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Galán, J. E., Veiga, H. & Wiper, M. P. (2015). Dynamic effects in inefficiency: evidence from the Colombian banking sector. European Journal of Operational Research . 240 (2), 562-571
J. E. Galán et al., "Dynamic effects in inefficiency: evidence from the Colombian banking sector", in European Journal of Operational Research , vol. 240, no. 2, pp. 562-571, 2015
@article{galán2015_1734979197937, author = "Galán, J. E. and Veiga, H. and Wiper, M. P.", title = "Dynamic effects in inefficiency: evidence from the Colombian banking sector", journal = "European Journal of Operational Research ", year = "2015", volume = "240", number = "2", doi = "10.1016/j.ejor.2014.07.005", pages = "562-571", url = "http://www.sciencedirect.com/science/article/pii/S0377221714005566" }
TY - JOUR TI - Dynamic effects in inefficiency: evidence from the Colombian banking sector T2 - European Journal of Operational Research VL - 240 IS - 2 AU - Galán, J. E. AU - Veiga, H. AU - Wiper, M. P. PY - 2015 SP - 562-571 SN - 0377-2217 DO - 10.1016/j.ejor.2014.07.005 UR - http://www.sciencedirect.com/science/article/pii/S0377221714005566 AB - Firms face a continuous process of technological and environmental changes that requires them to make managerial decisions in a dynamic context. However, costs and constraints prevent firms from making instant adjustments towards optimal conditions and may cause inefficiency to persist in time. We propose a dynamic inefficiency specification that captures differences in the adjustment costs among firms and non-persistent effects of inefficiency heterogeneity. The model is fitted to a ten year sample of Colombian banks. The new specification improves model fit and have effects on efficiency estimations. Overall, Colombian banks present high inefficiency persistence but important differences between institutions are found. In particular, merged banks present low adjustment costs that allow them to recover rapidly efficiency losses derived from merging processes. ER -