efficiency scores derived from stochastic frontier analysis. To correct for this heterogeneity in coefficients, I propose a …. This estimation has better goodness of fit, reduced variance of all coefficients, and higher efficiency scores for nearly …

entities. For this, regulators need to assess the scope for efficiency savings at such entities using historical and forecast … data. There is, however, a moral hazard in regulated companies revealing the full scope for efficiency savings because the … regulator can then incorporate them into ever more demanding efficiency savings in future. Relatedly, unduly demanding short …

reduction. Practical implications – The empirical results are useful in assessing the relative efficiency of the large Indian … efficiency. Originality/value – Unlike the previous studies on the efficiency of the ID&P industry, the paper have shown the … production process and also possible target values of inputs and outputs are shown in the study. The robustness and stability of …

to suboptimal incentives. When a regulated firm compares the marginal change in its cost norm with its marginal cost of … that the eight-year catch-up period allowed in this regulation gives strong incentives to reduce costs since the firms can … the other hand, this scheme also provides very weak quality incentives since it takes eight years before the extra cost of …