The present study employs the state of the art bias-corrected Malmquist Productivity Index method to examine the sources of efficiency and productivity of the foreign and domestic banks operating in the Malaysian banking sector. The preferred methodology enables us to isolate efforts to catch up...

The factor X in the RPI-X regulation aims to adjust price or revenue allowances to changes in total factor productivity and input prices. A cost Malmquist index can be applied to determine the efficient cost change (ECC). However, regulators typically do not have the necessary data on input...

This paper proposes a transactions cost theory of total factor productivity. In a world with asymmetric information and transactions costs, effort, and thus productivity, must be induced by incentive schemes. Labor contracts trade off the marginal benefits and the marginal costs of effort. The...

This paper contributes to the productivity literature by using results from firm-level productivity studies to improve forecasts of macro-level productivity growth. The paper employs current research methods on estimating firm-level productivity to build times-series components that capture the...