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On the Assessment of Regulators' Efficiency. An Application to European Telecommunications

Author

Listed:
  • Paolo Lupi

    (Servizio Analisi di Mercato e Concorrenza, Autoritˆ per le Garanzie nelle Comunicazioni (ITALY))

  • Fabio M. Manenti

    (Universitˆ di Padova)

  • Antonio Scialˆ

    (Universitˆ di Padova)

  • Cristiano Varin

    (Universitˆ di Venezia)

Abstract

This paper offers a methodology to assess the internal productive efficiency of National Regulatory Authorities (NRAs) based on the performances of regulated markets, measured in terms of the degree of market efficiency (either static or dynamic). The estimation procedure is based on a Data Envelopment Analysis (DEA), along with a smoothed bootstrap method and it is applied to telecommunications sector across 18 European countries, 5 of which are new accession countries, in 2005. After the discussion of several desirable outcomes for a telecom regulator, we construct an ad hoc database containing information about NRAs regulatory inputs and outputs. We run three bootstrapped DEAs in order to rank NRAs according to their efficiency in carrying out their regulatory activities. We find the NRAs in 2004 accession countries are more efficient in pursuing dynamic efficiency goals than the more experienced NRAs, while they perform generally worse when the regulatory outcomes are measured in terms of retail efficiency.

Suggested Citation

  • Paolo Lupi & Fabio M. Manenti & Antonio Scialˆ & Cristiano Varin, 2009. "On the Assessment of Regulators' Efficiency. An Application to European Telecommunications," "Marco Fanno" Working Papers 0098, Dipartimento di Scienze Economiche "Marco Fanno".
    • Handle: RePEc:pad:wpaper:0098
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    References listed on IDEAS

    as
    1. Kneip, Alois & Simar, Léopold & Wilson, Paul W., 2008. "Asymptotics And Consistent Bootstraps For Dea Estimators In Nonparametric Frontier Models," Econometric Theory, Cambridge University Press, vol. 24(6), pages 1663-1697, December.
    2. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-641, June.
    3. M. Bourreau & P. Dogan, "undated". "Innovation and Regulation in the Telecommunications Industry," Working Paper 33652, Harvard University OpenScholar.
    4. Bourreau, Marc & Dogan, Pinar, 2001. "Regulation and innovation in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 25(3), pages 167-184, April.
    5. Antonio Afonso & Carla Scaglioni, 2006. "An Assessment of Telecommunications Regulation Performance in the European Union," Working Papers Department of Economics 2006/07, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
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    More about this item

    Keywords

    regulators efficiency; Data Envelopment analysis; bootstrapping; telecommunications;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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