IDEAS home Printed from https://ideas.repec.org/a/sae/ausman/v26y2001i1p69-89.html
   My bibliography  Save this article

An Income Efficiency Model Approach to the Economic Consequences of Osha Cotton Dust Regulation

Author

Listed:
  • Ehsan H. Feroz

    (School of Business and Economics, University of Minnesota, Duluth, Minnesota 55812, USA.)

  • Raymond Raab

    (School of Business and Economics, University of Minnesota, Duluth, Minnesota 55812, USA.)

  • Stephen Haag

    (Information Technology and Electronic Commerce, University of Denver. Denver. CO 80208, USA.)

Abstract

This paper used Data Envelopment Analysis IDEA) to test the economic consequences of the Occupational Health and Safety Administration (OSHA) cotton dust standards by comparing the relative efficiency of firms affected by cotton dust in SIC 2200 and 2300 for the years before and after the Supreme Court upheld the regulation in 1981. Accounting-based inputs of common equity, total assets and production costs were minimized, while total revenue was maximized. Using available Compustat firms, we found that the surviving firms under stiff foreign competition had become more efficient during the post-regulatory period as predicted. The results indicate the usefulness of DEA as an alternative method of testing the economic consequences of a regulation.

Suggested Citation

  • Ehsan H. Feroz & Raymond Raab & Stephen Haag, 2001. "An Income Efficiency Model Approach to the Economic Consequences of Osha Cotton Dust Regulation," Australian Journal of Management, Australian School of Business, vol. 26(1), pages 69-89, June.
    • Handle: RePEc:sae:ausman:v:26:y:2001:i:1:p:69-89
    DOI: 10.1177/031289620102600105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/031289620102600105
    Download Restriction: no
    File URL: https://libkey.io/10.1177/031289620102600105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    2. Hughes, John S & Magat, Wesley A & Ricks, William E, 1986. "The Economic Consequences of the OSHA Cotton Dust Standards: An Analysis of Stock Price Behavior," Journal of Law and Economics, University of Chicago Press, vol. 29(1), pages 29-59, April.
    3. Smith, P, 1990. "Data envelopment analysis applied to financial statements," Omega, Elsevier, vol. 18(2), pages 131-138.
    4. Charnes, A. & Cooper, W. W. & Golany, B. & Seiford, L. & Stutz, J., 1985. "Foundations of data envelopment analysis for Pareto-Koopmans efficient empirical production functions," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 91-107.
    5. Bartel, Ann P & Thomas, Lacy Glenn, 1985. "Direct and Indirect Effects of Regulation: A New Look at OSHA's Impact," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 1-25, April.
    6. Charles Dufour & Paul Lanoie & Michel Patry, 1998. "Regulation and Productivity," Journal of Productivity Analysis, Springer, vol. 9(3), pages 233-247, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. E H Feroz & S Kim & R L Raab, 2003. "Financial statement analysis: A data envelopment analysis approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(1), pages 48-58, January.
    2. Rosita Chong & Raihana Firdaus Seah Abdullah & Alex Anderson, 2009. "Survival-Ability Of Firm: Empirical Evidence From Malaysia," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 3(1), pages 133-145.

    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. Ali, Agha Iqbal & Lerme, Catherine S. & Seiford, Lawrence M., 1995. "Components of efficiency evaluation in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 80(3), pages 462-473, February.
    2. Loza, Andrés & Margaretic, Paula & Romero, Carlos, 2003. "Consistencia de medidas de eficiencia basadas en funciones de distancia paramétricas y no paramétricas: una aplicación al sector de distribuidoras de electricidad en la Argentina [Consistency of ef," MPRA Paper 15269, University Library of Munich, Germany.
    3. Maria Silva Portela & Pedro Borges & Emmanuel Thanassoulis, 2003. "Finding Closest Targets in Non-Oriented DEA Models: The Case of Convex and Non-Convex Technologies," Journal of Productivity Analysis, Springer, vol. 19(2), pages 251-269, April.
    4. Thierry Post & Laurens Cherchye & Timo Kuosmanen, 2002. "Nonparametric Efficiency Estimation In Stochastic Environments," Operations Research, INFORMS, vol. 50(4), pages 645-655, August.
    5. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
    6. Ioannis E. Tsolas, 2020. "Financial Performance Assessment of Construction Firms by Means of RAM-Based Composite Indicators," Mathematics, MDPI, vol. 8(8), pages 1-16, August.
    7. Pastor, Jesus T. & Aparicio, Juan & Alcaraz, Javier & Vidal, Fernando & Pastor, Diego, 2015. "An enhanced BAM for unbounded or partially bounded CRS additive models," Omega, Elsevier, vol. 56(C), pages 16-24.
    8. Kamila Radlińska, 2023. "Some Theoretical and Practical Aspects of Technical Efficiency—The Example of European Union Agriculture," Sustainability, MDPI, vol. 15(18), pages 1-18, September.
    9. Isidoro GUZMÁN & Narciso ARCAS, 2008. "The Usefulness Of Accounting Information In The Measurement Of Technical Efficiency In Agricultural Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 107-131, March.
    10. Jesus Pastor & Juan Aparicio & Juan Monge & Diego Pastor, 2013. "Modeling CRS bounded additive DEA models and characterizing their Pareto-efficient points," Journal of Productivity Analysis, Springer, vol. 40(3), pages 285-292, December.
    11. Lee, Chia-Yen, 2014. "Meta-data envelopment analysis: Finding a direction towards marginal profit maximization," European Journal of Operational Research, Elsevier, vol. 237(1), pages 207-216.
    12. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    13. Borger, Bruno De & Ferrier, Gary D. & Kerstens, Kristiaan, 1998. "The choice of a technical efficiency measure on the free disposal hull reference technology: A comparison using US banking data," European Journal of Operational Research, Elsevier, vol. 105(3), pages 427-446, March.
    14. Chen, Po-Chi & Yu, Ming-Miin & Chang, Ching-Cheng & Managi, Shunsuke, 2014. "Non-Radial Directional Performance Measurement with Undesirable Outputs," MPRA Paper 57189, University Library of Munich, Germany.
    15. Juan Aparicio & José Ruiz & Inmaculada Sirvent, 2007. "Closest targets and minimum distance to the Pareto-efficient frontier in DEA," Journal of Productivity Analysis, Springer, vol. 28(3), pages 209-218, December.
    16. M C A S Portela & E Thanassoulis, 2007. "Developing a decomposable measure of profit efficiency using DEA," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(4), pages 481-490, April.
    17. Haslem, John A. & Scheraga, Carl A. & Bedingfield, James P., 1999. "DEA efficiency profiles of U.S. banks operating internationally," International Review of Economics & Finance, Elsevier, vol. 8(2), pages 165-182, June.
    18. Kittelsen,S.A.C., 1999. "Monte Carlo simulations of DEA efficiency measures and hypothesis tests," Memorandum 09/1999, Oslo University, Department of Economics.
    19. R. Banker & W. Cooper & E. Grifell-Tajté & Jesús Pastor & Paul Wilson & Eduardo Ley & C. Lovell, 1994. "Validation and generalization of DEA and its uses," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 249-314, December.
    20. Verspagen, Bart & Werker, Claudia, 2003. "The Invisible College of The Economics of Innovation and Technological Change," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 21, pages 393-419, December.

    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:sae:ausman:v:26:y:2001:i:1:p:69-89. 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: SAGE Publications (email available below). General contact details of provider: http://www.agsm.edu.au .

    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.