Productivity evolution and Scale effects in Brazilian Electricity Distribution Industry. Evidence from 1998-2005 period

Beatriz Tovar, Francisco Ramos-Real and Edmar Fagundes de Almeida

No 04-09, Economic Reports from FEDEA

Abstract: This paper estimates the productivity evolution of the Brazilian electricity distribution industry decomposing it in terms of technical efficiency, scale-efficiency and technical change. This exercise aims to understand one important issue that has not been analyzed in previous papers, that is the impact of firm’s size in efficiency and productivity evolution. It employs stochastic frontier analysis on a panel of 18 Brazilian firms from 1998-2005. The results allow us to conclude that company size is an important issue in the evolution of the industry’s productivity and, therefore, a key aspect to consider when making decisions affecting the organization and composition of electricity distribution.

Date: 2009-04
New Economics Papers: this item is included in nep-eff and nep-ene
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