AEC_Revised_1082_Delete.pdf (585.27 kB)
0/0

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

Download (585.27 kB)
journal contribution
posted on 17.09.2018 by Anthony Glass, Karligash Glass
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.

History

School

  • Business and Economics

Department

  • Economics

Published in

European Journal of Operational Research

Volume

273

Issue

3

Pages

1165-1179

Citation

GLASS, A.J. and KENJEGALIEVA, K., 2018. A spatial productivity index in the presence of efficiency spillovers: evidence for U.S. banks, 1992-2015. European Journal of Operational Research, 273 (3), pp.1165-1179.

Publisher

© Elsevier

Version

AM (Accepted Manuscript)

Publisher statement

This paper was accepted for publication in the journal European Journal of Operational Research and the definitive published version is available at https://doi.org/10.1016/j.ejor.2018.09.011

Acceptance date

04/09/2018

Publication date

2018-09-15

Copyright date

2019

ISSN

0377-2217

Language

en

Exports