Elsevier, vol. 283(2), pages 737-747.
    6. Andriyani, Lilik & Usman, Nurodin & Pambuko, Zulfikar Bagus, 2020. "Antecedents of Social Funds Productivity of Islamic Banks in Indonesia," OSF Preprints 258jk, Center for Open Science.
    7. Barnabé Walheer, 2018. "Cost Malmquist productivity index: an output-specific approach for group comparison," Journal of Productivity Analysis, Springer, vol. 49(1), pages 79-94, February.
    8. Chen, Xiang & Grifell-Tatjé, Emili & Fu, Tsu-Tan, 2023. "A profit difference decomposition model for measuring group performance: an application to Chinese and Taiwanese commercial banks," Omega, Elsevier, vol. 120(C).
    9. Reza Fallahnejad & Mohammad Reza Mozaffari & Peter Fernandes Wanke & Yong Tan, 2024. "Nash Bargaining Game Enhanced Global Malmquist Productivity Index for Cross-Productivity Index," Games, MDPI, vol. 15(1), pages 1-21, January.
    10. Tsui‐Yueh Cho, 2020. "Cost metafrontier approach for measuring the Malmquist productivity index: An example of bank groups formed after the financial reform in Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 25(4), pages 475-494, October.
    11. Kerstens, Kristiaan & O’Donnell, Christopher & Van de Woestyne, Ignace, 2019. "Metatechnology frontier and convexity: A restatement," European Journal of Operational Research, Elsevier, vol. 275(2), pages 780-792.
    12. Alexandros Maziotis & Ramon Sala-Garrido & Manuel Mocholi-Arce & Maria Molinos-Senante, 2021. "Changes to The Productivity of Water Companies: Comparison of Fully Private and Concessionary Water Companies," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(10), pages 3355-3371, August.
    13. Yu, Ming-Miin, 2020. "Nerlovian profit inefficiency in non-fully-competitive settings: Definition and decomposition," Omega, Elsevier, vol. 90(C).
    14. Lin, Yu-Hui & Fu, Tsu-Tan & Chen, Chia-Li & Juo, Jia-Ching, 2017. "Non-radial cost Luenberger productivity indicator," European Journal of Operational Research, Elsevier, vol. 256(2), pages 629-639.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emrouznejad, Ali & Yang, Guo-liang, 2016. "CO2 emissions reduction of Chinese light manufacturing industries: A novel RAM-based global Malmquist–Luenberger productivity index," Energy Policy, Elsevier, vol. 96(C), pages 397-410.
    2. Xiang Chen, 2018. "An allocation productivity indicator: Application in Taiwanese banks," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 8(5), pages 1-2.
    3. Léopold Simar & Paul W. Wilson, 2015. "Statistical Approaches for Non-parametric Frontier Models: A Guided Tour," International Statistical Review, International Statistical Institute, vol. 83(1), pages 77-110, April.
    4. Tsui‐Yueh Cho, 2020. "Cost metafrontier approach for measuring the Malmquist productivity index: An example of bank groups formed after the financial reform in Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 25(4), pages 475-494, October.
    5. Lin, Yu-Hui & Fu, Tsu-Tan & Chen, Chia-Li & Juo, Jia-Ching, 2017. "Non-radial cost Luenberger productivity indicator," European Journal of Operational Research, Elsevier, vol. 256(2), pages 629-639.
    6. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    7. Mohsen Afsharian & Heinz Ahn, 2015. "The overall Malmquist index: a new approach for measuring productivity changes over time," Annals of Operations Research, Springer, vol. 226(1), pages 1-27, March.
    8. Atwood, Joseph & Shaik, Saleem, 2020. "Theory and statistical properties of Quantile Data Envelopment Analysis," European Journal of Operational Research, Elsevier, vol. 286(2), pages 649-661.
    9. Caitlin O’Loughlin & Léopold Simar & Paul W. Wilson, 2023. "Methodologies for assessing government efficiency," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 4, pages 72-101, Edward Elgar Publishing.
    10. Barnabé Walheer, 2018. "Cost Malmquist productivity index: an output-specific approach for group comparison," Journal of Productivity Analysis, Springer, vol. 49(1), pages 79-94, February.
    11. Hung-pin Lai & Cliff J. Huang & Tsu-Tan Fu, 2020. "Estimation of the production profile and metafrontier technology gap: a quantile approach," Empirical Economics, Springer, vol. 58(6), pages 2709-2731, June.
    12. Alexandros Maziotis & Ramon Sala-Garrido & Manuel Mocholi-Arce & Maria Molinos-Senante, 2021. "Changes to The Productivity of Water Companies: Comparison of Fully Private and Concessionary Water Companies," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(10), pages 3355-3371, August.
    13. Wheelock, David C. & Wilson, Paul W., 2013. "The evolution of cost-productivity and efficiency among US credit unions," Journal of Banking & Finance, Elsevier, vol. 37(1), pages 75-88.
    14. Wilson, Paul W., 2018. "Dimension reduction in nonparametric models of production," European Journal of Operational Research, Elsevier, vol. 267(1), pages 349-367.
    15. Carlucci, Fabio & Corcione, Carlo & Mazzocchi, Paolo & Trincone, Barbara, 2021. "The role of logistics in promoting Italian agribusiness: The Belt and Road Initiative case study," Land Use Policy, Elsevier, vol. 108(C).
    16. Bansal, Pooja & Kumar, Sunil & Mehra, Aparna & Gulati, Rachita, 2022. "Developing two dynamic Malmquist-Luenberger productivity indices: An illustrated application for assessing productivity performance of Indian banks," Omega, Elsevier, vol. 107(C).
    17. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    18. Tsui-Yueh Cho & Tsai-Yi Wang, 2018. "Estimations of cost metafrontier Malmquist productivity index: using international tourism hotels in Taiwan as an example," Empirical Economics, Springer, vol. 55(4), pages 1661-1694, December.
    19. Reza Fallahnejad & Mohammad Reza Mozaffari & Peter Fernandes Wanke & Yong Tan, 2024. "Nash Bargaining Game Enhanced Global Malmquist Productivity Index for Cross-Productivity Index," Games, MDPI, vol. 15(1), pages 1-21, January.
    20. Walheer, Barnabé, 2023. "Meta-frontier and technology switchers: A nonparametric approach," European Journal of Operational Research, Elsevier, vol. 305(1), pages 463-474.

    More about this item

    Keywords

    Metafrontier; Cost Malmquist productivity; Technical efficiency; Technology gap; Environmental variables; G21; C61; C63; C67;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jproda:v:44:y:2015:i:3:p:321-335. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.