The effects of subsidies on the cost structure of Japanese water supply organizations
AbstractThe purpose of this study is to identify the effects of subsidies on the cost structure of Japanese water supply organizations by estimating the translog cost function. Geographical conditions, such as network density and water sources, are also controlled in this model. The empirical results indicate that low network density, lack of own water sources and increasing subsidies lead to higher costs. It has also been found that subsidies have caused wasteful use of labor, capital and other input factors, and have diminished scale economies.
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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p260.
Date of creation: Aug 2004
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-09 (All new papers)
- NEP-EFF-2005-11-09 (Efficiency & Productivity)
- NEP-SEA-2005-11-09 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer, vol. 80(2), pages 211-230.
- Kim, Moshe & Spiegel, Menahem, 1987. "The effects of lump-sum subsidies on the structure of production and productivity in regulated industries," Journal of Public Economics, Elsevier, vol. 34(1), pages 105-119, October.
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