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Title:The performance of German water utilities: A (semi)-parametric analysis PDF Logo
Authors:Zschille, Michael
Walter, Matthias
Issue Date:2011
Series/Report no.:Discussion papers // German Institute for Economic Research 1118
Abstract:Germany's water supply industry is characterized by a multitude of utilities and widely diverging prices, possibly resulting from structural differences beyond the control of firms' management, but also from inefficiencies. In this article we use Data Envelopment Analysis and Stochastic Frontier Analysis to determine the utilities' technical efficiency scores based on cross-sectional data from 373 public and private water utilities in 2006. We find large differences in technical efficiency scores even after accounting for significant structural variables like network density, share of groundwater usage and water losses.
Subjects:water supply
technical efficiency
Data Envelopment Analysis
Stochastic Frontier Analysis
structural variables
bootstrapped truncated regression
JEL:L95
C14
Q25
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des DIW
DIW-Diskussionspapiere

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