Benchmarking and Total Factor Productivity: A Luenberger Decomposition within the Banking Sector

Mircea Epure, Kristiaan Kerstens and Diego Prior

No 2008/03, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: This paper has a dual aim. First, it analyses the total factor productivity of the Spanish banking sub-sectors throughout an eight-year time span. Second, derived from the Färe et al. (1994) Malmquist decomposition, it proposes a Luenberger indicator adapted to benchmarking purposes. Hence, by means of an application where the base period is an established reference unit, the indicator offers two types of measures: (1) benchmarking (total factor productivity and frontier indicators), and (2) static efficiency (technical efficiency as the sum of pure technical efficiency, scale economies and input congestion). Results show that benchmarks for private and savings banks have inferior scores than the mean sample level, while the ones for credit cooperatives are roughly equal to the sample mean. Moreover, new technologies are important in the sector as changes over time are all-significant for frontier shifts. Statically, the technical efficiency components demonstrate good organizational practices together with consistency over time.

Keywords: Benchmarking; Luenberger decomposition; total factor productivity; banking sector (search for similar items in EconPapers)
Pages: 22
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.unioviedo.es/oeg/ESP/esp_2008_03.pdf (application/pdf)

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:oeg:wpaper:2008/03

Access Statistics for this paper

More papers in Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG) Departamento de Economía, Facultad de Economía y Empresa, Universidad de Oviedo, Avenida del Cristo, s/n. 33006 Oviedo - SPAIN. Contact information at EDIRC.
Bibliographic data for series maintained by Luis Orea (lorea@uniovi.es) and David Roibas (droibas@uniovi.es).