Kenneth Løvold Rødseth

This paper demonstrates that the conventional weak G-disposable Data Envelopment Analysis estimator can equally be represented by i) an extended weak G-disposability model that characterizes uncontrolled emissions, end-of-pipe abatement and input quality differences and ii) a convex regression-based factorially determined multi-output production framework. Using these new results, the paper demonstrates that other seminal models proposed in the literature on materials balance-based production analysis are special cases of the original weak G-disposable framework. Thereby, it contributes to reconciling competing methods used for environmental production analysis. The paper further demonstrates novel applications of the unified approach by offering an extended decomposition of environmental efficiency when also considering pollution control and input quality differences among Decision Making Units. A transparent numerical example and applied environmental efficiency analysis of US electricity generating units showcase the virtues of the unified approach.

Adaption to prices is an important feature of productivity development. This paper proposes an extension of the StoNED model to accommodate estimation of allocative efficiency. It demonstrates how indirect production theory is suited for assessing allocative efficiency and helps alleviating the curse of dimensionality for stochastic nonparametric estimators compared to conventional measures of allocative efficiency. Furthermore, the paper elaborates on the appropriate cost of capital for the estimation of allocative efficiency. The proposed model framework is utilized to study allocative efficiency of Norwegian container ports, thereby adding to the literature on seaport terminal efficiency studies.

This paper ties broadband development to regional economic growth and focuses on the optimal timing of investments. A Directional Distance Function framework is proposed for characterising the relationship between broadband investment and economic development, and a two-stage estimation procedure combining Convex Nonparametric Least Squares with Linear Programming is developed for estimating optimal investment paths. The model framework is applied to a novel dataset comprising 21 regions in the Baltic countries. The results indicate that Gross Regional Domestic Product could be increased by up to 10 per cent by adopting optimal regional investment paths. We find intercountry differences, where Latvian regions exhibit more inefficient investment strategies compared to regions subordinate to their neighbouring countries. There are also signs of over-investment in broadband in some regions.

Basic education and public transport services are often provided by local or regional governments. In Norway, they fall within the remit of two different tiers of government, with public transport being the responsibility of regional government (fylke), while basic education (primary and secondary schools) is the responsibility of local government (kommune). Current efforts to consolidate and reorganize the school structure have yielded mixed results. On the one hand, such changes can help reduce public spending by exploiting economies of scale in the provision of education, for instance by having fewer and larger schools. On the other hand, they are likely to lead to cost increases by expanding the geographic coverage of school transport. Furthermore, transporting schoolchildren during peak commuting hours may exacerbate cost increases for regional governments. Our paper examines the cost effect of changing the school structure with respect to transport provision. Applying econometric analysis to panel datasets at the municipal and regional levels, we seek to identify the impact of the number of pupils and school size on the costs of providing school transport. We combine these data with data on transport provision to look at the effects of school-related transport on costs and competitive tendering in public transport. We show that a school closure can increase the cost of providing public transportation both by increasing the cost of maintaining the current level of public transport services and by necessitating the expansion of the supply. The empirical results indicate that municipalities’ economic gains from school consolidation generally outweigh the corresponding cost increases related to the provision of public transport.