On the Impact of Productive Efficiency and Quality of a Regulated Local Public Utility Upon Final Goods Prices and Consumer's Welfare
In this paper, we analyse the process by which the decisions of a regulated local public utility, in terms of productive efficiency and quality of the service provided, impact on prices of final consumption goods, supplied in a oligopolistic market operating in the sae geographic area. The regulation rules we consider are twofold: a Price-Cap mechanism and a Minimum Quality Standard constraing, both largely applied in the practice of public utilities regulation in industrialised countries. In particular in Italy these rules are applied in water and waste collection services. We obtain some formula for these effects which can be quantified by estimating firms' conditional input demand function of the public service and firms' inverse demand function for this public good, non-rival, component. Finally, we draw the effects of productive efficiency and quality on consumer welfare via changes on tariffs, external effects and final goods prices.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 68 (2009)
Issue (Month): 3 (July)
|Contact details of provider:|| Postal: |
Web page: http://www.gde.unibocconi.it/
|Order Information:|| Web: http://www.gde.unibocconi.it Email: |
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.:
- repec:cup:cbooks:9780521336017 is not listed on IDEAS
- Chen Lin & Sanford Berg, 2008. "Incorporating Service Quality into Yardstick Regulation: An Application to the Peru Water Sector," Review of Industrial Organization, Springer, vol. 32(1), pages 53-75, February.
- Creedy, John, 2000.
"Measuring Welfare Changes and the Excess Burden of Taxation,"
Bulletin of Economic Research,
Wiley Blackwell, vol. 52(1), pages 1-47, January.
- Creedy, J., 1997. "Measuring Welfare Changes and the Excess Burden of Taxation," Department of Economics - Working Papers Series 587, The University of Melbourne.
- Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2008.
"Distributional Effects of Price Reforms in the Italian Utility Markets,"
Institute for Fiscal Studies, vol. 29(1), pages 135-163, 03.
- Raffaele Miniaci & Carlo Scarpa & Paola Valbonesi, 2007. "Distributional effects of price reforms in the Italian utility markets," "Marco Fanno" Working Papers 0050, Dipartimento di Scienze Economiche "Marco Fanno".
- Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February.
- Mark Armstrong & Simon Cowan & John Vickers, 1994. "Regulatory Reform: Economic Analysis and British Experience," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510790, June.
- Graeme Guthrie, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Journal of Economic Literature, American Economic Association, vol. 44(4), pages 925-972, December.
- Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, June.
- Paul Makdissi & Quentin Wodon, 2001.
"Poverty-Reducing and Welfare-Improving Marginal Public Price and Price Cap Reforms,"
Cahiers de recherche
04-04, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke, revised 2004.
- Paul Makdissi & Quentin Wodon, 2007. "Poverty-Reducing and Welfare-Improving Marginal Public Price and Price Cap Reforms," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 9(4), pages 683-698, 08.
- Guthrie, Graeme, 2006. "Regulating Infrastructure: The Impact on Risk and Investment," Working Paper Series 3851, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
- Behrens, Kristian & Thisse, Jacques-Francois, 2007. "Regional economics: A new economic geography perspective," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 457-465, July.
- Bartle, Ian & Vass, Peter, 2007. "Independent economic regulation: A reassessment of its role in sustainable development," Utilities Policy, Elsevier, vol. 15(4), pages 261-269, December.
- Mark Armstrong & David Sappington, 2005.
"Regulation, Competition and Liberalization,"
0505011, EconWPA, revised 07 Oct 2005.
- Bennett, John & Iossa, Elisabetta, 2006.
"Building and managing facilities for public services,"
Journal of Public Economics,
Elsevier, vol. 90(10-11), pages 2143-2160, November.
- Bennett, John & Elisabetta Iossa, 2002. "Building and Managing Facilities for Public Services," Royal Economic Society Annual Conference 2002 22, Royal Economic Society.
- John Bennett & Elisabetta Iossa, 2004. "Building and Managing Facilities for Public Services," Public Policy Discussion Papers 02-08, Economics and Finance Section, School of Social Sciences, Brunel University.
- John Bennett & Elisabetta Iossa, 2002. "Building and Managing Facilities for Public Services," Economics and Finance Discussion Papers 02-08, Economics and Finance Section, School of Social Sciences, Brunel University.
- JOhn Bennett & Elisabetta Iossa, 2005. "Building and Managing Facilities for Public Services," The Centre for Market and Public Organisation 05/137, Department of Economics, University of Bristol, UK.
- David Sappington, 2005. "Regulating Service Quality: A Survey," Journal of Regulatory Economics, Springer, vol. 27(2), pages 123-154, November.
- Picazo-Tadeo, Andres J. & Saez-Fernandez, Francisco J. & Gonzalez-Gomez, Francisco, 2008. "Does service quality matter in measuring the performance of water utilities," Utilities Policy, Elsevier, vol. 16(1), pages 30-38, March.
- Kevin M. Currier, 2007. "Quality-Corrected Price Caps," Bulletin of Economic Research, Wiley Blackwell, vol. 59(3), pages 255-268, 07.
- Owen, Gill, 2006. "Sustainable development duties: New roles for UK economic regulators," Utilities Policy, Elsevier, vol. 14(3), pages 208-217, September.
When requesting a correction, please mention this item's handle: RePEc:gde:journl:gde_v68_n3_p311-339. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Erika Somma)
If references are entirely missing, you can add them using this form.