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.