The Cost Efficiency of the Brazilian Electricity Distribution Utilities : A Comparison of Bayesian SFA and DEA Models

The purpose of this study is to evaluate the efficiency indices for 60 Brazilian electricity distribution utilities. These scores are obtained by DEA (Data Envelopment Analysis) and Bayesian Stochastic Frontier Analysis models, two techniques that can reduce the information asymmetry and improve the...

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Bibliographic Details
Published in:Mathematical problems in engineering 2010, Vol.2010 (2010), p.1-20
Main Authors: Pereira de Souza, Marcus Vinicius, Diallo, Madiagne, Castro Souza, Reinaldo, Baidya, Tara Keshar Nanda
Format: Article
Language:English
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Summary:The purpose of this study is to evaluate the efficiency indices for 60 Brazilian electricity distribution utilities. These scores are obtained by DEA (Data Envelopment Analysis) and Bayesian Stochastic Frontier Analysis models, two techniques that can reduce the information asymmetry and improve the regulator's skill to compare the performance of the utilities, a fundamental aspect in incentive regulation schemes. In addition, this paper also addresses the problem of identifying outliers and influential observations in deterministic nonparametric DEA models.
ISSN:1024-123X
1563-5147