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Electricity Distribution and Technical Efficiency in Argentina: An Application of Stochastic Frontier Analysis (SFA) using Functions of Distance
The rate is the most important variable in the complex organization of the regulation of the electricity system, and particularly of the distribution activity. The financial crisis of 2009 and the negative experience of some privatizations internationally together with weak economic literature regar...
The rate is the most important variable in the complex organization of the regulation of the electricity system, and particularly of the distribution activity. The financial crisis of 2009 and the negative experience of some privatizations internationally together with weak economic literature regarding the ownership / efficiency ratio, revived the debate on analyzing the relationship between public / private ownership of the company and its efficiency technique; measurement of the latter and appropriate regulatory scheme for power distribution. The aim of this paper is to measure the technical efficiency of power distribution companies of Argentina using techniques of distance functions under the framework of stochastic frontier analysis, in order to build a ranking of efficiency between private and public companies.
