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Regulatory Regimes and Efficiency in US Local Telephony


  • Resende, Marcelo


The paper assesses the efficiency consequences of different regulatory regimes for US local telephony. Specifically, alternative regulatory regimens (price-cap regulation and incentive regulation) are contrasted with traditional rate-of-return regulation (ROR). Relative efficiency scores are obtained from the Data Envelopment Analysis (DEA) approach. The regression analysis on the determinants of efficiency, after controlling for technical change effects, indicates that alternative forms of regulation appear to induce a higher level of efficiency for the regulated firms than ROR. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Resende, Marcelo, 2000. "Regulatory Regimes and Efficiency in US Local Telephony," Oxford Economic Papers, Oxford University Press, vol. 52(3), pages 447-470, July.
  • Handle: RePEc:oup:oxecpp:v:52:y:2000:i:3:p:447-70

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    References listed on IDEAS

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    5. Olli Tahvonen, 1997. "Fossil Fuels, Stock Externalities, and Backstop Technology," Canadian Journal of Economics, Canadian Economics Association, vol. 30(4), pages 855-874, November.
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    Cited by:

    1. Resende, Marcelo, 2008. "Efficiency measurement and regulation in US telecommunications: A robustness analysis," International Journal of Production Economics, Elsevier, vol. 114(1), pages 205-218, July.
    2. Resende, Marcelo & Otavio Facanha, Luis, 2005. "Price-cap regulation and service-quality in telecommunications: an empirical study," Information Economics and Policy, Elsevier, vol. 17(1), pages 1-12, January.
    3. Moreno, Plácido & Lozano, Sebastián & Gutiérrez, Ester, 2013. "Dynamic performance analysis of U.S. wireline telecommunication companies," Telecommunications Policy, Elsevier, vol. 37(6), pages 469-482.
    4. Souksavanh Vixathep & Nobuaki Matsunaga, 2012. "Firm Efficiency in Cambodia's Garment Industry on the Eve of the Multi-Fiber Arrangement Termination," Asian Economic Journal, East Asian Economic Association, vol. 26(4), pages 359-380, December.
    5. Noel Uri, 2003. "The Effect of Incentive Regulation in Telecommunications in the United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 37(2), pages 169-191, May.
    6. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    7. Luigi Benfratello & Alberto Iozzi & Paola Valbonesi, 2009. "Technology and incentive regulation in the Italian motorways industry," Journal of Regulatory Economics, Springer, vol. 35(2), pages 201-221, April.
    8. World Bank, 2007. "How to Revitalize Infrastructure Investments in Brazil : Public Policies for Better Private Participation, Volume 2. Background Report," World Bank Other Operational Studies 8045, The World Bank.
    9. Resende, Marcelo, 1999. "Productivity growth and regulation in U.S. local telephony," Information Economics and Policy, Elsevier, vol. 11(1), pages 23-44, March.
    10. Akpan, Sunday Brownson & Udo, U.J. & Essien, Ubon A., 2011. "Influence of firm related factors and industrial policy regime on technology based capacity utilization in sugar industry in Nigeria," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(3), September.
    11. Mark Frank, 2003. "An Empirical Analysis of Electricity Regulation on Technical Change in Texas," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 22(4), pages 313-331, June.
    12. Ronaldo Seroa da Motta & Ajax R. B. Moreira, 2015. "Efficiency and Regulation in the Sanitation Sector in Brazil," Discussion Papers 0139, Instituto de Pesquisa Econômica Aplicada - IPEA.
    13. Weisman, Dennis L., 2002. "Is there 'Hope' for price cap regulation?," Information Economics and Policy, Elsevier, vol. 14(3), pages 349-370, September.
    14. Uri, Noel D., 2003. "The adoption of incentive regulation and its effect on technical efficiency in telecommunications in the United States," International Journal of Production Economics, Elsevier, vol. 86(1), pages 21-34, October.
    15. Resende, Marcelo, 2002. "Relative efficiency measurement and prospects for yardstick competition in Brazilian electricity distribution," Energy Policy, Elsevier, vol. 30(8), pages 637-647, June.
    16. Ronaldo Seroa da Motta & Ajax R.B. Moreira, 2004. "Efficiency and Regulation in the Sanitation Sector in Brazil," Discussion Papers 1059, Instituto de Pesquisa Econômica Aplicada - IPEA.
    17. Facanha, Luis Otavio & Resende, Marcelo, 2004. "Price cap regulation, incentives and quality:: The case of Brazilian telecommunications," International Journal of Production Economics, Elsevier, vol. 92(2), pages 133-144, November.
    18. Weisman, Dennis L., 2002. "Strategic sharing in regulatory regimes," Economics Letters, Elsevier, vol. 75(3), pages 361-367, May.
    19. Noel Uri & Florence Setzer, 2003. "Assessing the Performance of the Price Cap Plan for Local Exchange Carriers in the United States," European Journal of Law and Economics, Springer, vol. 15(3), pages 263-276, May.
    20. Seo, Daigyo & Shin, Jonghyup, 2011. "The impact of incentive regulation on productivity in the US telecommunications industry: A stochastic frontier approach," Information Economics and Policy, Elsevier, vol. 23(1), pages 3-11, March.
    21. Tupper, Henrique Cesar & Resende, Marcelo, 2004. "Efficiency and regulatory issues in the Brazilian water and sewage sector: an empirical study," Utilities Policy, Elsevier, vol. 12(1), pages 29-40, March.
    22. Uri, Noel D., 2001. "The effect of incentive regulation on productive efficiency in telecommunications," Journal of Policy Modeling, Elsevier, vol. 23(8), pages 825-846, November.

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