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Cost of Water Delivery Systems: Specification and Ownership Effects

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  • Teeples, Ronald K
  • Glyer, David
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    Abstract

    Three cost models of water delivery systems are replicated as alternative specifications of a general form. A dual cost function methodology is followed, usin g firm-specific data and ownership proxies, to trace the effects that numerous technical constraints and variable specifications have on t he relative efficiency of firms by ownership type. Results show that apparent overall efficiency differences reduce to insignificance as s pecification improves. This partly explains why past studies of overa ll efficiency of ownership forms have yielded mixed, and in some inst ances, unreliable results. The partial efficiency results point to fu ture public-private research methods. Copyright 1987 by MIT Press.

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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics & Statistics.

    Volume (Year): 69 (1987)
    Issue (Month): 3 (August)
    Pages: 399-408

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    Handle: RePEc:tpr:restat:v:69:y:1987:i:3:p:399-408

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    Web page: http://mitpress.mit.edu/journals/

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    Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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    Cited by:
    1. Paola Fabbri & Giovanni Fraquelli, 2000. "Costs and Structure of Technology in the Italian Water Industry," Empirica, Springer, Springer, vol. 27(1), pages 65-82, March.
    2. Alessandro Marra, 2006. "Mixed Public-Private Enterprises in Europe: Economic Theory and an Empirical Analysis of Italian Water Utilities," Bruges European Economic Research Papers, European Economic Studies Department, College of Europe 4, European Economic Studies Department, College of Europe.
    3. Tim Coelli & Shannon Walding, 2005. "Performance Measurement in the Australian Water Supply Industry," CEPA Working Papers Series, School of Economics, University of Queensland, Australia WP012005, School of Economics, University of Queensland, Australia.
    4. Valeria Di Cosmo, 2011. "Are the Consumers Always Ready to Pay? A Quasi-Almost Ideal Demand System for the Italian Water Sector," Water Resources Management, Springer, Springer, vol. 25(2), pages 465-481, January.
    5. Miguel A. García-Rubio & Francisco González-Gómez & Jorge Guardiola, 2009. "Performance and ownership in the governance of urban water," FEG Working Paper Series, Faculty of Economics and Business (University of Granada) 09/03, Faculty of Economics and Business (University of Granada).
    6. Sabbioni, Guillermo, 2008. "Efficiency in the Brazilian sanitation sector," Utilities Policy, Elsevier, Elsevier, vol. 16(1), pages 11-20, March.
    7. Johnstone, Nick & Wood, Libby & Hearne, Robert R., 1999. "The Regulation of Private Sector Participation in Urban Water Supply and Sanitation: Realising Social and Environmental Objectives in Developing Countries," Discussion Papers, International Institute for Environment and Development, Environmental Economics Programme 24142, International Institute for Environment and Development, Environmental Economics Programme.
    8. Francisco González Gómez & Miguel Angel García Rubio, 2008. "Efficiency in the management of urban water services. What have we learned after four decades of research?," Hacienda Pública Española, IEF, IEF, vol. 185(2), pages 39-67, July.
    9. Francisco González-Gómez & Miguel García‐Rubio & Francisco Alcalá-Olid & M. Ortega-Díaz, 2013. "Outsourcing and Efficiency in the Management of Rural Water Services," Water Resources Management, Springer, Springer, vol. 27(3), pages 731-747, February.
    10. Willner, Johan, 2001. "Ownership, efficiency, and political interference," European Journal of Political Economy, Elsevier, Elsevier, vol. 17(4), pages 723-748, November.
    11. Abbott, Malcolm & Cohen, Bruce, 2009. "Productivity and efficiency in the water industry," Utilities Policy, Elsevier, Elsevier, vol. 17(3-4), pages 233-244, September.
    12. Valeria Cosmo, 2013. "Ownership, Scale Economies and Efficiency in the Italian Water Sector," Journal of Industry, Competition and Trade, Springer, Springer, vol. 13(3), pages 399-415, September.
    13. Bhattacharyya, Arunava & Harris, Thomas R. & Narayanan, Rangesan & Raffiee, Kambiz, 1995. "Specification and estimation of the effect of ownership on the economic efficiency of the water utilities," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 25(6), pages 759-784, December.
    14. Mbuvi, Dorcas & Tarsim, Achraf, 2011. "Managerial ownership and urban water utilities efficiency in Uganda," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    15. Wallsten, Scott & Kosec, Katrina, 2008. "The effects of ownership and benchmark competition: An empirical analysis of U.S. water systems," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 26(1), pages 186-205, January.
    16. World Bank, 2006. "Poverty, Growth, and Environment in Brazil : Spatial Insights for Policymaking," World Bank Other Operational Studies 12852, The World Bank.

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