This paper uses a stochastic cost frontier model to investigate the efficiency of Britain’s private railways during the period 1893-1912. We find that there was substantial inefficiency in the industry with no sign of reduction over time. Our main conclusion is that principal agent problems...

There are N citizens who have to make a social decision about a set policies denotedby x ∈ A, where A denotes the set of feasible policies. Citizen’s preferencesover policy are denoted V i (x, j) ( where i = 1, ...,N) ,and j denotes the identityof the policy maker. This specification allows...

In a model with heterogeneity in managerial talent, we compare the economicand political consequences of reforms aimed at reducing fixed costs of entry (deregulation)and improving the efficiency of financial markets (financial reform). Theeffects of these reforms depend on the market where...