Malmquist Productivity Index for Two-stage Structures and its Applications in Bank ‎Branches

Document Type : Research Paper


Faculty of Management‎, ‎UAE branch‎, ‎Islamic Azad University‎, ‎Dubai‎, ‎UAE


This study uses the data envelopment analysis (DEA) to assess the progress/regression of decision-making units (DMUs) having a two-stage structure‎. ‎The progress/regression of these DMU can be assessed in the first stage‎, ‎the second stage‎, ‎and the whole system‎. ‎In the first stage‎, ‎the progress/regression of bank branches in collecting resources and in the second stage their progress/regression in allocating the resources as well as gaining profit are calculated‎, ‎and the combination of both types of data is ultimately analyzed‎. The progress/regression is calculated using two separate indices‎: ‎the The Malmquist indexand the Meta-Malmquist index‎. ‎This study applied the proposed models to 20 branches of a commercial bank with two-stage structure‎. ‎The obtained results were analyzed using ‎GAMS.