The Impact of Changes in Regulation on Cost Behavior

MK Holzhacker, R Krishnan, M Mahlendorf

Research output: Contribution to journalArticleAcademicpeer-review

81 Citations (Scopus)


The article discusses a study which examined the effect of fixed-price regulation on cost elasticity and cost asymmetry. The effect of ownership on firms' adjustments to cost elasticity and cost asymmetry in response to price regulation is explored. Aside from examining whether the change in regulation influences cost elasticity, analyses explored the effect of a change in regulation on the asymmetric behavior cost. The data used, provided by the German Federal Statistical Office, consist of a random sample of 70 percent of the entire population of German hospitals for the years 1993-2008. Results emphasizes the necessity to distinguish between upward and downward changes in cost elasticity when examining cost behavior..
Original languageEnglish
Pages (from-to)534-566
Number of pages33
JournalContemporary Accounting Research
Issue number2
Publication statusPublished - 2015


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