The Effect of Incentive Regulation in Telecommunications in the United States

Quality and Quantity

Volumn 37, Issue 2, 2003, Pages 169-191

  Uri, Noel D ^a  

^a FEDERAL COMMUNICATIONS COMMISSION   (United States)

Author keywords

Data envelop analysis; Incentive regulation; Local exchange carrier; Technical efficiency

Indexed keywords

EID: 0038703574     PISSN: 00335177     EISSN: None     Source Type: Journal    
DOI: 10.1023/A:1023305426380     Document Type: Article

References (58)

1. Abramovitz, M. (1956). Resource and Output Trends in the United States since 1870. New York: National Bureau of Economic Research.
2. Aigner, D., Lovell, C. & Schmidt, P. (1977) Formulation and estimation of stochastic frontier production models. Journal of Econometrics 6: 21-37.
3. Ali, A. and Seiford, L. (1993). The mathematical programming approach to efficiency analysis. In: H. Fried, C. Lovell & S. Schmidt (eds), The Measurement of Productive Efficiency, Oxford: Oxford University Press.
4. Averch, H. & Johnson, L. (1962). Behavior of the firm under regulatory constraint. American Economic Review 52: 1052-1069.
5. Banker, R., Charnes, A. & Cooper, W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science 30: 1078-1092.
6. Baron, D. (1991). Information, incentives, and commitment in regulatory mechanisms: Regulatory innovation in telecommunications. In: M. Einhorn (ed.), Price Caps and Incentive Regulation in Telecommunications. Boston: Kluwer Academic Publishers.
7. Battese, G. & Coelli, T. (1992). Frontier production functions, technical efficiency, and panel data with application to paddy farmers in India. Journal of Productivity Analysis 3: 153-169.
8. Battese, G. & Coelli, T. (1993). A stochastic frontier production function incorporating a model for technical inefficiency effects. Working Paper 69, Department of Econometrics, University of New England, Armidale, Australia.
9. Battese, G. & Coelli, T. (1995). A Model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20: 325-332.
10. Bernstein, J. & Sappington, D. (1999). Setting the X factor in price-cap regulation plans. Journal of Regulatory Economics 16: 5-25.
11. Binswanger, H. (1974). The measurement of technical change biases with many factors of production. American Economic Review 64: 964-976.
12. Brennan, T. (1989). Regulating by capping prices. Journal of Regulatory Economics 1: 133-147.
13. Brown, M. & Popkin, J. (1962). A measure of technical change and returns to scale. Review of Economics and Statistics 44: 402-411.
14. Cabral, L. & Riordan, M. (1989). Incentives for cost reduction under price cap regulation. Journal of Regulatory Economics 1: 26-42.
15. Charnes, A., Cooper, W. & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research 2: 429-444.
16. Coelli, T. (1996). A guide to FRONTIER Version 4.1: A computer program for stochastic frontier production and cost function estimation. Department of Econometrics, University of New England, Armidale, NSW, Australia.
17. Coelli, T. (1996). A guide to DEAP Version 2.1: A data envelopment analysis (computer) program. Department of Econometrics, University of New England, Armidale, NSW, Australia.
18. David, P. & van de Klundert, T. (1965). Biased efficiency growth and capital-labor substitution in the U.S., 1899-1969. American Economic Review 55: 357-394.
19. Debreu, G. (1951). The coefficient of resource utilization. Econometrica 19: 273-292.
20. Dodd, A. (1998). The Essential Guide to Telecommunications. Upper Saddle River, NJ: Prentice-Hall.
21. Fare, R., Grosskopf, S. & Lovell, C. (1994). Production Frontiers. Cambridge: Cambridge University Press.
22. Farrell, M. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society 120: 253-281.
23. Federal Communications Commission (various years). Statistics of Communications Common Carriers. Washington, DC: U.S. Government Printing Office.
24. Goldsmith, R. (1951). A Perpetual Inventory of National Wealth. New York: National Bureau of Economic Research.
25. Greene, W. (1997). Econometric Analysis. Upper Saddle River, NJ: Prentice-Hall.
26. Grosskopf, S. (1993). Efficiency and productivity. In: H. Fried, C. Lovell & S. Schmidt (eds), The Measurement of Productive Efficiency. Oxford: Oxford University Press.
27. Huang, C. & Liu, J. (1994). Estimation of a non-neutral stochastic frontier production function. Journal of Productivity Analysis 5: 171-180.
28. Isaac, M. (1991). Price cap regulation: A case study of some pitfalls of implementation. Journal of Regulatory Economics 3: 193-210.
29. Kahn, A. (1970). The Economics of Regulation. New York: John Wiley and Sons.
30. Koopmans, T. (1951). An analysis of production as an efficient combination of activities. In: T. Koopmans (ed.), Activity Analysis of Production and Allocation. New York: John Wiley and Sons.
31. Kridel, D., Sappington, D. & Weisman, D. (1996). The effects of incentive regulation in the telecommunications industry: A survey. Journal of Regulatory Economics 9: 269-306.
32. Kumbhakar, S., Gosh, S. & McGuckin, J. (1991). A generalized production frontier approach for estimating determinants of inefficiency in US dairy farms. Journal of Business and Economics Statistics 9: 279-286.
33. Leibenstein, H. & Maital, S. (1992). Empirical estimation and partitioning of X-inefficiency: A data-envelopment approach. American Economic Review 82: 428-433.
34. Littlechild, S. (1983). Regulation of British Telecom's profitability. Report to the Secretary of State, Department of Industry, London.
35. Lovell, C. (1993). Production frontiers and productive efficiency. In: H. Fried, C. Lovell & S. Schmidt (eds), The Measurement of Productive Efficiency. Oxford: Oxford University Press.
36. Majumdar, S. (1995). X-efficiency in emerging competitive markets: The case of U.S. telecommunications. Journal of Economic Behavior and Organization 26: 129-144.
37. Majumdar, S. (1997). Incentive regulation and productive efficiency in the U.S. telecommunications industry. Journal of Business 70: 547-576.
38. Meeusen, W. & J. van den Broeck (1977). Efficiency estimation from Cobb-Douglas production functions with composed error. International Economic Review 18: 435-444.
39. Mitchell, B. & Vogelsang, I. (1991). Telecommunications Pricing: Theory and Practice. Cambridge: Cambridge University Press.
40. Newton, H. (1999). Newton's Telecom Dictionary. New York: Miller Freeman.
41. Nishimizu, M. & Page, J. (1982). Total factor productivity growth, technological progress and technical efficiency change: Dimensions of productivity change in Yugoslavia, 1965-1978. Economic Journal 92: 920-936.
42. Noam, E. (1991). The quality of regulation in regulating quality. In: M. Einhorn (ed.), Price Caps and Incentive Regulation in Telecommunications. Boston: Kluwer Academic Publishers.
43. Ohta, M. (1974). A note on the duality between production and cost functions: Rate of return to scale and rate of technological progress. Economic Studies Quarterly 25: 63-65.
44. Reifschneider, D. & Stevenson, R. (1991). Systematic departures from the frontier: A framework for the analysis of firm inefficiency. International Economic Review 32: 715-723.
45. Resende, M. (2000). Regulatory regimes and efficiency in US local telephony. Oxford Economic Papers 52: 47-470.
46. Sappington, D. (1980). Strategic firm behavior under a dynamic regulatory adjustment process. The Bell Journal of Economics 11: 360-372.
47. Seiford, L. & Thrall, R. (1990). Recent developments in DEA: The mathematical programming approach to frontier analysis. Journal of Econometrics 46: 7-38.
48. Sherman, R. (1985). The Averch and Johnson analysis of public utility regulation twenty years later. Review of Industrial Organization 2: 178-193.
49. Sherman, R. (1992). Capital waste in the rate-of-retum regulated firm. Journal of Regulatory Economics 4: 197-204.
50. Shin, R. & Ying, J. (1993). Costly gains to breaking up: LECs and the baby bells. Review of Economics and Statistics 98: 357-361.
51. Solow, R. (1956). Technical change and the aggregate production function. Review of Economics and Statistics 39: 312-320.
52. Stevenson, R. (1980). Likelihood functions for generalized stochastic frontier estimation. Journal of Econometrics 13: 57-66.
53. Tardiff, T. & Taylor, W. (1993). Telephone Company Performance Under Alternative Forms of Regulation. New York: National Economic Research Associates.
54. Taylor, L. (1994). Telecommunications Demand in Theory and Practice. Dordrecht, the Netherlands: Kluwer Academic Publishers.
55. Telecommunications Industry Association (2000). 2000 Multimedia Telecommunications Market Review and Forecast. Arlington, VA: MMMTA Market Research.
56. Uri, N. (2000). Price caps and the error in X-factor calculations. Information Economics and Policy, Vol. 12, pp. 329-339.
57. Vogelsang, I. (1988). Price-Cap Regulation of Telecommunications Services: A Long-Run Approach, in M. Crew (ed.), Deregulation and Diversification of Utilities. Dordrecht, the Netherlands: Kluwer Academic Publishers.
58. Vogelsang, I. (1991). A non-Bayesian incentive mechanism using two-part tariffs. In: M. Einhorn (ed.), Price Caps and Incentive Regulation in Telecommunications. Boston: Kluwer Academic Publishers.