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The Economic Efficiency of Telecommunications in a Deregulated Market: The Case of New Zealand

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Author Info
de Boer, David Boles
Evans, Lewis

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Abstract

This paper estimates the productivity and consumer and producer changes in the New Zealand telecommunications network market between 1987, when it was deregulated, and 1993 as the major firm, Telecom, evolved from a government department to a public company in an environment of light regulation. The growth in productivity is estimated to reduced costs at an annual compound average of 5.6 percent. The bulk of the substantial gains in consumer surplus has come from price reductions on 1987 consumption levels. There has been marked improvements in the quality of outputs. Shareholders have had a profitable investment. Copyright 1996 by The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 72 (1996)
Issue (Month): 216 (March)
Pages: 24-35
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Handle: RePEc:bla:ecorec:v:72:y:1996:i:216:p:24-35

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  1. NZ Institute for the Study of Competition and Regulation Inc, 1999. "The Privatisation of New Zealand Rail," Treasury Working Paper Series 99/10, New Zealand Treasury. [Downloadable!]
  2. Abdul Ghafoor & Rizwana John Weiss, 1999. "Privatisation of Electric Power Sector in Pakistan: Some Important Issues," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(1), pages 69-84. [Downloadable!]
  3. Agustin J. Ros, 2003. "The Impact of the Regulatory Process and Price Cap Regulation in Latin American Telecommunications Markets," Review of Network Economics, Concept Economics, vol. 2(3), pages 270-286, September. [Downloadable!]
  4. Sang Lee, 2008. "Market liberalization and ownership status of incumbent telecom enterprises: global evidence from the telecom sector," Economics Bulletin, Economics Bulletin, vol. 12(30), pages 1-10. [Downloadable!]
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This page was last updated on 2009-11-28.

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