A decade of experience has shown that monitoring the performance of public and private monopolies is the hardest part of electricity sector reform in South America-because operators control most of the information needed for effective regulation. South American electricity regulators can reduce...

We analyze the impact of alternative regulatory regimes on the labor productivity of electricity distribution firms in Latin America. We find that (i) incentive-based regimes lead to higher labor productivity than rate-of-return regulation, and (ii) privatized firms operating under rate of...