Firm size and productivity. Evidence from the electricity distribution industry in Brazil

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

Energy Policy, 2011, vol. 39, issue 2, 826-833

Abstract: In this paper we apply Stochastic Frontier Analysis through a distance function to investigate the impact of firm size on productivity development in electricity distribution. We use a sample of seventeen Brazilian firms from 1998 to 2005 and decompose productivity into technical efficiency, scale efficiency and technical change. Moreover, a further step is to decompose the technical change measurement into several components. The results indicate that firm size is important for industry's productivity, and therefore a key aspect to consider when making decisions that affect the market structure in the electricity distribution industry.

Keywords: Brazil; electricity; distribution; Firm; size; Productivity; decomposition.; L94 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:39:y:2011:i:2:p:826-833

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