Francesc Trillas () (Institut d'Economia de Barcelona (IEB); Universitat Autònoma de Barcelona (UAB)) Daniel Montolio () (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB)) Néstor Duch () (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))
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Measuring productive efficiency provides information on the likely effects of regulatory reform. We present a Data Envelopment Analysis (DEA) of a sample of 38 vehicle inspection units under a concession regime, between the years 2000 and 2004. The differences in efficiency scores show the potential technical efficiency benefit of introducing some form of incentive regulation or of progressing towards liberalization. We also compute scale efficiency scores, showing that only units in territories with very low population density operate at a sub-optimal scale. Our results suggest that the introduction of new units in the most densely populated territories (a likely effect of some form of liberalization) would not be detrimental in terms of scale efficiency. We also find economies of scale or scope at the firm level. Finally, we show that between 2002 and 2004, a period of high regulatory uncertainty in the sample?s region, technical change was almost zero. Regulatory reform should take due account of scale and diversification effects, while at the same time avoiding regulatory uncertainty.
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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number
2006/3.
Find related papers by JEL classification: C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies
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Anna Matas Prats & José Luís Raymond Bara & José Luís Raymond Bara, 2008.
"Job accessibility and employment probability,"
Working Papers
XREAP2008-5, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2008.
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