文摘
An evaluation of the effects of liberalization on bankers’ motivation and productivity is vital. The literature, so far, examines banking efficiency and productivity mainly through DEA. We model banks as profit cum welfare maximizing; derive bankers’ optimal effort and productivity. As a test case, we implement our model on Nepalese banks; find liberalization to be a success story. We provide a micro-founded common analytical framework and believe it will motivate future work.