A Note on Productivity Change in European Co-operative Banks: The Luenberger Indicator Approach



Table 2: Descriptive Statistics: ECU million (inflation-adjusted); 1996-2003

_____________________________Inputs_____________________

______Outputs___________________

Country

Statistic

Fixed

Assets

Variable
Cost

Customer

Loans_____

Interbank

Loans

Securities

OBS

AUS

Average

29.66

126.12

1,207.18

792.73

409.23

162.86

Std dev

61.12

331.73

2,926.01

2,229.60

1,037.32

393.33

BEL

Average

17.56

187.17

1,251.08

1,301.09

1,273.23

1,060.28

Std dev

47.07

524.42

2,872.97

3,851.44

3,751.96

3,533.41

FIN

Average

614.55

1,294.99

20,678.66

895.56

5,103.35

3,694.88

Std dev

121.83

109.02

3,571.04

583.89

558.41

919.64

FRA

Average

139.32

1,204.28

8,787.42

5,578.85

5,883.21

4,869.44

Std dev

526.14

4,451.62

32,984.55

26,360.68

26,782.04

20,284.89

GER

Average

13.28

41.69

400.26

193.02

195.43

70.81

Std dev

173.17

431.30

3,461.31

3,034.14

2,455.10

1,035.72

ITA

Average

16.83

52.97

541.03

135.10

192.16

167.89

Std dev

83.46

246.52

2,807.71

695.52

792.65

959.21

LUX

Average

11.66

61.46

618.46

638.69

132.97

121.13

Std dev

11.32

56.25

602.09

524.69

192.23

108.81

NL

Average

3,010.26

14,498.44

152,577.43

27,475.78

62,028.50

29,882.20

Std dev

1,520.75

7,903.83

85,253.20

16,004.37

37,666.80

16,430.58

PTE

Average

142.32

273.17

2,907.49

533.66

682.77

276.54

Std dev

105.03

202.59

2,272.23

346.29

516.51

325.89

SPA

Average

45.32

98.45

1,259.81

499.69

360.69

175.63

Std dev

65.58

99.86

1,742.15

910.18

549.42

210.31

The aggregate Luenberger productivity indicators are calculated using linear
programming techniques. The results are presented in Table 3, with the productivity
indicators (AL) decomposed into its constituents: technical efficiency change (the diffusion or
catch-up component - EFFCH); and technological change (the innovation or frontier-shift
component - TECH). EFFCH represents the diffusion of best-practice technology in the
management of banking activities and it is attributable to investment planning, technical
experience, and management and organization. TECH results from innovations and the
adoption of new technologies by best-practice banks in each country.

From Table 3, we observe the productivity change score (AL) is positive for European
co-operative banks across all countries; all banking sectors experienced productivity gains
between 1996 and 2003. The mean is distorted by the result for Portugal; omitting the
Portuguese score yields a mean productivity score of 0.2073 that is bettered by the co-
operative banking sectors in Italy, Spain, Finland and France, and which is consistent with the



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