Under pressure: community water systems in the United States—a production model with water quality and organization type effects

Roberto Mosheim ()

Journal of Productivity Analysis, 2014, vol. 42, issue 3, 277-292

Abstract: This paper examines the interaction of productive efficiency, water quality and organizational type. A water quality index is constructed employing various contaminants which are then treated together with variables including organizational type as endogenous in an input distance function model. The cost of drinking water quality and inefficiency are derived and hypothesis tests estimated concerning their variation by location, organization type and water quality. The key findings are that more technically efficient water utilities deliver higher quality drinking water and that private firms distribute higher quality water at a higher price and at a higher implicit cost than public utilities despite no overall inefficiency differences between the two organizational types. Copyright Springer Science+Business Media New York (outside the USA) 2014

Keywords: Water utilities; Water quality; Organizational form; L25; L33; L95 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jproda:v:42:y:2014:i:3:p:277-292

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DOI: 10.1007/s11123-014-0406-y

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