Abstract

http://ssrn.com/abstract=1815137
 


 



The Performance of German Water Utilities: A (Semi)-Parametric Analysis


Michael Zschille


German Institute for Economic Research (DIW Berlin)

Matthias Walter


affiliation not provided to SSRN

April 2011

DIW Berlin Discussion Paper No. 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.

Number of Pages in PDF File: 36

Keywords: Water supply, technical efficiency, data envelopment analysis, stochastic frontier analysis, structural variables, bootstrapped truncated regression

JEL Classification: L95, C14, Q25

working papers series





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Date posted: April 22, 2011  

Suggested Citation

Zschille, Michael and Walter, Matthias, The Performance of German Water Utilities: A (Semi)-Parametric Analysis (April 2011). DIW Berlin Discussion Paper No. 1118. Available at SSRN: http://ssrn.com/abstract=1815137 or http://dx.doi.org/10.2139/ssrn.1815137

Contact Information

Michael Zschille (Contact Author)
German Institute for Economic Research (DIW Berlin) ( email )
Mohrenstraße 58
Berlin, 10117
Germany
Matthias Walter
affiliation not provided to SSRN ( email )
Feedback to SSRN


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