IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2006y2006i4id292p350-363.html
   My bibliography  Save this article

Impact of Price-Deregulation on Market Outcomes - The Case of Chimney Sweep Services in Slovenia

Author

Listed:
  • Egon Žižmond

Abstract

In transition countries, especially in the period of central planning or semi-command regulation, prices of goods and services in the non-tradable sector were regulated, which was one of the main obstacles to normal functioning of the supply-demand market mechanism after the breakdown of the socialist economic system. In the period of economic transition reestablishment of market institutions arises, with price deregulation as one of the fundamental constitutional parts of this process. But in the case of transition economies there exists a recognized doubt in an immediately well functioning market system after deregulation because of inadequate development of the economic system in the past that produced a gap in the development of institutions typical for market economies. The aim of this article is to present the results of the empirical analysis on the market outcomes of price deregulation for chimney sweep services in the Slovenian economy. For this purpose we developed an original model for analysing market outcomes after price deregulation occurs. For the selected case study we recognize large cumulative price growth, that was a consequence of significant supply-side imperfection, since the selection among suppliers is based on the concession system at the municipality level.

Suggested Citation

  • Egon Žižmond, 2006. "Impact of Price-Deregulation on Market Outcomes - The Case of Chimney Sweep Services in Slovenia," Prague Economic Papers, University of Economics, Prague, vol. 2006(4), pages 350-363.
  • Handle: RePEc:prg:jnlpep:v:2006:y:2006:i:4:id:292:p:350-363
    as

    Download full text from publisher

    File URL: http://www.vse.cz/polek/download.php?jnl=pep&pdf=292.pdf
    Download Restriction: free of charge

    File URL: http://www.vse.cz/pep/292
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stanley W. Kardasz & Kenneth R. Stollery, 1998. "Determinants of domestic and import prices in Canadian manufacturing industries," Empirical Economics, Springer, vol. 23(4), pages 593-610.
    2. Smolny, Werner, 1998. "Innovations, Prices and Employment: A Theoretical Model and an Empirical Application for West German Manufacturing Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 46(3), pages 359-381, September.
    3. Kamien, Morton I & Schwartz, Nancy L, 1975. "Market Structure and Innovation: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(1), pages 1-37, March.
    4. Egon Zizmond & Matjaz Novak, 2006. "Sectoral Reallocation of Labour as a Limit on Total Factor Productivity Growth in Slovenia," Post-Communist Economies, Taylor & Francis Journals, vol. 18(2), pages 205-225.
    5. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-380, December.
    6. Carlton, Dennis W, 1986. "The Rigidity of Prices," American Economic Review, American Economic Association, vol. 76(4), pages 637-658, September.
    7. Robert E. Hall, 1986. "Market Structure and Macroeconomic Fluctuations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 17(2), pages 285-338.
    8. Caudill, Steven B & Ford, Jon M & Gropper, Daniel M, 1995. "Frontier Estimation and Firm-Specific Inefficiency Measures in the Presence of Heteroscedasticity," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(1), pages 105-111, January.
    9. Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x, January.
    10. Maccini, Louis J, 1981. "On the Theory of the Firm Underlying Empirical Models of Aggregate Price Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(3), pages 609-624, October.
    11. Nai-Pew Ong, 1981. "Target Pricing, Competition, and Growth," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 4(1), pages 101-116, October.
    12. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    13. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    transition; Slovenia; Inflation inertia; non-tradable sector; technical efficiency; costs; technical coefficient; market competitiveness;

    JEL classification:

    • D - Microeconomics
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2006:y:2006:i:4:id:292:p:350-363. 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: (Frantisek Sokolovsky). General contact details of provider: http://edirc.repec.org/data/uevsecz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.