Stay Public or Go Private?: a Comparative Analysis of Water Services between Quito and Guayaquil

46 Pages Posted: 20 Apr 2011

See all articles by Paul E. Carrillo

Paul E. Carrillo

George Washington University - Department of Economics

Orazio Bellettini

affiliation not provided to SSRN

Elizabeth Coombs

Think Tank Initiative - Fundación para el Avance de las Reformas y las Oportunidades (Grupo FARO)

Date Written: August 2007

Abstract

This paper computes several indicators of water coverage, quality, and prices in Ecuador’s two largest cities: Quito and Guayaquil—both before and after the privatization of water services in Guayaquil. The type of data sources that are used make it possible to specifically control for income and, thus, to evaluate changes in water provision, particularly among the poor. These indicators provide useful information about how certain water-related services have changed over time and facilitate evaluating the performance of each company. It should be emphasized, however, that such estimates cannot be used to identify the causal effects of the privatization of water provision. In particular, differences in a) before-concession water-coverage trends, c) rural-to-urban migration patterns, and c) other idiosyncratic institutional characteristics between these two cities, suggest that Quito may not be a suitable control group for identifying the casual effects of privatization.

Suggested Citation

Carrillo, Paul E. and Bellettini, Orazio and Coombs, Elizabeth, Stay Public or Go Private?: a Comparative Analysis of Water Services between Quito and Guayaquil (August 2007). IDB Working Paper No. 223, Available at SSRN: https://ssrn.com/abstract=1815904 or http://dx.doi.org/10.2139/ssrn.1815904

Paul E. Carrillo (Contact Author)

George Washington University - Department of Economics ( email )

Monroe Hall Suite 340
2115 G Street NW
Washington, DC 20052
United States

Orazio Bellettini

affiliation not provided to SSRN

No Address Available

Elizabeth Coombs

Think Tank Initiative - Fundación para el Avance de las Reformas y las Oportunidades (Grupo FARO)

Ecuador

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