Impact of Disinflation on Profitability: A Data Envelopment Analysis Approach for Turkish Commercial Banks

摘要

Data Envelopment Analysis (DEA) analysis has been applied to the banking industry by a significant number of researchers. In this paper, the aim is to investigate the direct influence of inflation on banks' profitability. Doing so, the data of the period 1998-2003 when the inflation was relatively high is compared to the data of the period 2004-2008 when the inflation was higher. DEA's ability to evaluate several inputs and outputs at the same time and give efficiency scores to each decision making unit is used to evaluate banks' efficiencies. The results reveal which period is more profitable for commercial banks.