Regulatory Reform And Economic Performance In US Electricity Generation
- Topics:
- Organization
- Tags:
- Economic Performance,
- Incentive,
- Productivity,
- Sales,
- Sales Force Management,
- Technique,
- Total Factor Productivity,
- University Of Queensland
- Source:
- University of Queensland
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Overview: This paper investigates the effect of the introduction of incentive regulation upon the Total Factor Productivity (TFP) growth of electricity generation companies in the United States, using sample data on 61 firms observed over a 13-year period from 1986 to 1998. Empirical estimates of TFP growth are obtained using three techniques: Tornqvist index numbers, a stochastic cost frontier and a stochastic input distance function. The results obtained using the stochastic cost frontier are discarded because they are found to differ from those obtained using the other techniques, apparently as a consequence of violations of the required cost minimizing behavioral assumptions, which are not uncommon in regulated industries.
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Format: PDF | Size: 253KB | Date: Sep 2004 | Pages: 29
