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DEA and dynamic yardstick competition in Scandinavian electricity distribution

Author

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  • AGRELL, Per J.
  • BOGETOFT, Peter
  • TIND, Jorgen

Abstract

Multi-period multi-product regulatory schemes for electricity distributors are presented, based on cost information from a productivity analysis model and an agency theoretical decision model. The proposed schemes are operational and demonstrate considerable advantages compared to the popular CPI-X revenue cap regulation. The schemes avoid arbitrariness, excessively high or negative informational rents as well as ratchet effects and they promote rapid productivity catch-up by making full use of available data. More generally, the paper contributes to the theoretical unification between firm-based Data Envelopment Analysis (DEA) productivity models and micro-economic reimbursement theories. Copyright Springer Science+Business Media, Inc. 2005
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • AGRELL, Per J. & BOGETOFT, Peter & TIND, Jorgen, 2005. "DEA and dynamic yardstick competition in Scandinavian electricity distribution," LIDAM Reprints CORE 1837, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1837
    DOI: 10.1007/s11123-005-1327-6
    Note: In : Journal of Productivity Analysis, 23, 173-201, 2005
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