Allocative and X-efficiency in state-owned mining enterprises: Comparisons between Bolivia and Indonesia

Abstract

This paper deals with “efficiency” issues in state-owned enterprises mining minerals in Indonesia and Bolivia. In the enterprises under comparison, welfare losses from Alocative inefficiency appear to be decidedly nontrivial. Cases of behavior consistent with X-efficiency theory are also presented, but no determination of the relative quantitative importance of allocative and X-inefficiencies is attempted. Nevertheless, many of the insights offered by X-efficiency theory may be promising complementary tools for understanding and evaluating the performance of state-owned enterprises in mixed economies.