IDEAS home Printed from https://ideas.repec.org/a/rev/reveca/v19y2011i1p33-59.html
   My bibliography  Save this article

Productive Efficiency And Regulatory Reform: The Case Of Vehicle Inspection Services

Author

Listed:
  • FRANCESC TRILLAS

    (Universitat Autònoma de Barcelona)

  • DANIEL MONTOLIO

    (Universitat de Barcelona)

  • NÉSTOR DUCH

    (Universitat de Barcelona)

Abstract

Measuring productive efficiency provides information on the likely effects of regulatory reform. We present a Data Envelopment Analysis (DEA) of a sample of 38 vehicle inspection units under a concession regime with a homogeneous level of quality, which is enforced by a regional regulator, between the years 2000 and 2004. The differences in efficiency scores show the potential technical efficiency benefits of introducing some form of incentive regulation or of progressing towards liberalization. We also compute scale efficiency scores, showing that only units in territories with a very low population density operate at a sub-optimal scale. Among those that operate at an optimal scale, there are significant differences in size; the largest ones operate in territories with the highest population density. This suggests that the introduction of new units into the most densely populated territories (a likely effect of some form of liberalization) would not be detrimental in terms of scale efficiency. The firm’s identity seems to be a determinant of the distance to the efficiency frontier. Finally, we show that between 2002 and 2004, a period of high regulatory uncertainty in the sample’s region, technical change was almost zero. Regulatory reform should take due account of scale and diversification effects, while at the same time avoiding regulatory uncertainty.

Suggested Citation

  • Francesc Trillas & Daniel Montolio & Néstor Duch, 2011. "Productive Efficiency And Regulatory Reform: The Case Of Vehicle Inspection Services," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(1), pages 33-59, Spring.
  • Handle: RePEc:rev:reveca:v:19:y:2011:i:1:p:33-59
    as

    Download full text from publisher

    File URL: http://www.revecap.com/revista/numeros/55/pdf/trillas_montolio_duch.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Thomas N. Hubbard, 1997. "Using Inspection And Maintenance Programs To Regulate Vehicle Emissions," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 52-62, April.
    2. Glass, J C & McKillop, Donal G & Hyndman, N, 1995. "Efficiency in the Provision of University Teaching and Research: An Empirical Analysis of UK Universities," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(1), pages 61-72, Jan.-Marc.
    3. Dusansky, Richard & Wilson, Paul W, 1994. "Technical Efficiency in the Decentralized Care of the Developmentally Disabled," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 340-345, May.
    4. E. Grifell-Tatjé & C. Lovell, 1999. "A generalized Malmquist productivity index," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 7(1), pages 81-101, June.
    5. Coelli, T J, 1996. "Measurement of Total Factor Productivity Growth and Biases in Technological Change in Western Australian Agriculture," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(1), pages 77-91, Jan.-Feb..
    6. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    7. Jose Manuel Cordero-Ferrera & Francisco Pedraja-Chaparro & Javier Salinas-Jimenez, 2008. "Measuring efficiency in education: an analysis of different approaches for incorporating non-discretionary inputs," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1323-1339.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ags:phajad:199094 is not listed on IDEAS
    2. Fabio A. Madau & Roberto Furesi & Pietro Pulina, 2017. "Technical efficiency and total factor productivity changes in European dairy farm sectors," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-14, December.
    3. Emmanuel Thanassoulis & Maria Da Conceicao & A. Silva Portela, 2002. "School Outcomes: Sharing the Responsibility Between Pupil and School1," Education Economics, Taylor & Francis Journals, vol. 10(2), pages 183-207.
    4. Jindal, Abhinav & Nilakantan, Rahul, 2021. "Falling efficiency levels of Indian coal-fired power plants: A slacks-based analysis," Energy Economics, Elsevier, vol. 93(C).
    5. Ghose, Arpita & Bhattacharyya, Debjani, 2011. "Total Factor Productivity Growth and its Determinants for West Bengal Agriculture," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 8(01), pages 1-18, June.
    6. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2020. "Domestic market competitiveness of Indian drug and pharmaceutical industry," Review of Managerial Science, Springer, vol. 14(3), pages 519-559, June.
    7. Voigt, Peter, 2004. "Russlands Weg vom Plan zum Markt: Sektorale Trends und regionale Spezifika. Eine Analyse der Produktivitäts- und Effizienzentwicklungen in der Transformationsphase," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 28, number 93021, September.
    8. Cordero Ferrera, Jose Manuel & Alonso Morán, Edurne & Nuño Solís, Roberto & Orueta, Juan F. & Souto Arce, Regina, 2013. "Efficiency assessment of primary care providers: A conditional nonparametric approach," MPRA Paper 51926, University Library of Munich, Germany.
    9. J. Glass & Donal McKillop & Gary O'Rourke, 1998. "A Cost Indirect Evaluation of Productivity Change in UK Universities," Journal of Productivity Analysis, Springer, vol. 10(2), pages 153-175, October.
    10. José Cordero Ferrera & Eva Cebada & Luis Murillo Zamorano, 2014. "The effect of quality and socio-demographic variables on efficiency measures in primary health care," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(3), pages 289-302, April.
    11. Beatriz Gonzalez Lopez-Valcarcel & Patricia Barber Perez, 1996. "Changes in the efficiency of spanish public hospitals after the introduction of program-contracts," Investigaciones Economicas, Fundación SEPI, vol. 20(3), pages 377-402, September.
    12. Xiaoying Guo & Wei Wei & Yang Li & Lei-Ya Wang, 2019. "A Study of Different Types of Air Pollutants on the Efficiency of China’s Hotel Industry," IJERPH, MDPI, vol. 16(22), pages 1-13, November.
    13. Calogero Guccio & Giacomo Pignataro & Ilde Rizzo, 2014. "Evaluating the efficiency of public procurement contracts for cultural heritage conservation works in Italy," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(1), pages 43-70, February.
    14. Paolo Liberati & Raffaele Lagravinese & Giuliano Resce, 2017. "How Does Economic Social And Cultural Status Affect The Efficiency Of Educational Attainments? A Comparative Analysis On Pisa Results," Departmental Working Papers of Economics - University 'Roma Tre' 0217, Department of Economics - University Roma Tre.
    15. Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, February.
    16. Facundo Quiroga-Martínez & Esteban Fernández-Vázquez & Catalina Lucía Alberto, 2018. "Efficiency in public higher education on Argentina 2004–2013: institutional decisions and university-specific effects," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 27(1), pages 1-18, December.
    17. Bernardino Benito & José Solana & María-Rocío Moreno, 2014. "Explaining efficiency in municipal services providers," Journal of Productivity Analysis, Springer, vol. 42(3), pages 225-239, December.
    18. Souksavanh Vixathep & Nobuaki Matsunaga, 2012. "Firm Efficiency in Cambodia's Garment Industry on the Eve of the Multi-Fiber Arrangement Termination," Asian Economic Journal, East Asian Economic Association, vol. 26(4), pages 359-380, December.
    19. Tupper, Henrique Cesar & Resende, Marcelo, 2004. "Efficiency and regulatory issues in the Brazilian water and sewage sector: an empirical study," Utilities Policy, Elsevier, vol. 12(1), pages 29-40, March.
    20. Celik, Orhan & Ecer, Alaattin, 2009. "Efficiency in accounting education: evidence from Turkish Universities," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 20(5), pages 614-634.
    21. Torben Schubert & Guoliang Yang, 2016. "Institutional change and the optimal size of universities," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(3), pages 1129-1153, September.

    More about this item

    Keywords

    Productive Efficiency; Regulatory Reform; Vehicle Inspections;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rev:reveca:v:19:y:2011:i:1:p:33-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Belén Gracia (email available below). General contact details of provider: https://edirc.repec.org/data/dhzares.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.