Local Government Control and Efficiency of the Water Industry: An Empirical Analysis of Water Suppliers in East Germany
The paper deals with the effects of local governments’ interference with business affairs of publicly owned utilities. A partial model is presented to illustrate the consequences of “democratic control” for the public managers’ effort and the efficiency of local public production. To check the theoretical results empirically, a two-stage data envelopment analysis (DEA) is carried out for a sample of East German water suppliers. The organisational form is used as a measure for the degree of municipal control. The results of the OLS- and Tobit regression indicate an efficiency-enhancing effect of organisational forms with less distinctive control options for local politicians.
|Date of creation:||Feb 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Kleine Märkerstrasse 8, 06108 Halle (Saale)|
Phone: (0345) 7753-60
Fax: (0345) 7753-820
Web page: http://www.iwh-halle.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Antonio Estache & Martin Rossi, 2002.
"How different is the efficiency of Public and Private Water Companies in Asia,"
ULB Institutional Repository
2013/43984, ULB -- Universite Libre de Bruxelles.
- Antonio Estache & MartÌn A. Rossi, 2002. "How Different Is the Efficiency of Public and Private Water Companies in Asia?," World Bank Economic Review, World Bank Group, vol. 16(1), pages 139-148, June.
- Jean Tirole & Jean-Jaques Laffont, 1985.
"Using Cost Observation to Regulate Firms,"
368, Massachusetts Institute of Technology (MIT), Department of Economics.
- Tito Belchior Moreira & Geraldo da Silva Souza & Ricardo Coelho Faria, 2005. "Public Versus Private Water Utilities: Empirical Evidence for Brazilian Companies," Economics Bulletin, AccessEcon, vol. 8(2), pages 1-7.
- John Ashton, 2000. "Cost efficiency in the UK water and sewerage industry," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 455-458.
- Serge Garcia & Alban Thomas, 2003. "Regulation of Public Utilities under Asymmetric Information," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 145-162, September.
- Crew, Michael A & Kleindorfer, Paul R, 2002. "Regulatory Economics: Twenty Years of Progress?," Journal of Regulatory Economics, Springer, vol. 21(1), pages 5-22, January.
- Veall, Michael R & Zimmermann, Klaus F, 1994. "Goodness of Fit Measures in the Tobit Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 485-99, November.
- R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
- Wyckoff, Paul Gary, 1990. "The Simple Analytics of Slack-Maximizing Bureaucracy," Public Choice, Springer, vol. 67(1), pages 35-47, October.
- Thanassoulis, Emmanuel, 2000. "The use of data envelopment analysis in the regulation of UK water utilities: Water distribution," European Journal of Operational Research, Elsevier, vol. 126(2), pages 436-453, October.
- Saal, David S & Parker, David, 2001. "Productivity and Price Performance in the Privatized Water and Sewerage Companies of England and Wales," Journal of Regulatory Economics, Springer, vol. 20(1), pages 61-90, July.
- Arunava Bhattacharyya & Elliott Parker & Kambiz Raffiee, 1994. "An Examination of the Effect of Ownership on the Relative Efficiency of Public and Private Water Utilities," Land Economics, University of Wisconsin Press, vol. 70(2), pages 197-209.
- Isabelle Brocas & Kitty Chan & Isabelle Perrigne, 2006. "Regulation under Asymmetric Information in Water Utilities," American Economic Review, American Economic Association, vol. 96(2), pages 62-66, May.
- repec:ebl:ecbull:v:8:y:2005:i:2:p:1-7 is not listed on IDEAS
- 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, vol. 25(6), pages 759-784, December.
- Cubbin, John & Tzanidakis, George, 1998. "Regression versus data envelopment analysis for efficiency measurement: an application to the England and Wales regulated water industry," Utilities Policy, Elsevier, vol. 7(2), pages 75-85, June.
- Peter Friedrich & Anita Kaltschuetz & Chang Woon Nam, 2004. "Significance and Determination of Fees for Municipal Finance," CESifo Working Paper Series 1357, CESifo Group Munich.
- Cécile Aubert & Arnaud Reynaud, 2005. "The Impact of Regulation on Cost Efficiency: An Empirical Analysis of Wisconsin Water Utilities," Journal of Productivity Analysis, Springer, vol. 23(3), pages 383-409, 07.
- Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer;Regional Science Association International, vol. 80(2), pages 211-230.
- repec:zbw:iwhwiw:2-06-3 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:iwh:dispap:3-07. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tobias Henning)
If references are entirely missing, you can add them using this form.