Abstract:
Many comparisons of the performance of public and private producers use a public/private ownership dummy varaible to capture cost differences in cross section data. This is appropriate if the producer choice is random. The dummy variable model is, however, logically inconsistent if the producer choice depends on cost differences.
More papers in Working Papers from Uppsala - Working Paper Series Address: UPPSALA UNIVERSITY, DEPARTMENT OF ECONOMICS, S-751 20 UPPSALA SWEDEN. Contact information at EDIRC. Series data maintained by Thomas Krichel ().
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