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

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

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.

Suggested Citation

  • Tovar, Beatriz & Javier Ramos-Real, Francisco & de Almeida, Edmar Fagundes, 2011. "Firm size and productivity. Evidence from the electricity distribution industry in Brazil," Energy Policy, Elsevier, vol. 39(2), pages 826-833, February.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:2:p:826-833
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    More about this item

    Keywords

    Brazil electricity distribution Firm size Productivity decomposition. L94;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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