Separability test for the electricity supply industry
检验电力行业垂直整合的技术效率损失，使用超越对数生产函数和Allen-Uzawa替代弹性检验三种可分离性假设，结果均被拒绝，表明拆分会导致效率损失。
Abstract This paper examines the vertical integration issue of the electricity industry. This industry is typically vertically integrated and heavily regulated. The paper investigates the potential technological efficiency loss due to the vertical disintegration using the translog production function. Three separability hypotheses using the Allen‐Uzawa elasticity of substitution are tested to examine the feasibility of various degrees of disintegration of the current industry structure. All three separability hypotheses are rejected, and the cost of disintegration is estimated. Further, estimates indicate that the electricity industry appears to have exhausted economies of scale. Unlike other deregulated industries, disintegration of the electricity industry will entail technological efficiency loss.