Productivity in Electricity Retail after Market Liberalisation: Analysing the Effects of Ownership and Firm's Governance Structure

Caroline Stiel, Astrid Cullmann and Maria Nieswand

No 1531, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper, which is one of the first to estimate productivity in retail electricity for a European country after liberalisation, analyses the effect of ownership and governance structure by using a unique dataset of German electricity retailers from 2003 to 2012. An innovative service production function for the retail sector is derived with labour and external services as the main inputs. A structural model is used with a proxy function for productivity to overcome the endogeneity of input choice. Ownership is controlled for in the law of motion for productivity. The results of the dataset used to validate the model show that firm-level productivity did not increase after 2008 and that ownership had no effect on productivity. The results provide useful insights into the link between ownership and productivity in modern public enterprises after liberalisation.

Keywords: Productivity; structural production function; electricity retail; ownership; governance (search for similar items in EconPapers)
JEL-codes: C23 D24 L11 L94 (search for similar items in EconPapers)
Pages: 30 p.
Date: 2015
New Economics Papers: this item is included in nep-eff, nep-ene and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp1531

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