Profit-oriented productivity change |
| |
Institution: | 1. Buckingham Business School, University of Buckingham, Buckingham MK18 1EG, United Kingdom;2. Center of Operations Research (CIO), University Miguel Hernandez of Elche, Elche (Alicante), Spain;3. Foisie Business School, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA, USA;1. Faculty of Economics, Administrative and Social Sciences, TED University, Ziya Gökalp Caddesi No. 48, 06420 Kolej, Çankaya, Ankara Turkey;2. École Nationale Supérieure des Mines, CNRS UMR6158, LIMOS, F-42023 Saint-Etienne, France;3. École Nationale Supérieure des Mines, CNRS UMR6597, IRCCYN, F-44307 Nantes Cedex 3, France |
| |
Abstract: | This study develops an applicable profit-oriented productivity indicator when producers pursue profit maximization and can recognize input and output prices. We define the indicator, inspired by the Luenberger indicator and the Nerlovian efficiency measurement, in terms of both quantity distance functions and profit. Hence, the study?s first stage decomposes the profit-oriented productivity change into two terms: profit efficiency change and profit technology change. Second, we decompose profit efficiency change into the changes in technical efficiency and allocative efficiency. Finally, profit technology change is separated into two components for capturing the shifts of technology and relative output/input prices. These decompositions provide a more complete picture of the sources of productivity change. We illustrate them with a sample of Taiwanese banks and compute the results using the models of directional distance functions. |
| |
Keywords: | Data envelopment analysis (DEA) Directional distance function Nerlovian Profit Productivity change Lunberger indicator |
本文献已被 ScienceDirect 等数据库收录! |
|