Thomas R. Harris

Specification and estimation of the effect of ownership on the economic efficiency of the water utilities

Abstract A stochastic frontier cost function is used to specify the cost of inefficiency of publicly and privately owned urban water utilities in terms of their different ownership structures and firm-specific characteristics. A translog cost function is used to approximate the production technology. Both mean and variance of inefficiency are specified in the model as functions of firm-specific factors. Estimation is done in two steps, which does not require a set of stringent distributional assumptions as needed for the estimation of a standard frontier model. Results show that when the operation is small, privately owned water utilities are comparatively more efficient. Public water utilities are comparatively more efficient when the scale of operation is large. A generalized likelihood ratio test of the null hypothesis that the inefficiency effects are not firm-specific is rejected in favor of a firm-specific specification.

A Stochastic Dominance Comparison of Water-Conserving Irrigation Strategies

Stochastic dominance and stochastic dominance with respect to a function are used to compare water-conserving irrigation strategies in an area of declining ground water supplies. A computerized grain sorghum plant growth model using daily weather observations provides the basis for stochastic dominance comparisons. Six irrigation strategies dominate contemporary intensive irrigation practices by first-degree stochastic dominance and two additional strategies exhibit second-degree stochastic dominance over contemporary practices. Dominant strategies involve irrigating based on a 45 percent soil water criterion and eliminating early season irrigations. Some dominant strategies reduce water use by as much as 40 percent while increasing expected net returns.

Cost analysis of water utilities: A goodness-of-fit approach

The behavior of privately owned and publicly owned water utilities is examined by calculating the percentage difference between the observed cost and the optimum cost consistent with the Weak Axiom of Cost Minimization for each individual water utility. It allows for a comprehensive analysis of nearly optimizing behavior of economic units as opposed to the conventional analysis of exact optimizing behavior. The empirical results provide evidence that private water utilities are more efficient than public water utilities.

Impacts of privatization: Use of multimodal survey

Abstract Given current local government fiscal stress, the privatization of public services has been considered as a way to balance local government budgets and improve community service efficiencies. However, along with economic efficiency, the social efficiency of the privatization should be considered. Social efficiency not only incorporates economic efficiency but also includes accountability and equity. In this study, the economic and social impact of the potential privatization of a local utility (Churchill County Communications) is estimated. A web-based questionnaire was employed to collect data quickly and efficiently from CC Communications employees and employ the questionnaire results in the analysis. Using and augmented input–output model of Churchill County, the analysis showed that privatization would reduce Churchill County employment by 279 jobs and reduce county household income by

Alternative grazing fee formula impacts on representative public land ranches.

36.171 million. In addition, the county could lose up to 14,735 hr of volunteer time and

Sources of growth and cyclical stability for Nevada counties: Transfer payments and property income

85,233 in charitable donations if CC Communications were privatized.

An Alternative Approach to Trade Area Analysis

The Farm Level Income Tax and Policy Simulation Model (FLIPSIM) was used to evaluate and quantify the impacts of alternative grazing fee formulas, discussed in the 1986 Grazing Review and Evaluation and its recent update. Economic viability (level of income and risk) was estimated for 4 representative ranches that lease public range lands in the western United States. Average annual net cash income is projected to be positive over the 1992-97 planning horizon although income is projected to decline for the first 4 years as cattle prices weaken. Average annual net cash income under the alternative grazing fee formulas falls by as much as 37% relative to the current Public Rangelands Improvement Act formula for all of the ranches studied. Real net worth of each ranch declines as much as 22% over the study period under the highest alternative grazing fee.

An Application of Difference-in-Difference-Difference Model Effects of Prevailing Wage Legislation in Mountain States of the United States

Abstract The growing relative number, the improved economic well-being, and the migration of elderly retirees is not only reshaping the social and economic structure of many areas, it is also modifying both long-term and short-run patterns of economic growth. Transfer payments and property incomes, two of the most important source of elderly income, have been among the leading sources of national income growth over the past several decades. Unlike most labor-related industry sources of earnings, the level of transfer payments and property incomes received by the residents of the region is not directly dependent upon local economic activity. Consequently, as transfer payments and property incomes of elderly retirees become increasingly important sources of income and purchasing power within a region, they also can alter regional short-run cyclical patterns of income growth. This article examines the pattern of growth of transfer payments and property incomes in the context of national economic cycles, and explores the implication of those findings on metropolitan and nonmetropolitan Nevada economies.

Impacts of Reduced Gaming Exports on the Economy of Nevada

Trade area analysis is widely used to help local decision makers assess commercial sector performance. Two trade area analysis tools, trade area capture and pull factors, have been used to judge a communitys current and potential commercial sector activity. This paper demonstrates how the pull factor can be reduced to a location quotient formulation that is less complex and data intensive, easier to explain and understand, and yields added information about commercial sector performance.

The Need for Multiple Information Sources in the Formulation of an Economic Development Plan: An Application of Delphi, Community, and Executive Survey Techniques

Institutional laws and arrangements such as prevailing wage laws influence the employment levels and wage rates of the local labor supply. Conflicting research, however, has shown that prevailing wage laws lead to higher construction costs, while others show little to no relationship. Most of these studies are completed at the national level whose results at the regional level may not be applicable. This article examines the impact of prevailing wage laws on construction wages in the Mountain States of the nation. Difference-in-difference-difference models were used, and results indicate that for the Mountain States, removal of prevailing wage laws decreased wages by 4.4% after 10 years of the repeal. However, because of the available data used in this analysis, the impacts of repealing the prevailing wage laws on benefits could not be determined, which from previous research could be significant.