Editor:
Universidad Carlos III de Madrid. Departamento de Estadística
Fecha de edición:
2013-06
Agradecimientos:
Financial support from the Spanish Ministry of
Education and Science, research projects ECO2012- 3401, MTM2010-17323, ECO2009-08100 and
SEJ2007-64500 is also gratefully acknowledged
Serie/Num.:
UC3M Working papers. Statistics and Econometrics 13-18
Proyecto:
Gobierno de España. ECO2012-3401 Gobierno de España. MTM2010-17323 Gobierno de España. ECO2009-08100 Gobierno de España. SEJ2007-64500
Derechos:
Atribución-NoComercial-SinDerivadas 3.0 España
Resumen:
Firms face a continuous process of technological and environmental changes that implies making managerial decisions in a dynamic context. However, costs and other constraints prevent firms from making instant adjustments towards optimal conditions and may causFirms face a continuous process of technological and environmental changes that implies making managerial decisions in a dynamic context. However, costs and other constraints prevent firms from making instant adjustments towards optimal conditions and may cause inefficiency to be persistent in time. In this work, we propose a flexible dynamic model that makes possible to distinguish persistent effects in the inefficiency from firm inefficiency heterogeneity and to capture differences in the adjustment costs between firms. The new model is fitted to a ten year sample of Colombian banks. Our findings suggest that firm characteristics associated to size and foreign ownership have negative effects on inefficiency and separating these heterogeneity factors from the dynamics of inefficiency improves model fit. On the other hand, acquisitions are found to have positive and persistent effects on inefficiency. Colombian banks are found to present high inefficiency persistence but there exist important differences between institutions. In particular, merged banks present low costs of adjustment that allow them to recover rapidly the efficiency losses derived from merging processes[+][-]