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Efficiency analysis of East European electricity distribution in transition: legacy of the past?

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  • Astrid Cullmann

  • Christian Hirschhausen

Abstract

This paper provides a cross-country efficiency analysis of electricity distribution companies in East European transition countries (Poland, Czech Republic, Slovakia and Hungary). We compare the relative technical efficiency of East European regional distribution companies (RDCs) among themselves, as well as with German RDCs. We use the nonparametric DEA, and also apply bootstrapping techniques and the FDH-estimator; in addition, we carry out parametric analyses, mainly SFA (stochastic frontier analysis) and COLS (corrected ordinary least squares). The results suggest that the Polish distribution companies are still inefficiently small. The Czech Republic and Slovakia feature the highest efficiency.
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Suggested Citation

  • Astrid Cullmann & Christian Hirschhausen, 2008. "Efficiency analysis of East European electricity distribution in transition: legacy of the past?," Journal of Productivity Analysis, Springer, vol. 29(2), pages 155-167, April.
    • Handle: RePEc:kap:jproda:v:29:y:2008:i:2:p:155-167
    DOI: 10.1007/s11123-007-0075-1
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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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