This paper tests the impact of institutional quality on the performance of thermal power sector in India. We estimate a translog inefficiency effects stochastic frontier model using plant age, plant capacity and an index of regulatory governance as determinants of inefficiency. The dataset...

In developing countries, industries are often plagued with power shortages. In response, some firms make their own electric power but most of the others do not. Why do we observe such divergent behavior in the decision to self-generate? Previous literature focuses on factor demand and marginal...