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Electricity', Journal of Law and Economics, 5, October, 1-16 -- George J. Stigler (1971), 'The Theory of Economic Regulation … of Regulation', Journal of Law and Economics, 19 (2), August, 211-40 -- Harold Demsetz (1968), 'Why Regulate Utilities …-27 -- Richard A. Posner (1971), 'Taxation by Regulation', Bell Journal of Economics and Management Science, 2 (1), Spring, 22 …
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In this paper we advocate using the latent class model (LCM) approach to control for technological differences in traditional efficiency analysis of regulated electricity networks. Our proposal relies on the fact that latent class models are designed to cluster firms by uncovering differences in...
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We present solutions to each of the major delegation problems that arise when elected officials delegate rulemaking authority to government agencies. These problems include principal-agent issues, monopoly provision, information asymmetry, and tragedy of the commons. Rather than presenting our...
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