In this study, we address a major problem in the measurement of firm performance and the regulation of natural monopolies, namely the intertemporal character of long-term investment decisions. In specific, we focus on the impact of adjustment costs of investments on estimates of firms’...

This paper explores the consequences for parametric and non-parametric efficiency levels and rankings when using grouped instead of individual Decision Making Units (DMU). The bias results due to the differences of the grouped DMUs frontier compared to the individual DMUs frontier. Monte Carlo...

We develop a network technology model for pollution abatement that distinguishes between the two primary forms that abatement can take: Prevention of emissions from occurring in the first place, and treatment of any emissions that are generated by the production process. Our network model...