Productivity Change in Multi-year Periods

Index number theory interprets the task of measuring productivity change as examining changes between two one-year periods (or other partial time instances). Nonetheless, in practice there arises a need to assess how productivity fared between two periods consisting of several years (or several partial time instances) and what drove its change. The paper focuses on such situations and has two interlinked goals. On the one hand, the paper formulates a methodology for measuring productivity change based on the Hicks-Moorsteen index and on the decomposition into basic determinants after Diewert and Fox. On the other hand, it demonstrates its usability in investigations of trends in productivity of the Slovak banking sector in the area of financial intermediation between the period 2005-2008 and the period 2009-2016. The results point to an improvement in financial intermediation productivity for most banks and an sector-wide upward shift in the production possibility frontier

Decomposition · Economics · Financial intermediary · Index (typography) · Intermediation · Macroeconomics · Production (economics) · Production–possibility frontier · Productivity · Technological change · Computer Science · Efficiency Analysis Using DEA

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