Productivity Change, Technical Progress, and Efficiency Improvement in Telecommunications

Productivity Change, Technical Progress, and Efficiency Improvement in Telecommunications Implementation of incentive regulation intelecommunications requires the accurate measurementof the change in productivity. An approach isintroduced that not only provides a measure of thechange in productivity but also allows for adecomposition into two mutually exclusive andexhaustive components – changes in technicalefficiency over time and shifts in technology overtime. Using annual data on four output measures andsix input measures for the period 1988 to 1998 fornineteen individual local exchange carriers, theresults indicate that productivity increased by about5.0 percent per year. This growth is due primarily toinnovation rather than improvements in efficiency. Ofthe nineteen LECs in the sample, thirteen wereoperating efficiently throughout the entire 1988–1998period. Of the remaining six, two showed a slightimprovement in efficiency while the efficiency of fourdeclined. In the aggregate, however, there wasvirtually no change in efficiency. Finally, acomparison is made between two methods of estimatingthe change in productivity. The conventional growthaccounting approach yields a lower estimate of therate of change in productivity than does the Malmquistindex approach. The difference between theseestimates is interpreted as the lower bound of thebias associated with the conventional growthaccounting approach to measuring the growth inproductivity. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Productivity Change, Technical Progress, and Efficiency Improvement in Telecommunications

Loading next page...
 
/lp/springer_journal/productivity-change-technical-progress-and-efficiency-improvement-in-wemWWBCaxl
Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007822509696
Publisher site
See Article on Publisher Site

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches

$49/month

Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.

$588

$360/year

billed annually
Start Free Trial

14-day Free Trial