14 February 2008
14 Feb 2008
Regulatory Agencies : Impact on Firm Performance and Social Welfare
This report looks into the relation between the establishment of a regulatory agency and the performance of the electricity sector using regression analysis. The authors exploit a unique dataset comprising firm-level information on a representative sample of 220 electric utilities from 51 development and transition countries for the years 1985 to 2005. Their results indicate that regulatory agencies are associated with more efficient firms and with higher social welfare.