Application of Panel Data Models in Benchmarking Analysis of the Electricity Distribution Sector*

Farsi, Mehdi; Filippini, Massimo; Greene, William H.

doi:10.1111/j.1467-8292.2006.00306.x

Cited by 83 publications

(58 citation statements)

References 35 publications

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“…In the pooled model, any theatre-specific effects are, however, assumed to be zero. According to Farsi, Filippini and Greene (2006), the omission of such heterogeneity may lead to biased estimates of parameters describing the production frontier and also to an overstatement of technical inefficiency, u it and hence understatement of technical efficiency, TE it . The inclusion of time-invariant unobserved heterogeneity in the efficiency model for theatres is essential as their output is very heterogeneous due to the importance of artistic quality.…”

Section: Estimation Strategymentioning

confidence: 99%

“…This model has had in fact numerous applications in Swiss Journal of Economics and Statistics, 2011, Vol. 147 (2) 32 This model was applied to examine the cost efficiency for many sectors, such as Swiss nursing homes (Farsi, Filippini and Kuenzle, 2005), the electricity distribution sector in Switzerland (Farsi, Filippini and Greene, 2006) and also German public theatres (Last and Wetzel, 2010). 33 A better alternative to control for the correlation bias would be the TRE model with Mundlak adjustment (see .…”

Section: Estimation Strategymentioning

confidence: 99%

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An analysis of technical efficiency and efficiency factors for Austrian and Swiss non-profit theatres

Zieba

2011

Swiss J Economics Statistics

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Summary This article explores the measurement of the production technology and efficiency of the performing arts sector. The stochastic frontier analysis has been used to estimate the technical efficiency scores for 20 Austrian and 30 Swiss non-profit theatres over 36 and 26 years, respectively. The number of visitors and tickets on offer are considered as two alternative measures of artistic output. The results indicate that individual efficiency estimates are very sensitive to the econometric specification of the unobserved heterogeneity of theatres. In particular, econometric techniques which do not account for this heterogeneity produce much lower efficiency levels. The indefinable dimension of artistic output such as theatre-specific quality may also have an important influence on efficiency estimates. The empirical analysis also delivers the first insights into the impact of exogenous factors on technical efficiency such as the number of theatres in the local area, regional differences and the level of public subsidies.

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Section: Estimation Strategymentioning

confidence: 99%

Section: Estimation Strategymentioning

confidence: 99%

An analysis of technical efficiency and efficiency factors for Austrian and Swiss non-profit theatres

Zieba

2011

Swiss J Economics Statistics

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“…9 The benchmarking literature on DSOs emphasizes the importance of controlling for both observed and unobserved firm-specific heterogeneity to describe the underlying production process (Farsi and Filippini, 2004;Farsi et al, 2006). 10 We focus on electricity distribution.…”

Section: Literature Review and Two Hypothesesmentioning

confidence: 99%

“…Farsi and Filippini (2004) and Farsi et al (2006). can affect the DSOs' strategic investment behaviors. For example, Poudineh and Jamasb (2013), who study DSOs in Norway, show that investment decisions depend on the efficiency level attained in the previous period and the expected efficiency value in the next period.…”

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confidence: 99%

Regulation and Investment Incentives in Electricity Distribution: An Empirical Assessment

Cullmann

Nieswand

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe analyze the effects of an incentive based regulatory scheme with revenue caps on the investment behaviors and decisions of 109 electricity distribution companies operating in Germany in 2006-2012. We hypothesize that Germany's implementation of incentive regulation in 2009 has a negative impact on total investment, and that firms increase their investments in the base year. We build a model that controls for both firm-specific heterogeneity and ownership structure and test it with the German data. The results show that investments increase after incentive regulation, and that the institutional constraints used to determine the revenue caps influence the distribution companies' investment decisions. We also note that the investments increase in the base year when the rate base is determined for the following regulatory period. We conclude that a comprehensive assessment of Germany's electricity distribution companies' investment decisions and behaviors should account for firm specific heterogeneity. It should further include all institutional aspects of incentive regulation to design incentives that will foster investments in the region's energy networks.JEL-Classification: L94, L51, L98

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“…Economic literature is basically founded on efficiency analysis, using a strictly econometric analysis approach on the basis of mainly parametric and non-parametric Data Envelopment Analysis (DEA) methods (Farsi, Filippini, & Greene, 2006). Contributions recognize the presence both of economies of scale and economies of density although positions, in some cases, are divergent.…”

Section: Main Research Conducted In the Economic Spherementioning

confidence: 99%

Natural Gas Distribution Industry in Italy: Ongoing Changes and Emerging Problems at the Competitive Level

Testa¹,

Cassia²,

Bonfanti³

2013

CUBR

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The natural gas distribution industry in Italy is undergoing profound reorganization. Italian legislators, by decree 164/2000 (the so-called Letta Decree), in compliance with EU guidelines, began liberalizing the natural gas distribution industry. Many regulatory and legislative acts were forthcoming in the following decade, redefining governance of this industry. Many legal and economic studies have been carried out on this matter. What is still lacking is an analysis that considers the effects on the intensity of competition of the Italian retail market, also and especially in light of the 2011 decrees (Decree January 19th, 2011 about tariff areas, Decree June 1st, 2011 about the Italian energy market and its transparency and Decree October 18th, 2011 about the assignment of each of the 8,092 Italian municipalities to a tariff area). This paper bridges this gap in research. The paper, through a qualitative approach, first considers and then discusses the expected results of the new regulation from a competitive-managerial standpoint. Specifically, it examines the changes and the effects on (1) the natural gas distribution industry; (2) the distribution companies; and (3) the users concerning: (a) structural; (b) economic; and (c) service quality dimensions. We suggest that only by considering the desired impacts at all three levels (industry as a whole-companies-users) is it possible to have a clear picture both of the benefits and of the pitfalls of the new legislation at the competitive level.

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Application of Panel Data Models in Benchmarking Analysis of the Electricity Distribution Sector*

Cited by 83 publications

References 35 publications

An analysis of technical efficiency and efficiency factors for Austrian and Swiss non-profit theatres

An analysis of technical efficiency and efficiency factors for Austrian and Swiss non-profit theatres

Regulation and Investment Incentives in Electricity Distribution: An Empirical Assessment

Natural Gas Distribution Industry in Italy: Ongoing Changes and Emerging Problems at the Competitive Level

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