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Title:From transition to competition: dynamic efficiency analysis of Polish electricity distribution companies PDF Logo
Authors:Cullmann, Astrid
von Hirschhausen, Christian R.
Issue Date:2007
Series/Report no.:Discussion papers // German Institute for Economic Research 716
Abstract: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.
Subjects:Efficiency analysis
electricity distribution
transition
econometric methods
Poland
DEA
SFA
JEL:P31
L51
L43
C1
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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