Productive Efficiency And Regulatory Reform: The Case Of Vehicle Inspection Services
Measuring productive efficiency provides information on the likely effects of regulatory reform. We present a Data Envelopment Analysis (DEA) of a sample of 38 vehicle inspection units under a concession regime with a homogeneous level of quality, which is enforced by a regional regulator, between the years 2000 and 2004. The differences in efficiency scores show the potential technical efficiency benefits of introducing some form of incentive regulation or of progressing towards liberalization. We also compute scale efficiency scores, showing that only units in territories with a very low population density operate at a sub-optimal scale. Among those that operate at an optimal scale, there are significant differences in size; the largest ones operate in territories with the highest population density. This suggests that the introduction of new units into the most densely populated territories (a likely effect of some form of liberalization) would not be detrimental in terms of scale efficiency. The firm’s identity seems to be a determinant of the distance to the efficiency frontier. Finally, we show that between 2002 and 2004, a period of high regulatory uncertainty in the sample’s region, technical change was almost zero. Regulatory reform should take due account of scale and diversification effects, while at the same time avoiding regulatory uncertainty.
Volume (Year): 19 (2011)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Postal: Revista de Economía Aplicada Departamento de Estructura Económica y Economía Pública Facultad de Ciencias Económicas Gran Vía, 2 50005 Zaragoza Spain|
Fax: 976 76 19 96
Web page: http://www.revecap.com/revista/default.html
More information through EDIRC
|Order Information:|| Web: http://www.revecap.com/revista/ Email: |
References listed on IDEAS
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.:
- Coelli, T J, 1996. "Measurement of Total Factor Productivity Growth and Biases in Technological Change in Western Australian Agriculture," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(1), pages 77-91, Jan.-Feb..
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc.
- E. Grifell-Tatjé & C. Lovell, 1999. "A generalized Malmquist productivity index," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 7(1), pages 81-101, June.
- Dusansky, Richard & Wilson, Paul W, 1994. "Technical Efficiency in the Decentralized Care of the Developmentally Disabled," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 340-45, May.
- Thomas N. Hubbard, 1997. "Using Inspection And Maintenance Programs To Regulate Vehicle Emissions," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 52-62, 04.
When requesting a correction, please mention this item's handle: RePEc:rev:reveca:v:19:y:2011:i:1:p:33-59. 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: (Ana Belén Gracia)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.