Skip to main content

Research Repository

Advanced Search

Productivity growth in network models: an application to banking during the financial crisis

Kourtzidis, Stavros A; Matousek, Roman; Tzeremes, Nickolaos G.


Stavros A Kourtzidis

Roman Matousek

Nickolaos G. Tzeremes


We construct Malmquist Productivity indices for two-stage processes. A two-stage data envelopment analysis model with an additive efficiency decomposition is used for the modeling of the two-stage process. We incorporate prior information into the analysis using the Weight Assurance Region model. This model offers advantages such as the weights representing the contribution of each stage to the overall process are always positive and we also can restrict them into a region given the available prior information. We extend this model from efficiency analysis to productivity analysis and we calculate Malmquist Productivity indices using four alternative decomposition approaches. The model is applied to a panel of banks in Central and Eastern European countries and productivity change is evaluated for three periods of the financial crisis. The alternative decompositions allow us to examine the various sources of productivity change during the financial crisis. Convergence patterns are also examined.


Kourtzidis, S. A., Matousek, R., & Tzeremes, N. G. (2018). Productivity growth in network models: an application to banking during the financial crisis. Journal of the Operational Research Society,

Journal Article Type Article
Acceptance Date Feb 18, 2017
Online Publication Date Feb 7, 2018
Publication Date Feb 7, 2018
Deposit Date Feb 11, 2019
Publicly Available Date Feb 11, 2019
Print ISSN 0160-5682
Electronic ISSN 1476-9360
Publisher Taylor & Francis
Peer Reviewed Peer Reviewed
Keywords Data envelopment analysis; two-stage; productivity growth; transition economies; banking efficiency
Public URL
Publisher URL


Downloadable Citations