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Author:Battese, G. E.
Heshmati, A.
Hjalmarsson, L.
Title:Efficiency of labour use in the Swedish banking industry: a stochastic frontier approach
Journal:Empirical Economics
2000 : VOL. 25:4, p. 623-640
Index terms:LABOUR DEMAND
BANKING
SWEDEN
DEREGULATION
Language:eng
Abstract:The purpose of this paper is to analyse the impact of the deregulation of the Swedish banking industry in the mid- 1980s, and the consequent banking crisis, on productive efficiency and productivity growth in the industry. An unbalanced panel of Swedish banks is studied over the period, 1984 to 1995. A total of 1275 observations are analysed for 156 banks that were observed for between two and twelve years. The authors adopt a translog stochastic frontier model to estimate the labour-use requirements in terms of the variables, loans, deposits, guarantees, number of branches and total inventories, together with the year of observation. The inefficiency effects in the labour-use frontier are modelled in terms of the number of branches, total inventories, the type of bank and year of observation.
SCIMA record nr: 224752
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