 How Fast Do Banks Adjust? A Dynamic Model of Labor-Use with an Application to Swedish BanksSubal Kumbhakar, Almas Heshmati () and Lennart Hjalmarsson No 411, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics Abstract: This 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 incorporate firm- and time-specific adjustment parameter. A flexible (translog) labor requirement function is used to represent the desired level of labor-use. It is specified as a function of a vector of outputs and other firm-specific variables. Labor-use inefficiency is defined as the ratio of actual to desired level of employment. Productivity growth is defined in terms of a shift in the labor requirement function. Swedish banking data is used as an application of the above model. Keywords: Productivity; Efficiency; Convergence; Labor-Use; Panel Data; Banking Industry (search for similar items in EconPapers) Published in Journal of Productivity Analysis, 2002, pages 79-102. There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0411 Access Statistics for this paper More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC. |
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