The Measurement of Vertical Economies and the Efficient Structure of the Electric Utility Industry

David L Kaserman and John Mayo

Journal of Industrial Economics, 1991, vol. 39, issue 5, 483-502

Abstract: In this article, the concept of multiproduct cost economies is modified to the case of production at vertically related stages to derive an explicit and general measure of economies of vertical integration. The utility of this measure is then demonstrated by estimating the vertical cost structure of the electric utility industry and by carrying out the calculations necessary to determine the magnitude of vertical economies in this industry. The results provide empirical evidence of the existence of significant economies of vertical integration between the generation and transmission/distribution stages of electricity supply. Copyright 1991 by Blackwell Publishing Ltd.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (91)

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-1821%2819910 ... 0.CO%3B2-X&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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: https://EconPapers.repec.org/RePEc:bla:jindec:v:39:y:1991:i:5:p:483-502

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-1821

Access Statistics for this article

Journal of Industrial Economics is currently edited by Pierre Regibeau, Yeon-Koo Che, Kenneth Corts, Thomas Hubbard, Patrick Legros and Frank Verboven

More articles in Journal of Industrial Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().