IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v20y1998i3p207-224.html
   My bibliography  Save this article

Productivity development of Norwegian electricity distribution utilities

Author

Listed:
  • Førsund, Finn R.
  • Kittelsen, Sverre A. C.

Abstract

When regulating electricity distribution utilities, estimates of the past productivity improvement performance are very important for future requirements. A piecewise linear frontier technology, reflecting observed best practice, accommodating the multi-output nature of distribution utilities is specified. A Malmquist index and its components, shift in frontier technology and change in efficiency, have been calculated for the period 1983 to 1989. The main results are a positive productivity growth averaging nearly 2% per year, and that this is mainly due to frontier technology shift. Outliers are scrutinised, but do not influence results for non-outliers.

Suggested Citation

  • Førsund, Finn R. & Kittelsen, Sverre A. C., 1998. "Productivity development of Norwegian electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 20(3), pages 207-224, September.
  • Handle: RePEc:eee:resene:v:20:y:1998:i:3:p:207-224
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928-7655(97)00028-6
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Forsund, Finn R & Hjalmarsson, Lennart, 1979. "Generalised Farrell Measures of Efficiency: An Application to Milk Processing in Swedish Dairy Plants," Economic Journal, Royal Economic Society, vol. 89(354), pages 294-315, June.
    2. Grosskopf, S, 1986. "The Role of the Reference Technology in Measuring Productive Efficiency," Economic Journal, Royal Economic Society, vol. 96(382), pages 499-513, June.
    3. Berg, Sigbjorn Atle & Forsund, Finn R & Jansen, Eilev S, 1992. " Malmquist Indices of Productivity Growth during the Deregulation of Norwegian Banking, 1980-89," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 211-228, Supplemen.
    4. Fare, Rolf & Grosskopf, Shawna & Yaisawarng, Suthathip & Li, Sung Ko & Wang, Zhaoping, 1990. "Productivity growth in Illinois electric utilities," Resources and Energy, Elsevier, vol. 12(4), pages 383-398, December.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    6. Hjalmarsson, Lennart & Veiderpass, Ann, 1992. " Productivity in Swedish Electricity Retail Distribution," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 193-205, Supplemen.
    7. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    8. Kittelsen, S.A.C., 1993. "Stepwise DEA; Choosing Variables for Measuring Technical Efficiency in Norwegian Electricity Distribution," Memorandum 06/1993, Oslo University, Department of Economics.
    9. Peter Bogetoft, 1994. "Incentive Efficient Production Frontiers: An Agency Perspective on DEA," Management Science, INFORMS, vol. 40(8), pages 959-968, August.
    10. Berg, Sigbjorn Atle & Forsund, Finn R. & Hjalmarsson, Lennart & Suominen, Matti, 1993. "Banking efficiency in the Nordic countries," Journal of Banking & Finance, Elsevier, vol. 17(2-3), pages 371-388, April.
    11. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edvardsen, Dag Fjeld & Forsund, Finn R., 2003. "International benchmarking of electricity distribution utilities," Resource and Energy Economics, Elsevier, vol. 25(4), pages 353-371, October.
    2. Forsund, Finn R. & Sarafoglou, Nikias, 2005. "The tale of two research communities: The diffusion of research on productive efficiency," International Journal of Production Economics, Elsevier, vol. 98(1), pages 17-40, October.
    3. Ylvinger, Svante, 2000. "Industry performance and structural efficiency measures: Solutions to problems in firm models," European Journal of Operational Research, Elsevier, vol. 121(1), pages 164-174, February.
    4. Afsharian, Mohsen & Ahn, Heinz & Harms, Sören Guntram, 2019. "Performance comparison of management groups under centralised management," European Journal of Operational Research, Elsevier, vol. 278(3), pages 845-854.
    5. Fernández, Ana Isabel & Gascón, Fernando & González , Eduardo, 2001. "Economic Efficiency and Value Maximization in Banking Firms," Efficiency Series Papers 2001/11, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    6. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    7. Cubbin, John & Tzanidakis, George, 1998. "Regression versus data envelopment analysis for efficiency measurement: an application to the England and Wales regulated water industry," Utilities Policy, Elsevier, vol. 7(2), pages 75-85, June.
    8. Goto, Mika & Tsutsui, Miki, 1998. "Comparison of Productive and Cost Efficiencies Among Japanese and US Electric Utilities," Omega, Elsevier, vol. 26(2), pages 177-194, April.
    9. Canhoto, Ana & Dermine, Jean, 2003. "A note on banking efficiency in Portugal, New vs. Old banks," Journal of Banking & Finance, Elsevier, vol. 27(11), pages 2087-2098, November.
    10. Finn Førsund & Dag Edvardsen & Sverre Kittelsen, 2015. "Productivity of tax offices in Norway," Journal of Productivity Analysis, Springer, vol. 43(3), pages 269-279, June.
    11. Cherchye, L. & Post, G.T., 2001. "Methodological Advances in Dea," ERIM Report Series Research in Management ERS-2001-53-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    12. Fadzlan Sufian & Fakarudin Kamarudin, 2014. "The impact of ownership structure on bank productivity and efficiency: Evidence from semi-parametric Malmquist Productivity Index," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-27, December.
    13. Cheng, Xiaomei & Bjørndal, Endre & Lien, Gudbrand & Bjørndal, Mette, 2015. "Productivity Development for Norwegian Electricity Distribution Companies 2004-2013," Discussion Papers 2015/27, Norwegian School of Economics, Department of Business and Management Science.
    14. Lee, Jeong Yeon & Kim, Doyeon, 2013. "Bank performance and its determinants in Korea," Japan and the World Economy, Elsevier, vol. 27(C), pages 83-94.
    15. Diego Prior, 2006. "Efficiency and total quality management in health care organizations: A dynamic frontier approach," Annals of Operations Research, Springer, vol. 145(1), pages 281-299, July.
    16. Peter Bogetoft & Dexiang Wang, 2005. "Estimating the Potential Gains from Mergers," Journal of Productivity Analysis, Springer, vol. 23(2), pages 145-171, May.
    17. Sickles, Robin C. & Song, Wonho & Zelenyuk, Valentin, 2018. "Econometric Analysis of Productivity: Theory and Implementation in R," Working Papers 18-008, Rice University, Department of Economics.
    18. Lu, Wen-Min & Liu, John S. & Kweh, Qian Long & Wang, Chung-Wei, 2016. "Exploring the benchmarks of the Taiwanese investment trust corporations: Management and investment efficiency perspectives," European Journal of Operational Research, Elsevier, vol. 248(2), pages 607-618.
    19. W. Erwin Diewert & Kevin J. Fox, 2014. "Decomposing Bjurek Productivity Indexes into Explanatory Factors," Discussion Papers 2014-33, School of Economics, The University of New South Wales.
    20. Førsund, Finn R. & Hjalmarsson, Lennart, 2008. "Dynamic Analysis of Structural Change and Productivity Measurement," Memorandum 27/2008, Oslo University, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:20:y:1998:i:3:p:207-224. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.