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Application of Malmquist Index in Two-Stage DEA for Measurement of Productivity Growth

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  • Alinezhad , Alireza

    (Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University)

  • Nasiri Sadeghloo , Mohammad Javad

    (Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University)

Abstract

The purpose of this paper is to develop an output oriented methodology for calculating productivity growth by using Malmquist productivity index (MPI) and two different data envelopment analysis (DEA) views (optimistic and pessimistic) simultaneously, and apply it to five Iranian Commercial Banks over the four time period (2009-2013). Consequently, we have proposed a new approach called the double frontiers two-stage DEA or DFTDEA for simultaneous measurement of the MPI from both different DEA views. Furthermore, this paper has used two-stage DEA with reference to the variable return to scale technology (VRS) and applied a new viewpoint to measure the overall efficiency of the process.

Suggested Citation

  • Alinezhad , Alireza & Nasiri Sadeghloo , Mohammad Javad, 2016. "Application of Malmquist Index in Two-Stage DEA for Measurement of Productivity Growth," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 11(1), pages 31-51, January.
    • Handle: RePEc:mbr:jmonec:v:11:y:2016:i:1:p:31-51
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    Cited by:

    1. Yu He & Wenkuan Chen, 2023. "Evaluation of Sustainable Development Policy of Sichuan Citrus Industry in China Based on DEA–Malmquist Index and DID Model," Sustainability, MDPI, vol. 15(5), pages 1-23, February.

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    More about this item

    Keywords

    Two-stage DEA; Malmquist productivity index; Iranian Commercial Banks;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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