THE OPERATION OF SWEDISH MOTOR-VEHICLE INSPECTIONS - EFFICIENCY AND SOME PROBLEMS CONCERNING REGULATION

Efficiency in the operation of the Swedish motor-vehicle inspection mo nopoly was examined by analyzing data on all decision-making units rel ated to production of inspection services during 1993. In addition, th eoretically based arguments concerning some regulation problems are di scussed. The results imply a fairly high level of technical efficiency , which might be explained by the extensive practice of yardstick-comp etition in the industry. The findings, based on a best-practice approa ch, do not indicate strong empirical evidence in support of a deregula tion of the industry. However, the regulation problems discussed may p rovide motives for deregulation.