Service Quality in Electricity Distribution in Brazil: A Malmquist Approach

28 Pages Posted: 7 Feb 2017

See all articles by Alexandre Marinho

Alexandre Marinho

IPEA Institute for Applied Economic Research

Marcelo Resende

Universidade Federal do Rio de Janeiro (UFRJ); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: January 17, 2017

Abstract

The paper undertakes a dynamic analysis for service quality in the electricity distribution in Brazil between 2010 and 2014 based on Malmquist indexes constructed upon Data Envelopment Analysis (DEA) distance functions. The motivation for the less usual consideration of efficiency frontiers for service-quality builds on previous static applications in the context of telecommunications as given by Façanha and Resende (2004), Resende and Façanha (2005) and Resende and Tupper (2009). The analysis treats undesirable technical indicators as inputs and desirable consumer satisfaction indicators as outputs. The bootstrap- corrected Malmquist indexes indicated that service quality is an important concern as the evidence respectively indicates quality deterioration in 38.1%, quality stagnation in 40.5% and quality improvement only in 21.4% of the cases. When one decomposes the Malmquist index, the evidence does not suggest relevant frontier shifts and indicates a dominant role for the catch-up effect.

Keywords: service quality, consumer satisfaction, electricity distribution, Brazil

Suggested Citation

Marinho, Alexandre and Resende, Marcelo, Service Quality in Electricity Distribution in Brazil: A Malmquist Approach (January 17, 2017). CESifo Working Paper Series No. 6276, Available at SSRN: https://ssrn.com/abstract=2912957

Alexandre Marinho

IPEA Institute for Applied Economic Research ( email )

Av. Presidente Antonio Carlos 51
Rio de Janeiro RJ 20020-010
Brazil
+55 21 804-8154 (Phone)
+55 21 240-1920 (Fax)

Marcelo Resende (Contact Author)

Universidade Federal do Rio de Janeiro (UFRJ) ( email )

Rua Sao Francisco Xavier, 524
Instituto de Economia
Rio de Janeiro RJ 21949
Brazil

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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