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

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  • DAVID BOLES DE BOER
  • LEWIS EVANS

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 per cent. 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.

Suggested Citation

  • David Boles De Boer & Lewis Evans, 1996. "The Economic Efficiency of Telecommunications in a Deregulated Market: The case of New Zealand," The Economic Record, The Economic Society of Australia, vol. 72(216), pages 24-35, March.
    • Handle: RePEc:bla:ecorec:v:72:y:1996:i:216:p:24-35
    DOI: 10.1111/j.1475-4932.1996.tb02606.x
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    References listed on IDEAS

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    1. Melvyn A. Fuss, 1994. "Productivity Growth in Canadian Telecommunications," Canadian Journal of Economics, Canadian Economics Association, vol. 27(2), pages 371-392, May.
    2. John W. Kendrick, 1973. "Postwar Productivity Trends in the United States, 1948–1969," NBER Books, National Bureau of Economic Research, Inc, number kend73-1, March.
    3. Megginson, William L & Nash, Robert C & van Randenborgh, Matthias, 1994. "The Financial and Operating Performance of Newly Privatized Firms: An International Empirical Analysis," Journal of Finance, American Finance Association, vol. 49(2), pages 403-452, June.
    4. John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
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