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Regulation and consumer satisfaction from public services: an individual fixed effects approach

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  • Simona GRASSI
  • Riccardo PUGLISI

Abstract

When survey-based, self-reported measures of satisfaction are used as dependent variables in a regression framework, the estimates may be biased and inconsistent. We adopt the measurement error perspective introduced by Bertrand and Mullainathan [2001], and propose an individual fixed-effects technique to tackle some of the consistency issues deriving from the potential correlation between the explanatory variables and the biases in the reported level of satisfaction. We apply the fixed-effects method to the analysis of the correlation between reported levels of satisfaction derived from the consumption of services of general interests collected in the Eurobarometer special surveys, and measures of the regulatory and competitive environment collected in the REGREF database.

Suggested Citation

  • Simona GRASSI & Riccardo PUGLISI, 2008. "Regulation and consumer satisfaction from public services: an individual fixed effects approach," Departmental Working Papers 2008-21, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2008-21
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    File URL: http://wp.demm.unimi.it/files/wp/2008/DEMM-2008_021wp.pdf
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    References listed on IDEAS

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    1. Daniele CHECCHI & Massimo FLORIO & Jorge CARRERA, 2004. "Privatization discontent and its determinants: evidence from Latin America," Departmental Working Papers 2004-23, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    2. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
    3. Fiorio, Carlo V. & Florio, M. & Salini, S. & Ferrari, P.A., 2007. "Consumers' Attitudes on Services of General Interest in the EU: Accessibility, Price and Quality 2000-2004," Privatisation Regulation Corporate Governance Working Papers 12195, Fondazione Eni Enrico Mattei (FEEM).
    4. Carlo Vittorio FIORIO & Massimo FLORIO, 2008. "Do you pay a fair price for electricity? Consumers’ satisfaction and utility reform in the EU," Departmental Working Papers 2008-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    5. Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
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    Cited by:

    1. Donatella Baiardi & Riccardo Puglisi & Simona Scabrosetti, 2012. "Individual Attitudes on Food Quality and Safety: Empirical Evidence on EU Countries," DEM Working Papers Series 014, University of Pavia, Department of Economics and Management.
    2. Giancarlo MANZI & Pier Alda FERRARI, "undated". "Statistical methods for evaluating satisfaction with public services Abstract: Contrary to private enterprises, public enterprises can be unaware of the impact of their performance when providing serv," CIRIEC Working Papers 1404, CIRIEC - Université de Liège.

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    More about this item

    Keywords

    Consumer surveys; consumer satisfaction; survey response;
    All these keywords.

    JEL classification:

    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General

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