Article

 

Technical Efficiency and Macroeconomic Determinants for the Greek Power Industry before liberalization: A Stochastic Frontier Approach (p.37-53)

by

Athena Belegri-Roboli, National Technical University of Athens

Panayotis G. Michaelides, National Technical University of Athens

Keywords : power Industry, technical efficiency determinants, Greece

JEL classification : L94

Abstract

The derivation of efficiency estimates for the Power Industry is significant for policy design. This paper analyzes technical efficiency and its macroeconomic determinants for the case of the Greek Public Power Industry before liberalization. Technical efficiency is estimated by means of stochastic frontier analysis (S.F.A.) and its macroeconomic determinants are also evaluated. The industry’s technical efficiency ranged between 83% and 100% with an average equal to 94% and achieving its maximum performance in 1974 and 1992. Important determinants of technical efficiency are the scale of operation and the country’s incorporation in the wider European Union (E.U.) area.