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Tracking the stepwise effects of regulatory reforms over time: a 'back-door' approach

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Most of the literature on the efficiency effects of regulatory reforms ignores the gradual nature of the implementation of these reforms. This article describes a new simple data manipulation that minimizes data requirements to measure econometrically the impact on efficiency of each stage of multi-stages regulatory reforms. The approach can easily be implemented using standard stochastic frontier software programs. It is illustrated with data on the Spanish port system, which went through a two-stage reform during the 1990s.

Document Type: Research Article


Affiliations: 1: DAEA, Facultad de Ciencias Economicas y Empresariales, 35017, Las Palmas de Gran Canaria, Spain 2: CREPP, Universite de Liege, B4000 Liege, Belgium

Publication date: January 1, 2009

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