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Measuring the change in productive efficiency in telecommunications in the USA

Measuring the change in productive efficiency in telecommunications in the USA Incentive regulation has become an important regulatory tool in the telecommunications industry in the USA. The issue explored here is whether incentive regulation has resulted in an increase in productive efficiency. After providing an overview of the nature of incentive regulation, a methodology for measuring technical efficiency and its change is introduced. This is a multiple-output/multiple-input distance function approach to measuring technical efficiency. The results of implementing this approach for 19 local exchange carriers for the 1988-1999 period indicate that, in the production of local service, intrastate toll/access service, and interstate access to local loops, there was no change in technical efficiency between the 1988-1990 and the 1991-1999 periods, something that incentive regulation was specifically designed to promote. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Studies Emerald Publishing

Measuring the change in productive efficiency in telecommunications in the USA

Journal of Economic Studies , Volume 29 (2): 18 – Apr 1, 2002

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Publisher
Emerald Publishing
Copyright
Copyright © 2002 MCB UP Ltd. All rights reserved.
ISSN
0144-3585
DOI
10.1108/01443580210420808
Publisher site
See Article on Publisher Site

Abstract

Incentive regulation has become an important regulatory tool in the telecommunications industry in the USA. The issue explored here is whether incentive regulation has resulted in an increase in productive efficiency. After providing an overview of the nature of incentive regulation, a methodology for measuring technical efficiency and its change is introduced. This is a multiple-output/multiple-input distance function approach to measuring technical efficiency. The results of implementing this approach for 19 local exchange carriers for the 1988-1999 period indicate that, in the production of local service, intrastate toll/access service, and interstate access to local loops, there was no change in technical efficiency between the 1988-1990 and the 1991-1999 periods, something that incentive regulation was specifically designed to promote.

Journal

Journal of Economic StudiesEmerald Publishing

Published: Apr 1, 2002

Keywords: Telecommunications industry; Regulations; USA

References