Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55285 
Year of Publication: 
2011
Series/Report no.: 
DIW Discussion Papers No. 1118
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
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

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