Economics at your fingertips  

Yardstick Cost Comparison and Economies of Scale and Scope in Japan's Electric Power Industry

Takanori Ida and Tetsuya Kuwahara

Asian Economic Journal, 2004, vol. 18, issue 4, 423-438

Abstract: This paper utilizes a fixed‐effects model of panel data analysis and estimates the translog cost function of the Japanese electric power industry from 1978 to 1998. First, we investigate whether the Japanese electric power industry is naturally monopolistic. We find that all electric power companies still benefit from both scale and scope economies and therefore, this industry remains a naturally mono‐polistic industry. Second, in order to apply the idea of yardstick‐type competition to a naturally monopolistic industry where costs are quite different between companies, we introduce two kinds of cost‐comparison coefficients, one for the individually specific effects and the other for scale and scope economies.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1351-3958

Access Statistics for this article

Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe

More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2021-05-12
Handle: RePEc:bla:asiaec:v:18:y:2004:i:4:p:423-438