WJBA_wp2007_03.pdf (268.59 kB)
Regulatory benchmarking with panel data
preprint
posted on 2007-03-30, 11:18 authored by Necmiddin Bagdadioglu, Thomas G. Weyman-JonesThis 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.
History
School
- Business and Economics
Department
- Economics
Pages
236639 bytesPublication date
2007Notes
This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2007_03.html.ISSN
1750-4171Language
- en