Total administrative costs of FHSA were £215M in 1994r1995 current prices Ž .
and we estimate that cost increased between 1989r1990 and 1994r1995 by 123%
as a result of shift in the cost function, rather than changes in its arguments.
Although the shift in the cost function may not be due to the 1990 reforms, these
were the most obvious change in the FHSA environment in this period and no
other factors suggest themselves. If the year dummies are picking up the effect of
the increase in administrative tasks, we have identified a further large cost of the
1990 reforms.