Defilippi Angeldonis, Enzo - Departamento Académico de Economía, Universidad del … - 2013
In theory, X-factor regulation provides better incentives for cost reduction than previously widely-used rate …-of-return regulation. However, a deeper look into how this factor is effectively estimated shows the regulator enjoys a great deal of … discretion, especially when selecting the methodologies used to estimate its components. This paper describes how the X-factor is …