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Efficiency Estimation Using The Simulated Maximum Likelihood Approach: The Case Of Polish Cooperative Banks

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  • Khitarishvili, Tamar

Abstract

The paper lays out a framework for studying firm efficiency using the Method of Simulated Likelihood. I develop the model using the assumption of gamma distributed inefficiency terms and apply it to the case of Polish cooperative banks. I derive preliminary results for the estimates of average and individual inefficiencies. Finally, I discuss the practical difficulties connected with this estimation method and suggest avenues for future research.

Suggested Citation

  • Khitarishvili, Tamar, 2002. "Efficiency Estimation Using The Simulated Maximum Likelihood Approach: The Case Of Polish Cooperative Banks," 2002 Annual meeting, July 28-31, Long Beach, CA 19749, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19749
    DOI: 10.22004/ag.econ.19749
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    Keywords

    Financial Economics;

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