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Efficiency measurement and regulation in US telecommunications: A robustness analysis

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  • Resende, Marcelo

Abstract

The paper investigates the robustness of different efficiency measures that can support the implementation of diverse forms of incentive regulation in the context of US telecommunications. Comparisons, in terms of an output orientation, are considered for efficiency scores obtained from data envelopment analysis (DEA), distance function (with corrected ordinary least squares and a random effects model) and distance function embedded in a stochastic frontier framework (with time-invariant, time-varying efficiencies or with inefficiency effects). Similar to the previous empirical literature, one finds, in most cases, only a moderate consistency across the different approaches. In fact, the different spectrum of techniques imposed varied degrees of structure in the error term and indicated non-negligible discrepancies across the different measurement approaches in terms of the ranking structure, degree of persistence and best- and worst-practice patterns.

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Bibliographic Info

Article provided by Elsevier in its journal International Journal of Production Economics.

Volume (Year): 114 (2008)
Issue (Month): 1 (July)
Pages: 205-218

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Handle: RePEc:eee:proeco:v:114:y:2008:i:1:p:205-218

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Web page: http://www.elsevier.com/locate/ijpe

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  16. Tupper, Henrique Cesar & Resende, Marcelo, 2004. "Efficiency and regulatory issues in the Brazilian water and sewage sector: an empirical study," Utilities Policy, Elsevier, vol. 12(1), pages 29-40, March.
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Cited by:
  1. Bottasso, Anna & Conti, Maurizio & Piacenz, Massimiliano & Vannoni, Davide, 2011. "The appropriateness of the poolability assumption for multiproduct technologies: Evidence from the English water and sewerage utilities," International Journal of Production Economics, Elsevier, vol. 130(1), pages 112-117, March.
  2. Mancuso, Paolo, 2012. "Regulation and efficiency in transition: The case of telecommunications in Italy," International Journal of Production Economics, Elsevier, vol. 135(2), pages 762-770.
  3. Hammond, Christopher J., 2009. "The effect of organisational change on UK public library efficiency," International Journal of Production Economics, Elsevier, vol. 121(1), pages 286-295, September.
  4. Po-Chi Chen & Ching-Cheng Chang & Chih-Li Lai, 2014. "Incentive regulation and performance measurement of Taiwan’s incineration plants: an application of the four-stage DEA method," Journal of Productivity Analysis, Springer, vol. 41(2), pages 277-290, April.

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