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largest contributor of inefficiency and the ignorance of intertemporal effects leads to an over-estimation of allocative … inefficiency. …
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Data Envelopment Analysis (DEA) based cost norms are widely used to regulate natural monopolies like water, electricity, and gas networks. In the typical application, demand is considered fixed and non-controllable (non-discretionary), and the challenge is to incentivize the monopoly to provide...
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