A spatial productivity index in the presence of efficiency spillovers: Evidence for U.S. banks, 1992–2015

Anthony J. Glass and Karligash Kenjegalieva ()

European Journal of Operational Research, 2019, vol. 273, issue 3, 1165-1179

Abstract: We present the methodology for a new spatial decomposition of total factor productivity (TFP) growth. The relevant literature is underdeveloped as there is just one short study which proposes a partial spatial TFP growth decomposition. We develop this literature in four respects. The first two developments are methodological to go from a partial decomposition to a complete one. First, we augment the partial decomposition with a cost efficiency spillover growth component. Second, we introduce own and spillover allocative efficiency growth components. Third, we provide a more detailed coverage of the spatial decomposition of TFP growth. Fourth, in contrast to the traditional application to geographical areas (e.g., countries) in the relevant literature, we apply our decomposition using firm level data, which suggests that there can be an important role for spatial productivity analysis in OR. Our application is to large U.S. banks over the period 1992–2015. Among other things, we find for the average large U.S. bank that TFP growth since the financial crisis has become much more dependent on the bank itself and less so on spatial spillovers.

Keywords: (D) Productivity and competitiveness; Spatial total factor productivity; Productivity decomposition; Spatial cost and allocative efficiency growth; Large U.S. banks (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221718307574
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:273:y:2019:i:3:p:1165-1179

DOI: 10.1016/j.ejor.2018.09.011

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().