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Costs And Structure Of Technology In The Italian Water Industry

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Abstract

This paper analyses from an empirical point of view the technology underlying the Water industry. First, we study the impact of environmental and quality factors on the production process. Second, different functional forms are analysed in order to represent the technology. Overall results show that the coefficient of hedonic variables are significant and that the best functional form turns to be the transcendental logarithmic one. Finally, evidence on return to scale depends on the functional form adopted and on the inclusion of hedonic variables.

Suggested Citation

  • Paola Fabbri & Giovanni Fraquelli, 1997. "Costs And Structure Of Technology In The Italian Water Industry," CERIS Working Paper 199714, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    • Handle: RePEc:csc:cerisp:199714
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    1. Lawrence G. Hines, 1969. "The Long-Run Cost Function of Water Production for Selected Wisconsin Communities," Land Economics, University of Wisconsin Press, vol. 45(1), pages 133-140.
    2. Crain, W Mark & Zardkoohi, Asghar, 1978. "A Test of the Property-Rights Theory of the Firm: Water Utilities in the United States," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 395-408, October.
    3. Richard H. Spady & Ann F. Friedlaender, 1978. "Hedonic Cost Functions for the Regulated Trucking Industry," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 159-179, Spring.
    4. Feigenbaum, Susan & Teeples, Ronald, 1983. "Public versus Private Water Delivery: A Hedonic Cost Approach," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 672-678, November.
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    More about this item

    Keywords

    Water utilities; Costs; Technology;
    All these keywords.

    JEL classification:

    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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