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

  • Tovar, Beatriz
  • Javier Ramos-Real, Francisco
  • de Almeida, Edmar Fagundes

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.

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Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 39 (2011)
Issue (Month): 2 (February)
Pages: 826-833

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Handle: RePEc:eee:enepol:v:39:y:2011:i:2:p:826-833
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