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Efficiency Measurement and Regulation in U.S. Telecommunications: A Robustness Analysis

Marcelo Resende ()

No ECO2006/15, Economics Working Papers from European University Institute

Abstract: The paper investigates the robustness of different efficiency measures that can support the implementation of diverse forms of incentive regulation in the context of U.S. telecommunications. Comparisons, in terms of an output orientation, are considered for efficiency scores obtained from Data Envelopment Analysis (DEA), distance function (with corrected ordinary least squares and a random effects model) and distance function embedded in a stochastic frontier framework (with time invariant, time varying efficiencies or with inefficiency effects). Similarly to the previous empirical literature, one finds, in most cases, only a moderate consistency across the different approaches. In fact, the different spectrum of techniques imposed varied degrees of structure in the error term and indicated non-negligible discrepancies across the different measurement approaches in terms of the ranking structure, degree of persistence and best and worst practices patterns.

Keywords: efficiency measurement; yardstick regulation (search for similar items in EconPapers)
JEL-codes: D29 L59 L96 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-eff, nep-ind and nep-reg
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Citations: View citations in EconPapers (1)

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Journal Article: Efficiency measurement and regulation in US telecommunications: A robustness analysis (2008) Downloads
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