The Danish water regulator uses, among other things, Data Envelopment Analysis to create a pseudo-competitive environment for the water companies. The benchmarking results are used to set an individual revenue cap for each company. The benchmarking model is currently criticized for not including...

The Danish water regulator uses, among other things, Data Envelopment Analysis to create a pseudo-competitive environment for the water companies. The benchmarking results are used to set an individual revenue cap for each company. The benchmarking model is currently criticized for not including...

Data Envelopment Analysis (DEA) is a widely used tool to estimate relative efficiencies. However, this methodology encounters issues when between-group comparisons with variable returns of scale (VRS) are of interest. In this specification efficiency scores can be undefined when the projection...