Firm size and productivity. Evidence from the electricity distribution industry in Brazil

►We apply Stochastic Frontier Analysis through a distance function to investigate the impact of firm's size on productivity development in electricity distribution using a sample of eighteen Brazilian firms from 1998 to 2005. ►Productivity is decomposed into technical efficiency, scale-efficiency and technical change. ►Firm size is important for the industry's productivity, and therefore a key aspect to consider when making decisions that affect the market structure in the electricity distribution industry.