Università della Svizzera italiana

Regulation and measuring cost-efficiency with panel data models : application to electricity distribution utilities

Farsi, Mehdi ; Filippini, Massimo

In: Review of Industrial Organization, 2004, vol. 25, no. 1, p. 1-19

This paper examines the performance of panel data models in measuring cost efficiency of electricity distribution utilities. Different cost frontier models are applied to a sample of 59 utilities operating in Switzerland from 1988 to 1996. The estimated coefficients and inefficiency scores are compared across different specifications. The results indicate that while the average inefficiency is...