1
Associate Professor, Economics Department, University of Tarbit Moddaress
2
.Ph.D. in Economics, Economics Department, Tarbbit Moddaress University
Abstract
scarcity induce firms to cost-minimizing and allocation of recourses in efficient behavior. But when prices are distorted and the lack of the effective competition inputs are used inefficiently, the result is under- or over-utilization of factors relative to their endowments or allocative inefficiency. In this paper, we consider a method for estimating allocative inefficiency using shadow cost approach and system of equations and apply it to data from 161 manufactures of textile during 2006-2007. Results show strong allocative inefficiency and increase in cost of production of firms by 23% of the production costs in studied period
Yavari, K., & Firoozan, T. (2013). Evaluating the Costs of Energy Price Distortions in Iranian Textile Industry. The Journal of Economic Policy, 1(2), 37-58.
MLA
Kazem Yavari; Tohid Firoozan. "Evaluating the Costs of Energy Price Distortions in Iranian Textile Industry". The Journal of Economic Policy, 1, 2, 2013, 37-58.
HARVARD
Yavari, K., Firoozan, T. (2013). 'Evaluating the Costs of Energy Price Distortions in Iranian Textile Industry', The Journal of Economic Policy, 1(2), pp. 37-58.
VANCOUVER
Yavari, K., Firoozan, T. Evaluating the Costs of Energy Price Distortions in Iranian Textile Industry. The Journal of Economic Policy, 2013; 1(2): 37-58.
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