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Rate of Return Regulation: The Case of Spanish Ports

Gema Carrera-Gómez, José Baños, Pablo Coto-Millán () and Vicente López de Sabando

International Advances in Economic Research, 2005, vol. 11, issue 2, 200 pages

Abstract: An original model is put forward in this article to explain and consider the behavior of some of the most important public services in Spain. The cost function approach and the input distance function approach are used to estimate the existence of overcapitalization as a result of rate of return regulation. The results show that overcapitalization generated by this regulation is too significant not to be taken into account. Copyright International Atlantic Economic Society 2005

Keywords: L51; L52; L59; L95; L97; L98 (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/s11294-005-3015-8

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