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Università della Svizzera italiana

Persistent and transient productive inefficiency in a regulated industry : electricity distribution in New Zealand

Filippini, Massimo ; Greene, William H. ; Masiero, Giuliano

The productive efficiency of a firm can be decomposed into two parts, one persistent and one transient. So far, most of the cost efficiency studies estimated frontier models that provide either the transient or the persistent part of productive efficiency. This distinction seems to be appealing also for regulators. During the last decades, public utilities such as water and electricity have...