An empirical investigation into the distorting effects of subsidies on firm efficiency, this book puts together and applies recent developments in econometric methods to explore efficiency consequences of government subsidy on firm operations. Within the neoclassical framework, the book provides analytical solutions capturing the effect of subsidy on cost, output, input demand, and allocative distortions when the firm receives operating and capital subsidies. By doing so, the book avoids the ad-hoc models that have been used to estimate the effect of subsidy on firm efficiency in the transit industry.
The book takes the analytical model and develops empirical models to estimate the effect of subsidy on firm efficiency in transit firms. It applies a variety of techniquesdeterministic, stochastic frontier estimation, and Data Envelopment Analysis to capture various aspects of the effect of subsidy. It separates allocative inefficiency into those due to subsidy and those due to internal factors. The book's contribution is the consistency and thoroughness with which the authors deal with the topic and the rigor of the empirical estimation.
|Publisher:||Greenwood Publishing Group, Incorporated|
|Product dimensions:||6.32(w) x 9.44(h) x 0.71(d)|
About the Author
K. OBENG is UPS Professor of Transportation at North Carolina A & T State University, where he has taught transportation and economics for 14 years. He is the author of numerous journal articles.
A.H.M. GOLAM AZAM is Assistant Professor of Economics at North Carolina A & T State University and has published in various journals on subjects including transportation and international economics.
R. SAKANO is Assistant Professor of Economics at North Carolina A & T State University. His research focuses on applied econometrics in various subjects in economics, including transportation, income distribution, labor economics, and international economics.
Table of Contents
Recent Trends in Transit Costs, Revenues, and Subsidies
Government Subsidy and Economic Inefficiency
Optimization Model of Subsidy-Cost Linkage
Allocative Distortions from Subsidies
Modeling Technical Inefficiency Using Data Envelopment Analysis
Stochastic Frontier Model
Allocative Efficiency and Pareto Efficiency
Summary and Conclusion