WJ_NAPW4_06.pdf (265.47 kB)
Efficiency and productivity analysis in regulation and governance
preprint
posted on 2007-03-30, 11:18 authored by Tom Weyman-JonesThis paper surveys the application of efficiency and productivity analysis to
recent regulatory experience, especially in Europe. From a review of regulatory case
studies, particularly of network industries, it is clear that regulatory practice differs
from theoretical precedent in choice of methodology, sample size, model specification
and price or revenue control implementation. A principal-agent model of linear
regulatory contracts is used to understand this discrepancy, suggesting that efficiency
and productivity analysis has been used to capture economic rent rather than to
provide incentives for efficiency. Predictions of the model are used to investigate
other assumptions in efficiency and productivity analysis.
History
School
- Business and Economics
Department
- Economics
Pages
271845 bytesPublication date
2007Notes
This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_02.html.ISSN
1750-4171Language
- en