The Dynamic Allocative Efficiency of a Public Utility: Swiss Telecommunications
Public utilities are typically endowed with the following characteristics that are likely to affect their performance: (1) no competitors, (2) political pressures and regulation, (3) soft budget constraints. This paper explores the efficiency of such a utility, the Swiss telecommunication monopolist, which should supply universal service at minimum cost. It develops a new approach that makes it possible to handle the dynamics introduced by capital accumulation under adjustment costs. Excessive costs are estimated at 1.5 percent for the 1957-1992 period. One half of the cost savings were obtainable by better intra-temporal input choice, the other half by smoothing the path of capital accumulation.
Year of publication: |
1994
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Authors: | Manzini, Antonio ; Thalmann, Philippe |
Published in: |
Swiss Journal of Economics and Statistics (SJES). - Schweizerische Gesellschaft für Volkswirtschaft und Statistik / Société Suisse d"Économie et de Statistique - SGVS/SSES, ISSN 0303-9692. - Vol. 130.1994, II, p. 129-144
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Publisher: |
Schweizerische Gesellschaft für Volkswirtschaft und Statistik / Société Suisse d"Économie et de Statistique - SGVS/SSES |
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