2134/2741
Necmiddin Bagdadioglu
Necmiddin
Bagdadioglu
Thomas G. Weyman-Jones
Thomas G.
Weyman-Jones
Regulatory benchmarking with panel data
Loughborough University
2007
Efficiency and productivity analysis
Regulation
Electricity distribution
Economics not elsewhere classified
2007-03-30 11:18:11
Preprint
https://repository.lboro.ac.uk/articles/preprint/Regulatory_benchmarking_with_panel_data/9493361
This paper considers panel data procedures for regulatory benchmarking that allow for both latent heterogeneity and inefficiency, encapsulating the regulatory dilemma in comparative efficiency analysis for incentive regulation. It applies a distance function model with appropriate concavity properties for econometric estimation to a panel of electricity distribution utilities in Turkey, since electricity industry reform is a major policy issue there. The results confirm the importance of allowing simultaneously for heterogeneity and inefficiency and emphasise the need for specific time-invariant heterogeneity information, such as geographical data, on regulated utilities in different regions.