Incentive Indexes for Regulated Industries |
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| Authors: | Diewert W Erwin Fox Kevin J |
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| Institution: | (1) Department of Economics, University of British Columbia, Canada;(2) The University of British Columbia, Vancouver, B.C., V6T 1Z1, Canada;(3) School of Economics, University of New South Wales, UK;(4) The University of New South Wales, Sydney, 2052, Australia |
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| Abstract: | A range of performance measures are suggested and evaluated in the context of regulated industries with multiple inputs and/or multiple outputs. These measures are intended to induce optimizing behavior, i.e., to induce unit cost minimization or productivity growth maximization. Intertemporal and practical implementation issues are also considered. |
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