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A spatial productivity index in the presence of efficiency spillovers: evidence for U.S. banks, 1992-2015
journal contribution
posted on 2018-09-17, 12:41 authored by Anthony Glass, Karligash GlassKarligash GlassWe 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 ResearchVolume
273Issue
3Pages
1165-1179Citation
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
© ElsevierVersion
- 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.2018.09.011Acceptance date
2018-09-04Publication date
2018-09-15Copyright date
2019ISSN
0377-2217Publisher version
Language
- en