We analyze the impact of alternative regulatory regimes on the labor productivity of electricity distribution firms in Latin America. We find that (i) incentive-based regimes lead to higher labor productivity than rate-of-return regulation, and (ii) privatized firms operating under rate of...

In reviewing contracts, establishing price limits, or arbitrating conflicts, regulatory agencies and policy advisors face significant information asymmetry in determining the appropriate allowed rate of return, or discount rate. The information gap is especially important in determining the...