Abstract
The early studies indicated that the firm with monopoly power is likely to engage in X-inefficiency such as a managerial slack. The reflection of the X-inefficiency theory has led to the issue that the public sector may be more inefficient than the private sector. In Korea like other many countries the electricity gas water service which can be considered as natural monopoly have been provided mostly by the public sector. In order to provide the empirical evidence to the argument that the public sector may be more inefficient than the private sector this paper estimated the four types of Solow residual which is called the total factor productivity in the electricity gas water service industry with the associated empirical model and compared its productivity with one in the manufacturing industry. The empirical results do not support the argument that the public sector may be more inefficient or less productive than the private sector.
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