 On the Impact of Productive Efficiency and Quality of a Regulated Local Public Utility Upon Final Goods Prices and Consumer's WelfareGiornale degli Economisti, 2009, vol. 68, issue 3, 311-339 Abstract: In this paper, we analyse the process by which the decisions of a regulated local public utility, in terms of productive efficiency and quality of the service provided, impact on prices of final consumption goods, supplied in a oligopolistic market operating in the sae geographic area. The regulation rules we consider are twofold: a Price-Cap mechanism and a Minimum Quality Standard constraing, both largely applied in the practice of public utilities regulation in industrialised countries. In particular in Italy these rules are applied in water and waste collection services. We obtain some formula for these effects which can be quantified by estimating firms' conditional input demand function of the public service and firms' inverse demand function for this public good, non-rival, component. Finally, we draw the effects of productive efficiency and quality on consumer welfare via changes on tariffs, external effects and final goods prices. Keywords: Regulation; X-Efficiency; Oligopoly; Consumer Welfare (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:gde:journl:gde_v68_n3_p311-339 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Giornale degli Economisti from GDE (Giornale degli Economisti e Annali di Economia), Bocconi University via Sarfatti, 25 - 20136 Milano (Italy). |
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