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A Benchmarking Exercise on Latin American Water Util

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  • Romero, Carlos A.

    ()
    (Universidad Argntina de la Empresa)

  • Ferro, Gustavo

    ()
    (Universidad Argntina de la Empresa)

Abstract

The aim of this study is to estimate both stochastic and mathematical programming cost functions and frontier studies with the ADERASA’s database. ADERASA is a Latin American association of water regulators, which has done a systematic effort on data collection. Econometric and DEA techniques were employed here. This study fills a gap on the understanding of relative efficiency in the Latin American water sector., through a consistent database. Firstly we present a survey of the empirical literature related with cost and production frontiers in the water and sanitation sector. The survey shed light in order to determine the variables to choose in the models to be estimated. Secondly, some models were estimated, differing each other on the specification, and the environmental variables included. The results are satisfactory, with the expected signs and plausible values for the coefficients. Some consistency between methodologies was found.

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Bibliographic Info

Paper provided by Instituto de Economía, Universidad Argentina de la Empresa in its series UADE Working Papers with number 27_2008.

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Length: 23 pages
Date of creation: 01 Aug 2008
Date of revision:
Handle: RePEc:ris:uadewp:2008_027

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Web page: http://www.uade.edu.ar/paginas/InstEconomiaIDE.aspx
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Keywords: Benchmarking; cost functions; frontier; stochastic model; ADERASA;

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