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On the Assessment of Regulators' Efficiency. An Application to European Telecommunications

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Author Info
Paolo Lupi () (Servizio Analisi di Mercato e Concorrenza, Autorità per le Garanzie nelle Comunicazioni (ITALY))
Fabio M. Manenti () (Universita' di Padova)
Antonio Scialà (Università di Padova)
Cristiano Varin () (Università di Venezia)

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Abstract

This paper offers a methodology to assess the internal productive efficiency of National Regulatory Authorities (NRAs) based on the performances of regulated markets, measured in terms of the degree of market efficiency (either static or dynamic). The estimation procedure is based on a Data Envelopment Analysis (DEA), along with a smoothed bootstrap method and it is applied to telecommunications sector across 18 European countries, 5 of which are new accession countries, in 2005. After the discussion of several desirable outcomes for a telecom regulator, we construct an ad hoc database containing information about NRAs regulatory inputs and outputs. We run three bootstrapped DEAs in order to rank NRAs according to their efficiency in carrying out their regulatory activities. We find the NRAs in 2004 accession countries are more efficient in pursuing dynamic efficiency goals than the more experienced NRAs, while they perform generally worse when the regulatory outcomes are measured in terms of retail efficiency.

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Publisher Info
Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0098.

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Length: 26 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:pad:wpaper:0098

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Related research
Keywords: regulators efficiency; Data Envelopment analysis; bootstrapping; telecommunications;

Find related papers by JEL classification:
L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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References listed on IDEAS
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  1. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-41, June. [Downloadable!] (restricted)
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  2. Antonio Afonso & Carla Scaglioni, 2006. "An Assessment of Telecommunications Regulation Performance in the European Union," Working Papers 2006/07, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
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This page was last updated on 2009-11-26.


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