Journal of Applied Finance & Banking

An allocation productivity indicator: Application in Taiwanese banks

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  • Abstract 

    This study applies the non-parametric approach and combine the the Luenberger productivity indicator and the allocative efficiency (Chamber et al., 1996) to develop an allocation Luenberger indicator. The allocation Luenberger indicator can be decomposed into the allocative efficiency change and the allocative technical change. We also investigate whether there is a relationship in the proposed allocation indicator, profit Luenberger indicator (Juo et al., 2015) and the Luenberger productivity indicator. For the empirical application, we use the 31 Taiwanese banks to measure profit Luenberger productivity indicator, Luenberger productivity indicator and allocation Luenberger indicator, and also compare these indicators and their components by the financial holding company and non-financial holding company.

    JEL classification numbers: G14D24G21
    Keywords: Data Envelopment Analysis; profit productivity; allocation Luenberger indicator; banks

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