Subsidies and inefficiency: stochastic frontier approach.
U.S. urban transit systems receive operating and capital subsidies from various levels of government. Each firm minimizes its cost net of subsidies subject to its production function. The first order conditions from this minimization give a set of equations that are estimated using a stochastic fr...
| Publicado en: | Contemporary Economic Policy Vol. 15; pp. 113 - 128 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
July 1997
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=510837052&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 510837052 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 10743529 CEY jtl: Contemporary Economic Policy issn: 10743529 maglogo: N pubinfo: dt: July 1997 vid: 15 pid: 480 pub: Wiley-Blackwell artinfo: ui: 510837052 10.1111/j.1465-7287.1997.tb00483.x ppf: 113 ppct: 15 formats: fmt: @attributes: type: T tig: atl: Subsidies and inefficiency: stochastic frontier approach. aug: au: Sakano, Ryoichi Obeng, Kofi Azam, G. su: Stochastic processes Stochastic frontier analysis Federal aid to transportation Urban transportation finance Mathematical models of economics Subsidies Mathematical models Industrial efficiency Bus lines Finance sug: subj: Stochastic processes Stochastic frontier analysis Federal aid to transportation Urban transportation finance Mathematical models of economics Subsidies Mathematical models Industrial efficiency Bus lines Finance ab: U.S. urban transit systems receive operating and capital subsidies from various levels of government. Each firm minimizes its cost net of subsidies subject to its production function. The first order conditions from this minimization give a set of equations that are estimated using a stochastic frontier approach. From the results are calculated technical and allocative inefficiencies. The allocative inefficiencies are further decomposed among two sources, subsidies and factors internal to the firm. The analysis reveals large allocative inefficiencies between labor, fuel, and capital. Furthermore, it finds that subsidies lead to excess use of labor relative to capital and excess use of fuel relative to capital and labor. Also, most allocative inefficiencies in firms are due to internal factors and not subsidies, and the sizes of the inefficiencies vary substantially among transit firms. Reprinted by permission of Western Economic International 7400 Center Ave., Ste. 109, Huntington Beach, CA 92647-3039, USA. Ph. 1-714-898-3222, Fax 1-714-891-6715. E-mail [|Wu]info @weainternational.org[|WU] [|Wu]http://www.weainternational.org.[|WU] pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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