In this paper we propose a general approach for estimating stochastic frontier models, suitable when using long panel data sets. We measure efficiency as a linear combination of a finite number of unobservable common factors, having coefficients that vary across firms, plus a time-invariant...

The purpose of this study is to analyze the cost efficiency of electricity distribution systems in order to enable regulatory authorities to establish price- or revenue cap regulation regimes. The increasing use of efficiency analysis in the last decades has raised serious concerns among...

Several countries around the world have introduced reforms to the electric power sector. One important element of these reforms is the introduction of an unbundling process, i.e., the separation of the competitive activities of supply and production from the monopole activity of transmission and...