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TECHNICAL EFFICIENCY OF RURAL WATER UTILITIES

Arunava Bhattacharyya, Thomas Harris, Rangesan Narayanan and Kambiz Raffiee
Authors registered in the RePEc Author Service: Tom Harris

Journal of Agricultural and Resource Economics, 1995, vol. 20, issue 2, 19

Abstract: Technical efficiency of rural water utilities is determined using frontier production functions. An indirect production function is developed to model the two-step production process of a local government-controlled firm. Data from 26 rural Nevada water utilities are used to estimate inefficiency in terms of firm-specific variables. A multistep estimation procedure is used instead of single-step maximum likelihood estimation. Model selection tests are used to choose the best model. Privately owned utilities are most efficient; self-governing water districts are the least efficient. Municipal governments operate the most and least efficient utilities.

Keywords: Resource; /Energy; Economics; and; Policy (search for similar items in EconPapers)
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jlaare:30764

DOI: 10.22004/ag.econ.30764

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