Property rights in a fishery: regulatory change and firm performance

Productivity development in Icelandic, Norwegian and Swedish fisheries

“…But what is the empirical experience in terms of productivity? Fox et al (2003) and Dupont et al (2005) evaluate the introduction of ITQs using data from before and after the introduction and do find substantial firm-level productivity improvements despite fairly short data periods of 5-6 years, although stock changes are not adjusted for.…”

Price-cap regulation in the English and Welsh water industry: A proposal for measuring productivity performance

“…To overcome this gap, and inform the regulatory process, this paper proposes a methodology that measures productivity change across companies and over time when sample sizes are extremely small. Since it follows an index-number approach, the main advantage of the proposed methodology is that it applies to comparative performance measurement under regulation, where consideration of both spatial and temporal differences in TFP is necessary for setting appropriate X-factors (Fox et al, 2003). This advantage is especially important because for many countries, the number of regulatory companies can be very small.…”

“…Taking into account the objectives of this study, the importance of the derivation of productivity measures across firms and over time using index numbers (non-frontier approach) is twofold. First, frontier methods such as DEA or SFA require a relatively large number of observations to specify an efficient frontier, whereas an index-number approach allows meaningful comparative performance measurement even if the number of available observations is limited (Fox et al, 2003;Diewert and Lawrence, 2006;Hwand and Lee, 2013). Second and more importantly, the index-number approach is particularly applicable to comparative performance measurement under regulation, where consideration of both water companies (in productivity terminology it is known as spatial dimension) and temporal differences in TFP is necessary for setting appropriate regulated prices (Fox et al, 2003).…”

“…In the first step, measures of temporal (unit-specific) productivity across time for each firm are provided (Saal and Parker, 2001). Next, productivity comparisons across companies at any given year (multilateral spatial comparisons) are calculated by using a multilateral Fisher index (Ball et al 2001;Fox et al, 2003;Pierani, 2009).…”

“…They illustrate the usefulness of computing the TFP for setting the X factor in terms of providing a scientific basis to regulatory decision-making. The main advantage of nonfrontier techniques, such as the index-number approach is that it can be employed to decompose productivity growth regardless of the number of inputs and outputs specified, even in cases where the number of observations is extremely limited (Fox et al 2003). This advantage is of outmost significance in the framework of regulated industries where the number of companies operating at the country level might be small.…”