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The effects of subsidies on the cost structure of Japanese water supply organizations

  • Takuya Urakami

    ()

The purpose of this study is to identify the effects of subsidies on the cost structure of Japanese water supply organizations by estimating the translog cost function. Geographical conditions, such as network density and water sources, are also controlled in this model. The empirical results indicate that low network density, lack of own water sources and increasing subsidies lead to higher costs. It has also been found that subsidies have caused wasteful use of labor, capital and other input factors, and have diminished scale economies.

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File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa04/PDF/260.pdf
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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p260.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p260
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  1. Kim, Moshe & Spiegel, Menahem, 1987. "The effects of lump-sum subsidies on the structure of production and productivity in regulated industries," Journal of Public Economics, Elsevier, vol. 34(1), pages 105-119, October.
  2. Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer, vol. 80(2), pages 211-230.
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