Application of Time Series Analysis to Relative Efficiency Assessment
Ofwat carries out relative efficiency analysis as part of its price control reviews. To date, Ofwat's analysis has focused on cross-sectional methods. A previous report for UKWIR, Review of the Approach to Efficiency Assessment in the Regulation of the UK Water Industry (07/RG/04/2), recommended the consideration of econometric modelling of time series panel data.
This report presents a series of time series panel data models for water service and sewerage service operating expenditure. It provides guidance on the specification and interpretation of time series models. It explains how these models could contribute to relative efficiency analysis for price control reviews.
The project also included the development of time series datasets and a software tool to specify and estimate time series models.
|UKWIR Reference :- 08/RG/04/3||Published Date :- 09/04/2008|
|Retail Price (£) :- 500||ISBN :- 1 84057 487 9|
Supporting Material and Reports
| Application of Time Series Analysis to Relative Efficiency Assessment - software|