ALLOCATIVE EFFICIENCY AND OVER-CAPITALIZATION: AN APPLICATION
In this study, the authors analyzed how it is possible to estimate the degree of overutilization of quasi-fixed inputs using 2 alternative methods: the cost function and the input distance function. From a theoretical standpoint, if the assumptions upon which the cost function is based are satisfied, the 2 methods should coincide. The authors applied the methodologies to the main Spanish Port Authorities for the 1985-1997 time period. Results suggest that, though both methods identify overcapitalization, the magnitude and significance of this differs according to the method used. In order to check whether this discrepancy is due to the non-satisfaction of the hypothesis of cost-minimization, the authors tested whether the variable inputs are allocated efficiently. This hypothesis is rejected, and it is concluded that the distance function, in this case, is more appropriate than the cost function.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/03918440
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Corporate Authors:
Instituti Editoriali e Poligrafici Internazionali
Via Giosue Carducci 60, Ghezzano
La Fontina, Italy 56010 -
Authors:
- Banos-Pino, J
- Coto-Millan, P
- Rodriguez-Alvarez, A
- Publication Date: 1999-6
Language
- English
Media Info
- Features: Figures; References; Tables;
- Pagination: p. 181-199
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Serial:
- International Journal of Transport Economics
- Volume: 26
- Issue Number: 2
- ISSN: 0391-8440
- Serial URL: http://www.libraweb.net/riviste.php?chiave=67
Subject/Index Terms
- TRT Terms: Capital costs; Cost allocation; Cost finding; Costs; Distance; Economic efficiency; Economic models; Estimating; Functions (Mathematics); Port authorities
- Uncontrolled Terms: Allocative efficiency; Cost minimization
- Geographic Terms: Spain
- Subject Areas: Administration and Management; Economics; Finance; Marine Transportation;
Filing Info
- Accession Number: 00781897
- Record Type: Publication
- Files: TRIS
- Created Date: Dec 28 2000 12:00AM