that the eight-year catch-up period allowed in this regulation gives strong incentives to reduce costs since the firms can …Data Envelopment Analysis (DEA) based cost norms have attractive properties in the regulation of natural monopolies … to suboptimal incentives. When a regulated firm compares the marginal change in its cost norm with its marginal cost of …

.Chapter four discusses the impact of ability grouping in secondary educationon student incentives. Education provides a signal on … unobservable abilityfor employers and improves productivity after education. Selection setsbetter incentives in primary education …