Title: The master Malmquist index measurement using DEA-based weighted average efficiency

Authors: Mohsen Afsharian; Mohammadreza Alirezaee; Peter Reichling

Addresses: Faculty of Economics and Management, Otto-von-Guericke University Magdeburg, 39106 Magdeburg, Germany. ' School of Mathematics, Iran University of Science and Technology, 16846 Tehran, Iran. ' Faculty of Economics and Management, Otto-von-Guericke University Magdeburg, 39106 Magdeburg, Germany

Abstract: The Malmquist index, based on data envelopment analysis (DEA) models, is the prominent index for measuring the relative productivity change of decision-making units (DMUs) in multiple time periods. This study presents new insight into the Malmquist index for measuring the productivity change of a master unit (master-DMU) that encompasses a set of units, its sub-DMUs, in multiple time periods. This is achieved by providing a framework for measuring productivity changes at the master level for the master-DMU regarding productivity changes at the sub-level for all sub-DMUs. The suggested index is illustrated by means of a real-world example from banking.

Keywords: Malmquist DEA; data envelopment analysis; Sten Malmquist; productivity index; master Malmquist index; MMI; weighted average efficiency; relative change; productivity changes; DMU; decision making unit; multiple time periods; master unit; sub-levels; banking; central banks; Iran; data analysis techniques; data analysis strategies.

DOI: 10.1504/IJDATS.2012.045120

International Journal of Data Analysis Techniques and Strategies, 2012 Vol.4 No.1, pp.21 - 42

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 24 Jan 2012 *

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