Replication package for "The Flexible Reverse Approach for Decomposing Economic Inefficiency: With an Application to Taiwanese Banks"
Description
This package contains the files required for replicating the results reported in the paper “The Flexible Reverse Approach for Decomposing Economic Inefficiency: With an Application to Taiwanese Banks” coauthored with Jesús T Pastor, Juan Aparicio, and Javier Alcaraz and accepted for publication in June 2024 in Economic Modelling. The package contains: - A Word™ file describing the content of the accompanying Excel file, where the results of the example reported in Table 1 are replicated. The file includes basic instructions for running Excel’s Solver and the Visual Basic for Applications (VBA) macros that automate the optimization processes for all firms. - An Excel™ file consisting of four tabs. The first tab presents the data, while each successive tab includes the models and results for the weighted additive technical inefficiency (Model_1), profit inefficiency (Model_4), and the closest benchmarks maximizing profit (Model_5). The replication files correspond to the example used to illustrate the flexible reverse approach for measuring and decomposing profit inefficiency. The data on Taiwanese banks, collected and studied by Juo et al. (2015), were kindly provided by Prof. Tsu-Tan Fu. Since these data are not publicly available, readers interested in replicating the empirical application should contact the above authors. The spreadsheets can be easily modified to measure and decompose the profit inefficiency of any dataset of choice. Reference: Juo, J. C., Fu, T. T., Yu, M. M., & Lin, Y. H. (2015). Profit-oriented productivity change. Omega, 57, 176-187.
Files
Steps to reproduce
See the Word™ file with the replication instructions.