Working papers, Department of Economics, WU (Wirtschaftsuniversität Wien)
Productivity Growth and the General X-factor in Austria’s Gas Distribution
() and Mario Liebensteiner
Abstract: We estimate cost functions to derive productivity growth
using a unique database on costs and outputs of essentially all regulated
Austrian gas distribution companies over the period 2002–2013, covering the
times before and after the introduction of incentive regulation in 2008. We
estimate a concave relation between total costs and time, and a significant
one-off but permanent reduction in real costs after an imposed reduction in
granted costs in the course of the introduction of incentive regulation.
Our results imply that technological opportunities were higher in the early
years of the sample than in later years, and that productivity growth
grinded to a halt from 2008 on. We conclude that technological
opportunities are exhausted (for the time being) in the Austrian gas
distribution sector giving rise to an optimal general X factor (X-gen) of
zero for the foreseeable future.
Keywords: X-gen, Productivity, Regulation, Gas distribution; (follow links to similar papers)
JEL-Codes: L22,; L25,; L51,; Q48; (follow links to similar papers)
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design Joakim Ekebom