Resource title

From transition to competition: dynamic efficiency analysis of Polish electricity distribution companies

Resource image

image for OpenScout resource :: From transition to competition: dynamic efficiency analysis of Polish electricity distribution companies

Resource description

In this paper we test the hypothesis that the economic transition toward a market economy increases the efficiency of firms. We study 32 Polish electricity distribution companies between 1997-2002, by applying common benchmarking methods to the panel: the nonparametric data envelopment analysis (DEA), the free disposal hull (FDH), and, as a parametric approach, the stochastic frontier analysis (SFA). We then measure and decompose productivity change with Malmquist indices. We find that the technical efficiency of the companies has indeed increased during the transition, while allocative efficiency has deteriorated. We also find significantly increasing returns to scale, suggesting that the regulatory authority should allow companies to merge into larger units.

Resource author

Astrid Cullmann, Christian R. von Hirschhausen

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/27240

Resource license

Adapt according to the presented license agreement and reference the original author.