RT Generic
T1 Bayesian analysis of dynamic effects in inefficiency : evidence from the Colombian banking sector
A1 Galán Camacho, Jorge Eduardo
A1 Lopes Moreira Da Veiga, María Helena
A1 Wiper, Michael Peter
A2 Universidad Carlos III de Madrid. Departamento de Estadística, 
AB 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 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
YR 2013
FD 2013-06
LK https://hdl.handle.net/10016/17275
UL https://hdl.handle.net/10016/17275
LA eng
NO Financial support from the Spanish Ministry ofEducation and Science, research projects ECO2012- 3401, MTM2010-17323, ECO2009-08100 andSEJ2007-64500 is also gratefully acknowledged
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RD 3 may. 2024