Plant size and Technical Efficiency in the Indian Thermal Power Industry

Joga Singh
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Joga Singh: Shri Ram College of Commerce, University of Delhi

Indian Economic Review, 1991, vol. 26, issue 2, 239-252

Abstract: Technical efficiencies of the Indian thermal power industry have been computed in the framework of a frontier production function. Two linear programming exercises are carried out with plantwise data for 1986-87. The efficiency estimates from these exercises are used to compute two regression equations to examine whether the size of a plant does effect its technical efficiency. Our results show that the technical efficiency of a plant is positively associated with its size and capacity utilisation but not with its location.

Date: 1991
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