University of Tabriz
Islamic World Science Citation Center (ISC)
Mirhashemi Dehnavi, S., Sadraei Javaheri, A., Marzban, H., Mirdehghan, S. (2017). A Test for Natural Monopoly in Iranian Electricity Distribution Industry: A Panel Random Coefficients Model Analysis. , 4(1), 119-148.
Sayed Mohamad Mirhashemi Dehnavi; Ahmad Sadraei Javaheri; Hossein Marzban; Sayed Morteza Mirdehghan. "A Test for Natural Monopoly in Iranian Electricity Distribution Industry: A Panel Random Coefficients Model Analysis". , 4, 1, 2017, 119-148.
Mirhashemi Dehnavi, S., Sadraei Javaheri, A., Marzban, H., Mirdehghan, S. (2017). 'A Test for Natural Monopoly in Iranian Electricity Distribution Industry: A Panel Random Coefficients Model Analysis', , 4(1), pp. 119-148.
Mirhashemi Dehnavi, S., Sadraei Javaheri, A., Marzban, H., Mirdehghan, S. A Test for Natural Monopoly in Iranian Electricity Distribution Industry: A Panel Random Coefficients Model Analysis. , 2017; 4(1): 119-148.

A Test for Natural Monopoly in Iranian Electricity Distribution Industry: A Panel Random Coefficients Model Analysis

نظریه های کاربردی اقتصاد
Article 5, Volume 4, Issue 1 - Serial Number 12, May 2017, Pages 119-148    PDF (1.03 M)
Document Type: Research Paper
Authors
Sayed Mohamad Mirhashemi Dehnavi1; Ahmad Sadraei Javaheri* 2; Hossein Marzban2; Sayed Morteza Mirdehghan3
1Ph.D. Candidate in Economics, Shiraz University,
2Associate Professor of Economics, Shiraz University
3Associate Professor of Mathematics, Shiraz University
Abstract
In economics, natural monopoly is described as a situation in which, for structural reasons, only one firm finds it profitable to produce in the market. This Concept is more important and more practical in Industries that faced price and non-price regulation such as water, gas and electricity distribution and telecommunication. In this study natural monopoly structure in Iranian electricity distribution was investigated. To this, a Translog cost function was employed. Relative capital price, relative other input price and customer electricity sales were assumed as input price vector and output, respectively. In order to estimate the second order approximation of Translog cost function, the random coefficient model in panel data and the data of 2004 till 2014 were used. The results showed the existence of natural monopoly in some companies in contrast to other.
Keywords
Natural monopoly; Economies of scale. Iranian electricity distribution companies; Translog cost function; Random coefficient model in panel data
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