How Fast Do Banks Adjust? A Dynamic Model of Labor-Use with an Application to Swedish Banks
AbstractThis paper deals with a dynamic adjustment process in which adjustment of a key variable input (labor) towards its desired level is modeled in a panel data context. The partial adjustment type model is extended to make the adjustment parameter both firm- and time-specific by specifying it as a function of firm- and time-specific variables. Desired level of labor use is represented by a labor requirement function, which is a function of outputs and other firm-specific variables. The catch-up factor is defined as the ratio of actual to desired level of employment. Productivity growth is then defined in terms of a shift in the desired level of labor use and the change in the catch-up factor. Swedish banking data is used as an application of the above model. Copyright Kluwer Academic Publishers 2002
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Bibliographic InfoArticle provided by Springer in its journal Journal of Productivity Analysis.
Volume (Year): 18 (2002)
Issue (Month): 1 (July)
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Web page: http://www.springerlink.com/link.asp?id=100296
productivity; efficiency; catch-up factor; labor-requirement frontier; panel data;
Other versions of this item:
- Kumbhakar, Subal C. & Heshmati, Almas & Hjalmarsson, Lennart, 2000. "How Fast Do Banks Adjust? A Dynamic Model of Labor-Use with an Application to Swedish Banks," Working Paper Series in Economics and Finance 411, Stockholm School of Economics, revised Nov 2001.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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- Jaan Masso & Almas Heshmati, 2003.
"The Optimality And Overuse Of Labour In Estonian Manufacturing Enterprises,"
University of Tartu - Faculty of Economics and Business Administration Working Paper Series
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- Heshmati, Almas & Haouas, Ilham, 2003. "The Effects of Union Wage-Settings on Firms’ Production Factor Decisions," IZA Discussion Papers 689, Institute for the Study of Labor (IZA).
- Lööf, Hans, 2003. "Dynamic Optimal Capital Structure and Technological Change," ZEW Discussion Papers 03-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Haouas, Ilham & Yagoubi, Mahmoud & Heshmati, Almas, 2002. "Labour-Use Efficiency in Tunisian Manufacturing Industries: A Flexible Adjustment Model," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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