Modelling a multi-period production process: Evidence from the Japanese regional banks

Stavros Kourtzidis, Roman Matousek and Nickolaos G. Tzeremes

European Journal of Operational Research, 2021, vol. 294, issue 1, 327-339

Abstract: This paper applies the additive relational network DEA model to examine the multi-period efficiency and productivity of Regional Banks I and II in Japan between 2002 and 2017. The examined timeframe covers two turbulent periods; the Global Financial Crisis and the economic recession in the aftermath of the Great East Japan Earthquake. We extend the additive relational network DEA model into a multi-period structure in order to evaluate the overall efficiency for the time period in question, as well as the annual period efficiencies. We show that the overall efficiency can be expressed as a weighted average of the period efficiencies. In addition, we examine the implications of different returns to scale assumptions. The newly proposed model is able to calculate common-weight Malmquist Productivity Indices. The results reveal a dispersion of inefficiency levels for Japanese Regional Banks in general, and a difference between Regional Banks I and II in particular. Furthermore, the Global Financial Crisis caused a significant negative effect on the productivity growth and the technical progress of Japanese Regional Banks, while the Great East Japan Earthquake had a negative effect on the technical efficiency change.

Keywords: Data envelopment analysis; Japanese banks; Network DEA; Productivity growth (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:294:y:2021:i:1:p:327-339

DOI: 10.1016/j.ejor.2021.01.036

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