Tests of allocative efficiency in regulated multi-product firms

Resources and Energy Pub Date : 1990-04-01 DOI:10.1016/0165-0572(90)90041-G

Scott E. Atkinson, Robert Halvorsen

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引用次数: 13

Abstract

In this paper a shadow normalized restricted profit function is used to test for allocative efficiency with respect to both inputs and outputs in regulated firms producing multiple outputs. The efficiency of input choices is tested by examining the relationship between marginal rates of technical substitution and input price ratios, while the efficiency of output pricing is tested by examining the relationship between the price and marginal cost of each output. Observation specific estimates of deviations from efficient behavior are obtained by specifying the shadow prices of outputs and variable inputs as functions of variables that are causally related to the sources of inefficiency.

The model is estimated with data for privately-owned electric utilities in the United States. The results indicate that the price of residential output is less than its marginal cost and the price of commercial-industrial output is greater than its marginal cost. Utilities subject to fuel adjustment clauses are found to use more than the cost-minimizing amount of fuel relative to labor.

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受管制的多产品企业配置效率的检验

本文用一个影子归一化限制利润函数来检验生产多种产品的受管制企业在投入和产出方面的配置效率。通过检验边际技术替代率与投入价格比率之间的关系来检验投入选择的效率，而通过检验每种产出的价格与边际成本之间的关系来检验产出定价的效率。通过将产出和可变投入的影子价格指定为与低效率来源有因果关系的变量的函数，可以获得对有效行为偏差的具体观察估计。该模型是用美国私有电力公司的数据估计的。结果表明，居民产出价格小于其边际成本，工商业产出价格大于其边际成本。受燃料调整条款约束的公用事业单位使用的燃料超过了相对于劳动力的成本最小化量。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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Resources and Energy

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