Working
Papers
1, 2001 |
Productive
Structure, Cost Efficiency and Incentives in the Local Public Transport:
A Survey of Theoretical and Empirical Issues |
authors |
Massimiliano
PIACENZA
Università La Sapienza di Roma, Ceris CNR, HERMES |
abstract |
The paper reviews both the relevant economic theory
and the econometric evidence analyzing the productive structure of
Local Public Transport (LPT) industry. It highlights the main implications
of the empirical studies concerning: i] better knowledge of the technology
(cost function approach); ii] evaluation of firms
x-efficiency (cost frontier approach); and iii] possible
determinants of the deviations from the theoretical goal of cost minimization.
A particular emphasis is put on some recent contributions (Dalen and
Gomez-Lobo, 1995 and 1997; Gagnepain and Ivaldi, 1998 and 1999) which,
in the light of the theoretical predictions of the new regulatory
economics (Laffont & Tirole, 1993), have elaborated structural
models incorporating the role of institutional constraints and incentive
regulation into the empirical analysis of cost structure. We discuss
the usefulness of this new approach for studying the specific problems
faced by the Italian LPT sector, especially with regards to the ongoing
change in the subsidization mechanisms implemented at local level. |
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01/25/2004 19:36
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