2018
DOI: 10.1111/geer.12134
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Do Private Utilities Outperform Local Government-Owned Utilities? Evidence from German Retail Electricity

Abstract: Against the background of remunicipalisation trends in European public service sectors, this paper estimates firm‐level productivity for German electricity retailers and tests whether the ownership type has a significant impact on productivity. We specify a production function for the retail sector with labour and external services as main inputs, which is estimated using a control function approach. Employing a newly constructed dataset on German utilities by the German Federal Statistical Office for the year… Show more

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Cited by 11 publications
(9 citation statements)
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“…Now we proceed to investigate whether the ownership differences in firm performances is confirmed under a model of cost minimization. Table 4 presents the result of the first stage estimation, i.e., the share of revenue to cost regression of (8) where the functional form is specified as the log-level in (13). We find the coefficient for investor-owned utilities dummy is 0.37 and significant at 5 percent, implying that investor-owned utilities charge the higher price-cost margin by 37 percent on average, compared with that of cooperatives.…”
Section: Estimation Of the Cost Functionmentioning
confidence: 98%
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“…Now we proceed to investigate whether the ownership differences in firm performances is confirmed under a model of cost minimization. Table 4 presents the result of the first stage estimation, i.e., the share of revenue to cost regression of (8) where the functional form is specified as the log-level in (13). We find the coefficient for investor-owned utilities dummy is 0.37 and significant at 5 percent, implying that investor-owned utilities charge the higher price-cost margin by 37 percent on average, compared with that of cooperatives.…”
Section: Estimation Of the Cost Functionmentioning
confidence: 98%
“…11 where public firms show better economic performances than private firms. Atkinson and Halvorsen, 12 Stiel et al., 13 and Scott et al. 14 find no evidence that ownership structure has a significant impact on economic performances.…”
Section: Literature Reviewmentioning
confidence: 99%
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“…Extending the analysis to fully-privatised firms is unfortunately beyond the scope of this paper due to lack of adequate microdata on the private sector. For an empirical comparison of stateowned and fully privately-owned firms in German electricity supply, seeStiel et al (2017) andCullmann et al (2017).…”
mentioning
confidence: 99%