Rodriguez-Alvarez, Ana and Del Rosal, Ignacio and Baños Pino, Jose (2002): Rent-seeking measurement in coal mining by means of labour unrest: an application of the distance function. Published in: Journal of Productivity Analysis , Vol. 1, No. 27 (2007): pp. 73-83.
Download (62kB) | Preview
We propose a method based on the distance function to empirically estimate the social cost arising from rent seeking behaviour in declining industries. Due to import competition, the factors of a particular industry undergo losses in real income, and have incentives to seek protection. In the case of declining industries, workers play a central role and the losses in output due to strikes are used to quantify the social cost of rent seeking. In our model, strikes are considered as a “bad” input into the production process. We apply our approach to the case of Spanish coal mining. We have estimated a system of equations formed by the input distance function and cost share equations using annual data over the period 1974-1997. This procedure has allowed us to calculate the cost that strikes have imposed on the sector
|Item Type:||MPRA Paper|
|Institution:||Departmen of Economics. School of Economics and Business Administration. University of Oviedo|
|Original Title:||Rent-seeking measurement in coal mining by means of labour unrest: an application of the distance function|
|Keywords:||Production theory; rent seeking; input distance function; shadow prices; coal sector|
|Subjects:||F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels
|Depositing User:||Ana Rodriguez-Alvarez|
|Date Deposited:||23. Jun 2007|
|Last Modified:||17. Feb 2013 21:02|
Baldwin, R.E. (1984), “Rent-Seeking and Trade Policy: An Industrial Approach", Weltwirtschaftliches Archiv, 120, 662-677. Berndt, E. R. (1991), The Practice of Econometrics. Classic and Contemporary, Reading (Massachusetts) etc., Addison-Wesley. Cornes, R. (1992), Duality and Modern Economics, Cambridge University Press, Cambridge. Del Rosal, I. (1999), “El Comercio Exterior de Carbón”, Boletín Económico de Información Comercial Española, nº 2613, April, 7-14. Del Rosal, I. (2000), “How Costly is the Maintenance of the Coal-Mining Jobs in Europe? The Spanish Case 1989-1995”, Energy Policy, 28 (8), 537-547. Del Rosal, I. and A. Fonseca (2001), “Rent-Seeking Measurement by Means of Labour Unrest in Trade Related Adjustment Processes. A Note”, Applied Economics Letters, 8, 273-277. Ferrier, G. and C. A. K. Lovell (1990), “Measuring Cost Efficiency in Banking: Econometric and Linear Programming Evidence”, Journal of Econometrics, 46, 229-245. Färe, R. and S. Grosskopf (1990), “A Distance Function Approach to Price Efficiency”, Journal of Public Economics, 43, 123-126. Färe, R. and S. Grosskopf (1998), ”Shadow Pricing of Good and Bad Commodities.” American Journal of Agricultural Economics, 80, 584-590. Färe, R., S. Grosskopf, C.A.K. Lovell and S. Yaisawarng (1993), “Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach”, Review of Economics and Statistics, 75, pp. 374-380. Färe, R. and D. Primont (1995), Multi-Output Production and Duality: Theory and Applications, Kluwer Academic Publishers, Norwell, Massachusetts Farrell, M.J. (1957), The Measurement of Productivity Efficiency", Journal of the Royal Statistical Society, Series TO, CXX, Part 3, 253-290. Higgins, R. S. and R. D. Tollison (1988), “Life Among the Triangles and Trapezoids: Notes on the Theory of Rent-Seeking", in C.K. Rowley, R. D. Tollison and G. Tullock (eds), The Political Economy of Rent-Seeking, Kluwer, Boston, 147-157. Krueger, A.O. (1974), The Political Economy of the Rent Seeking Society", American Economic Review, 64, 291-303. Lewis, H. G. (1986), “Union Relative Effects: A Survey”. University of Chicago Press, Chicago, IL. McNutt, P. A. (1996), The Economics of Public Choice, Edward Elgar, Cheltenham (UK). Rowley, C.K., R.D. Tollison, and G.Tullock (editors) (1988): The Political Economy of Rent- Seeking, Kluwer, Boston. Shephard, R. W. (1953), Cost and Production Functions, Princeton University Press, Princeton. Shephard, R. W. (1970): Theory of Cost and Production Functions, Princeton University Press, Princeton. Tullock, G. (1967), The Welfare Costs of Tariffs, Monopoly and Theft", Western Economic Journal, 3, 224-232. Tullock, G. (1997), “Where is the Rectangle?”, Public Choice, 91, 149-159. Vázquez, J.A. and I. Del Rosal, (1999), “The Mining of Coal”, Revista Asturiana de Economía, 15, 219-237. White, H. (1980), “A Heteroskedasticity-Consistent Covariance Matrix and a Direct Test for Heteroskedasticity.” Econometrica, 48, 721-746.