An Income Efficiency Model Approach to the Economic Consequences of Osha Cotton Dust Regulation

Ehsan Feroz, Raymond Raab and Stephen Haag
Additional contact information
Raymond Raab: School of Business and Economics, University of Minnesota, Duluth, Minnesota 55812, USA.
Stephen Haag: Information Technology and Electronic Commerce, University of Denver. Denver. CO 80208, USA.

Australian Journal of Management, 2001, vol. 26, issue 1, 69-89

Abstract: This paper used Data Envelopment Analysis IDEA) to test the economic consequences of the Occupational Health and Safety Administration (OSHA) cotton dust standards by comparing the relative efficiency of firms affected by cotton dust in SIC 2200 and 2300 for the years before and after the Supreme Court upheld the regulation in 1981. Accounting-based inputs of common equity, total assets and production costs were minimized, while total revenue was maximized. Using available Compustat firms, we found that the surviving firms under stiff foreign competition had become more efficient during the post-regulatory period as predicted. The results indicate the usefulness of DEA as an alternative method of testing the economic consequences of a regulation.

Keywords: INCOME EFFICIENCY; DATA ENVELOPMENT ANALYSIS; OSHA REGULATION; COTTON DUST (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:26:y:2001:i:1:p:69-89

DOI: 10.1177/031289620102600105

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