Author:
Silva Washington Martins,Candido Osvaldo
Abstract
PurposeThis paper aims to assess all the Brazilian electric power transmission line auctions occurred between 1999 and 2017.Design/methodology/approachA copula-based Roy/endogenous switching regression model is used. The suitability of this model is twofold: it takes into account the selection bias problem involving auctions data and it allows more flexibility in modeling the joint distribution between the unobserved components of the selection and outcome equations; thus, normal distribution assumptions are not needed.FindingsThe main results suggest that stated-owned companies have the highest probability of winning an auction, and there is a non-competitive behavior among the players in the auction. The results also suggest some departure from joint normality in the data.Originality/valueThe copula-based sample selection approach used in this paper is consistent under non-normality and allows one to address different types of nonlinearities in the data such as asymmetry and heavy tails.
Subject
General Economics, Econometrics and Finance
Reference23 articles.
1. Strategic behaviour of winning bids in the brazilian transmission auctions,2010
2. Out-of-sample comparison of copula specifications in multivariate density forecasts;Journal of Economic Dynamics and Control,2010
3. The generalized roy model and the cost-benefit analysis of social programs;Journal of Political Economy,2015
4. Energy technology innovation in Brazil;International Journal of Energy Economics and Policy,2015
5. Copulas in econometrics;Annual Review of Economics,2014
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献